Alternative Fuels

XFuel: Second-generation biofuels will unlock new possibilities in shipping’s green new era

Advanced biofuels allow shipowners, bunker suppliers, and port authorities to freely blend biofuel and non-biofuel bunkers to cut their emissions, says Dr Nicholas Bell, CEO of XFuel.

Published

2 years ago

September 22, 2022

Admin

The following is an article written by Dr Nicholas Ball, CEO of second-generation biofuel and refinery provider XFuel on the role second-generation biofuels can play in accelerating shipping’s decarbonisation. The article was shared with Singapore bunkering publication Manifold Times:

Second-generation biofuels from sustainable waste feedstocks are urgently needed to accelerate shipping’s decarbonisation transition, and deliver a cost-effective and fast path to net-zero.

The shipping sector is increasingly recognising the importance of decarbonisation. However it still lacks a definitive pathway to reach it. Regulators, including the IMO and the EU, have set concrete emissions reduction targets – with even more ambitious targets expected in the coming years. At the same time, cargo owners are starting to put commercial pressure on shipowners and charterers to deliver low-carbon options today.

Yet, commercial shipping is widely recognised as one of the hardest sectors to decarbonise. According to a recent report by think tank Nordic West Office, entitled Maritime Transition Scenarios, on its current trajectory, the shipping industry will fail to meet the IMO targets of 50% CO2 reductions by 2050. It might meet Paris targets under the most optimistic of scenarios, but this isn’t guaranteed.

This sentiment of “falling short of targets” appears consensual. In September, London-based energy consultants Argus Media warned that the upcoming Cop 27 was unlikely to speed up maritime emissions cuts. Equally, MAN Energy Solutions’ Chief Sales Officer Wayne Jones recently warned that the marine industry is moving too slowly in relation to decarbonisation, and encouraged regulatory bodies to adopt regulations that invite capital into the production of green fuels.

Indeed, if shipping is to reach zero carbon it will need new technology, which will require significant investment, particularly when it comes to fuels and scaling them up. The vast majority of mooted new fuels (such as hydrogen, ammonia or methanol) require new engines alongside an entire new global bunkering supply chain and infrastructure.

Flexible feedstocks and true sustainability

A biofuel’s feedstock, or raw ingredient that is converted into fuel, dictates its commercial viability and its sustainability. Food crops have traditionally been used to create first-generation biofuels. While first gen biofuels have broadly helped to reduce transport GHG emissions over several decades, they possess clear limitations.

Biofuels that use crops either require that food crops are replaced, or that more land is converted into farmland. This raises legitimate questions about their saleability. Increasing first-generation biofuel production to meet projected demand will not be possible without dramatically impacting food security or deforestation.

This is where second-generation or advanced biofuels come in – low carbon fuels from abundant and sustainable waste feedstocks that can meet immediate demand with little or no need for adaptation, and without the risk of destabilising agricultural and forest systems.

So how do we scale advanced biofuels? A typical box ship will have the capacity to take on between 1.5 and 2 million gallons of bunkers. For a second-generation biofuel to be viable in the long term, a feedstock must therefore be available in large enough volumes in the right location to meet fuel demand (although there is also immense value for anything that can be used as a drop-in fuel and introduced gradually).

Hydrotreated Vegetable Oil (HVO) – currently the most available second-generation biofuel on the market – highlights this concern. It is created through expensive hydrocracking or hydrogenation processes with vegetable oil or animal fats, which are not available in high enough quantities to represent a turnkey solution on a global scale.

But there are other existing options, with availability that can be scaled to meet the industry’s demand. This has been our focus at XFuel – to develop second-generation technology that is able to use a wide range of biomass waste as feedstock. This means that we are able to source abundant and sustainable waste from the manufacturing, construction, and agricultural sectors to use as feedstock. This waste can be sourced in virtually any coastal area, and does not threaten food security or contribute to environmental degradation.

