The Week in Alternative Fuels
Here are some of the key developments in alternative bunker fuels from the past week.
PHOTO: Avenir's LNG bunker vessel Avenir Achievement. Avenir LNG
Ocean Network Express (ONE) orders 10 ammonia-and methanol- ready vessels and plans to deploy them by 2025.
Auramarine develops methanol fuel system that can be installed in two or four-stroke engines and is suitable for dual-fuelled methanol-compatible engines.
Avenir LNG inducts a 20,000 cbm dual-purpose LNG bunker vessel, the ‘largest in the world’.
Shipping classification society DNV data shows that 30 LNG newbuilds orders were placed in May.
A joint report by IRENA and AEA suggests that ammonia usage in shipping is expected to grow multi-folds by 2050.
Svitzer plans to increase the uptake of low carbon fuels, particularly methanol and biofuel to achieve its carbon-neutral target by 2040.
ADNOC puts order for three LNG vessels and plans to deploy them by 2026.
Here are the top five stories in alternative fuels this week:
ONE puts in order for 10 ammonia- and methanol-ready vessels
The vessels will be ammonia- and methanol-ready and equipped with systems to capture and store carbon when they run on carbon-based fuels. The 10 orders are equally distributed between Japanese shipyards Hyundai Heavy Industries and Nihon Shipyard.
The company estimates that over half of its $20 billion investment towards 2030 will be spent on upgrading its fleet in line with its mid-term decarbonisation strategy of reducing Scope 1 greenhouse gas emissions by 70% by 2030.
The 10 vessels will be used by ONE to tests ammonia methanol as fuels with zero-emission potential, as well as carbon capture and storage systems to curb emissions when not running on these fuels, before it makes investment decisions towards its net-zero by 2050 goal, which covers 2 and 3 emissions in addition to Scope 1.
ONE aims to induct all 13,700 TEU vessels by 2025.
Auramarine develops methanol fuel system for dual-fuelled engines
Finnish fuel system provider Auramarine has developed a methanol fuel supply system that can ensure the safe delivery of methanol from tanks to master fuel valves. The fuel system can regulate the flow, pressure and temperature of methanol to meet specific requirements of the engine, Auramarine says.
The fuel system can be installed on newbuilds or retrofitted where existing tanks can be modified to store methanol.
Auramarine claims the fuel system has already gathered commercial interest from different stakeholders including shipowners and operators and expects the first roll-out by next year.
Avenir inducts 'world's largest' LNG bunker vessel
UK headquartered LNG supplier Avenir LNG’s 20,000 cbm-capacity vessel was built by China’s Nantong CIMC Sinopacific Offshore & Engineering.
Avenir Achievement can be operated as an LNG carrier or bunkering vessel and is the world’s largest LNG bunkering vessel, claims Avenir LNG.
The company operates a total of six LNG vessel including the newly inducted Avenir Achievement.
The vessel will initially be chartered to US-based energy company New Fortress Energy for six months, and then to Shell for three years from the first quarter of next year with an option for another five years.
“We continue to see enormous growth potential in the small-scale LNG segment, and we expect to announce our phase-2 growth programme in the second half of 2022, bringing additional small-scale LNG terminals and vessels into the market,” said Avenir LNG’s chief Peter Mackey.
30 new LNG-powered vessels ordered in May – DNV
The latest data from shipping classification society DNV shows that 30 new LNG-powered vessels have been ordered in May compared to 51 in April.
The new build orders largely comprise containerships followed by car carriers, crude oil and chemical tankers.
Even though LNG-powered vessels are already in operations across continents, the majority are operating in Europe, with 161 of 295 vessels, including 61 just in Norway.
DNV data suggests that scrubber orders keep on rising in a boost to HSFO380 demand. 4,727 ships are expected to be fitted with scrubbers or have put in orders for scrubbers by the end of this year, up by 177 from last year.
Scrubber new orders are mostly from bulk carriers, containerships, crude oil and chemical tankers.
IRENA and AEA report suggest ammonia bunker demand to surge by 2050
A joint report by International Renewable Energy Agency (IRENA) and the Ammonia Energy Association (AEA) suggest ammonia bunker demand is expected to surge by 2050 amid restrictions to cut greenhouse gas emissions.
The duo estimate marine fuel demand of ammonia could reach 197 million mt by 2050. Though total ammonia production is around 183 million MT, less than 1% is used for international shipping, report says.
Asia accounts for more than half of global ammonia production capacity but are largely consumed for agricultural related activities.