A complete replacement

The majority of biofuels available today either cannot be used as a complete replacement for traditional bunkers, or are costly to produce. This represents a major barrier to widespread adoption and commercialisation, and makes it difficult for ports, bunker suppliers, and shipowners to create an effective supply infrastructure.

Moreover, the compatibility issues associated with many current biofuels often mean that traditional infrastructure cannot be used. For example, the corrosive nature of some often means that storage and transfer infrastructure must be replaced or adapted, requiring significant long-term investment.

Yet, it is possible to create a biofuel that can be used as a complete replacement in existing engines and infrastructure at a competitive price to traditional VLSFO or ULSFO marine fuels. XFuel’s low carbon sustainable fuels achieve this, using a highly efficient and non energy-intensive biorefinery method to produce ‘drop in’ products that meet the specifications of a traditional fossil fuel i.e. ISO 8217:2017 for shipping.

This low pressure, low heat process reduces the marginal cost of producing fuels (OPEX), making us price competitive and allowing our projects to have low CAPEX requirements that deliver profitability for small and large projects alike.

Second-generation biofuels can help the shipping sector meet its decarbonisation objectives today, without waiting on new technologies or massive global infrastructure projects. High-quality advanced biofuels allow shipowners, bunker suppliers, and port authorities to take a flexible and practical approach to cutting their emissions, freely blending biofuel and non-biofuel bunkers. It is paramount that the sector starts advancing towards a sustainable second-generation future as soon as possible.

Photo credit: XFuel
Published: 22 September, 2022

Bunker Fuel

China: Zhoushan to host 7th IPEC commodities, bunker conferences on 16 to 17 October

Global marine bunker development will be among main topics of discussion at the 7th International Petroleum and Natural Gas Enterprises Conference (IPEC).

Published

1 day ago

October 11, 2024

Admin

China: Zhoushan to host 7th IPEC commodities, bunker conferences on 16 to 17 October

The 7th International Petroleum and Natural Gas Enterprises Conference (IPEC) is taking place at Zhoushan, Zhejiang province, China between 16 to 17 October.

The agenda, provided by the Zhoushan High-tech Zone Administrative Committee to foreign event media partner Singapore bunkering publication Manifold Times, is as follows:

16 October

Registration and sign-in for participating guests
Meetings between Zhejiang Provincial and Zhoushan Municipal leaders with VIPs

17 October

Morning

Plenary Session of the Conference (Oriental Hall, Zhoushan International Conference Center)

Leader’s speech, guest keynote speech, signing of major projects

Discussion Topics [*17 October, 2pm to 5pm]

Focus Topic Meeting: Global marine bunker development*
Location: Haitian Hall, Haizhongzhou International Hotel, Zhoushan

14:00-14:05 - Opening of the Meeting

14:05-14:15 - Speech by Leaders

14:15-14:30 - Announcement of "Top Ten Global Bunkering Ports" and "Top Ten Global Bunkering Companies"

14:30-14:40 - Announcement of Construction Work of Northeast Asia Bonded Marine Fuel Bunkering Hub

14:40-14:50 – Launch ceremony of Zhoushan "White-list" Bunker Barge Mass Flow Meter System Pilot Certification Programme

14:50-15:10 - Signing Ceremony

15:10-16:10 - Keynote speech

16:10-16:35 - Coffee break

16:35-17:05 - Roundtable forum (Topic: Facing green and low-carbon transformation in global shipping, how do marine fuels change in response to the trend?)

17:05-17:35 - Roundtable forum (Topic: The road to develop high-quality offshore fuel bunkering metering under the new developments)

17:35-17:40 - Moderator’s summary

Utilising financial innovation, futures and spot cooperation to promote the construction of a hub for the allocation of bulk commodity resources*
Location: Putuo Hall, Zhoushan International Conference Center

Open development of global shipping trade*
Location: Donghai Hall, Hilton Zhoushan

International iron ore trade development*
Location: Banquet Hall 1/3, The Westin Zhujiajian Resort, Zhoushan

Development of China's new chemical materials industry during the “15th Five-Year Plan”*
Location: Banquet Hall 1/3, The Westin Zhujiajian Resort, Zhoushan

Development of non-ferrous metal mining industry*
Location: Lianhua Ocean Hall, Hilton Zhoushan

16 and 17 October
International maritime law of the free trade port (zone)
Location: Fortune Hall, Zhoushan CaiFu Hotel

Photo credit: Zhoushan High-tech Zone Administrative Committee
Published: 11 October, 2024

Alternative Fuels

SIBCON 2024: Vitol anticipates securing LNG bunker licence in Singapore

‘It would be unthinkable not to deploy at least one of the three barges Vitol has on order in Singapore,’ says Vitol’s Head of Asia Mike Muller during a panel discussion.

Published

2 days ago

October 11, 2024

Admin

SIBCON 2024: Vitol anticipates securing LNG bunker licence in Singapore

Energy trader Vitol’s Head of Asia Mike Muller on Wednesday (9 October) said the company is anticipating being granted a LNG bunker licence in Singapore soon.

“It would be unthinkable not to deploy at least one of the three barges Vitol has on order in Singapore,” he said.

Mike Muller made the announcement during the Viewing the Energy Transition Through the Lens panel discussion at the 23rd Singapore International Bunkering Conference (SIBCON).

“We expect to see growth in LNG use as a bunker fuel for at least another decade, and probably longer,” he added.

On the increasing uptake of biofuels, he said Vitol is seeing demand for biofuel blended bunkers in Singapore roughly doubling every year at the moment, heading for around 1 million mt this year and maybe 2 million mt next year.

“Demand for 100% biofuel from shipping customers is also starting to pick up as of this year and we have led the way in commissioning new IMO type 2 barges to fulfil this demand - indeed an important Asian customer of ours has taken three deliveries of B100 UCOME biofuel just in recent weeks here in Singapore,” Muller explained.

Manifold Times previously reported Vitol securing three LNG Bunkering Vessels (LNGBV) through its shipping company, Vitol International Shipping Pte Ltd (VIS).

The vessels were secured via a seven to ten year time charter agreement with Avenir LNG Limited (Avenir) and an order for two vessels at the CIMC Sinopacific Offshore & Engineering Co. Ltd shipyard in Nantong, China.

The time charter agreement with Avenir is for one newbuild 20,000m3 LNGBV. The time charter will commence at delivery from the shipyard in China in Q4 2026 and will serve a period of seven years with options to extend up to ten years in total

Vitol also ordered one 12,500 m3 and one 20,000 m3 LNGBV at the CIMC SOE shipyard in China. The vessels will be delivered in Q4 2026 and Q3 2027 respectively.

Photo credit: Vitol
Published: 11 October, 2024

Methanol

Methanol Institute: Expanding global capacity and strategic developments (Week 40, 30 Sep to 6 Oct 2024)

This week was dominated by the outcome of the IMO MEPC which considered proposals for mid-term policy measures capable of driving an energy transition in international shipping down to just three options.

Published

2 days ago

October 11, 2024

Admin

The Methanol Institute, provides an exclusive weekly commentary on developments related to the adoption of methanol as a bunker fuel, including significant related events recorded during the week, for the readers of bunkering publication Manifold Times:

The news agenda this week was dominated by the outcome of the IMO Marine Environment Protection Committee (MEPC) which considered proposals for mid-term policy measures capable of driving an energy transition in international shipping down to just three options, with a likely greenhouse gas (GHG) reduction pathway selected next year.

A majority of IMO member states are now understood to be in favour of a levy on carbon emissions but the lack of urgency remains an issue. Observers recognised that support for such a mechanism should be optimistic based on the meeting’s outcome though no action should be expected before 2025.

Methanol marine fuel related developments for Week 39 of 2024:

CPG Bunkering Expands Mozambique Operations with New Tanker and Capacity Upgrade

Date: September 30, 2024

Key Points:

CPG Bunkering has expanded its capacity at the Port of Maputo in Mozambique by adding a new delivery vessel, the CPG Alma, under an extended agreement with the Maputo Port Development Company. The expansion allows for reliable at-berth supplies and more efficient service for increased bunker-only calls. Additionally, the company will evaluate the potential supply of alternative bunker fuels, such as biofuels, LNG, methanol, and ammonia, during the extension period to support future green fuel adoption.

ESL Shipping Emphasizes Urgency for New Fuels to Meet Decarbonization Goals

Date: October 1, 2024

Key Points:

ESL Shipping’s Managing Director, Matti-Mikael Koskinen, highlighted the urgent need for new fuel options to meet decarbonization targets, as discussed at the IMO MEPC82 meeting. ESL is committed to achieving net-zero emissions by 2040 and is exploring a range of alternative fuels including LNG, bio-gas, and methanol. The company’s approach varies based on vessel types and operational conditions, particularly in challenging ice-class routes off Finland. Koskinen stressed the importance of overcoming fuel availability and cost barriers to successfully transition to greener shipping solutions.

Vioneo to Use Green Methanol for Sustainable Plastics Production

Date: October 2, 2024

Key Points:

Vioneo, a new sister company to Maersk under AP Moller Holding, is set to produce sustainable chemicals and plastics using green methanol as a feedstock. The company will construct a 300,000 mt/year plant in Antwerp to manufacture polypropylene and polyethylene. This project marks a strategic expansion beyond methanol's use as a bunker fuel, leveraging green methanol for large-scale, fossil-free production of essential materials, reflecting Maersk's broader commitment to sustainability and innovation.

193 Alternative Fuel Ship Orders Placed in Q3, Led by LNG and Methanol

Date: October 3, 2024

Key Points:

According to the Ship & Bunker News Team, 193 new vessel orders including alternative propulsion were registered in the third quarter of 2024, with a majority focused on LNG and methanol. The container segment accounted for most of the orders, including 86 LNG-fueled and 39 methanol-fueled vessels. This growth, driven by the container and car carrier segments, highlights the industry's continued investment in alternative fuels to meet environmental regulations and future-proof fleet operations.

Peninsula to Boost Methanol Bunkering with Three New Tanker Charters from HTM

Date: October 4, 2024

Key Points:

Peninsula has entered into an agreement with Hercules Tanker Management (HTM) to charter three newly ordered 7,700 DWT methanol-capable chemical tankers, currently being built at the Jiangmen Hangtong Shipyard in China. The vessels, set for delivery in Q2 2025, will support the company's strategy to expand its alternative fuel bunkering services. This partnership enhances Peninsula’s capability to deliver biofuel blends and methanol, ensuring readiness for future green fuel demand.

IMO MEPC 82: DNV Highlights Progress on Net-Zero Framework Negotiations and Emission Control Areas

Date: October 7, 2024

Key Points:

The 82nd session of the IMO Marine Environment Protection Committee (MEPC 82) focused on advancing the development of a net-zero framework for the maritime industry. Delegates discussed strategies to achieve net-zero GHG emissions by 2050, including establishing a GHG fuel intensity standard, which would set clear emission reduction targets for vessels. The committee also considered a new GHG pricing mechanism to incentivize low-carbon fuel adoption.

Additionally, amendments to MARPOL Annex VI were adopted, designating new Emission Control Areas (ECAs) in the Norwegian Sea and Canadian Arctic, which will implement stricter emission regulations starting in 2026-2027. The session also addressed technical and operational measures to improve energy efficiency, reflecting the IMO's commitment to enhancing sustainability in shipping operations globally. DNV emphasized that while progress has been made, negotiations will continue to refine and finalize the proposed net-zero framework in upcoming sessions.

For more details, visit the full article here.

Photo credit: Methanol Institute
Published: 11 October, 2024