The Week in Alternative Fuels
Here are some of the key developments in alternative bunker fuels from the past week.
PHOTO: Model of Mitsubishi's Pyxis Ocean with Yara Marine's WindWings system. Yara Marine
After many hurdles European Parliament members this week finally voted in favour of Emission Trading System (EU ETS) that includes an extension to cover shipping. The EU ETS hit a roadblock earlier this month when majority of MEPs surprisingly rejected EU ETS reform, but later political parties announced that a consensus has been achieved and the proposal will be tabled for a second vote.
As regulations tighten to curb emissions from shipping, many ports are evaluating infrastructure needed to bunker low emission fuels through pilot runs. This week Global Centre for Maritime Decarbonisation (GCMD) announced at a conference organised by DNV that they are in advance stages to devise ammonia bunkering safety standards in Singapore and two sites have been identified as ideal for ammonia bunkering in Singapore.
Though bunker infrastructure is being developed to meet the future demand of ammonia-fuelled fleet, investments in ammonia bunker barges are not keeping pace with the growth. This week the American Bureau of Shipping (ABS) granted approval in principle to a 33,000 cbm capacity ammonia bunker vessel being developed by Keppel Offshore & Marine (Keppel O&M) to supply vessels in Singapore.
Hydrogen derivatives such as ammonia and methanol are considered to play key role in decarbonisation of shipping industry. This week Proman Stena Bulk announced that it has taken delivery of first methanol powered tanker named Stena Pro Patria. Proman Stena says the vessel will bunker 12,500 mt/year of methanol and will be joined by another two-methanol powered vessel by end of this year.
Hybrid technology is expected to play an important to curb emissions in shipping and can complement low-emission fuels. However, the major concern has been the battery capacity that subsequently affects the range of the vessels. Wärtsilä and Stena RoRo have recently announced that they are developing ferries which will have a battery capacity of 11.5MWh, making them the world’s largest hybrid vessels by battery capacity so far. The ferries are expected to be delivered by 2024 and 2025.
As shipowners and operators look for solutions to optimise energy efficiency in their existing vessels. Norwegian marine technology firm Yara Marine announced it will install wind propulsion system on Japanese conglomerate Mitsubishi Corporation’s bulk carrier. Yara Marine claims its system can reduce a ship's fuel consumption and carbon dioxide emissions by up to 30%. The system combines dynamic multi-element wings with route optimisation to harness wind power.
Biofuel has emerged as a relevant interim solution to curb emissions without any modification to engines or sub-systems. Finnish refiner Neste announced it will supply its new bio-bunker fuel to ESL Shipping’s dry bulk vessels in Finland and Sweden.
A first of its kind, Samskip and Houston-based marine robotics specialist Ocean Infinity have partnered to develop two 500 TEU remotely controlled hydrogen-powered container ships called SeaShuttle, each powered by 3.2MW hydrogen cells.
A joint taskforce has been established that constitutes of corporate heads and government representative to accelerate the development of Clean Energy Marine Hubs and coordinate efforts towards decarbonisation of the shipping industry.
Chemical company LG Chem plans to build a hydrogen plant in South Korea’s Daesan that would produce 50,000 mt/year of hydrogen by 2024. The new plant will implement technology that converts methane to hydrogen through a chemical reaction under high-temperature steam.
Carbon capture technology has recently attracted attention from shipping players. The American Bureau of Shipping (ABS) and Texas A&M University at Qatar (TAMUQ) will jointly study carbon capture technology at sea and develop a model for carbon dioxide capture on an LNG vessel.
A coalition of shipping companies, energy suppliers and NGOs has called on the European Parliament and European Council to introduce a 6% minimum e-fuel mandate for ships by 2030. The group has also asked to fix targets for the deployment of sustainable hydrogen and hydrogen-based fuels refuelling points in European ports.
Here are the top five stories in alternative fuels this week:
European Parliament votes to expand EU ETS to cover shipping
The European Parliament voted in favour of an Emissions Trading System (EU ETS) reform that includes an extension to cover shipping.
A major turnaround of the events transpired today as EU ETS was approved by a thumping majority of 439 MEPs votes in favour, and 157 votes against, as well as 32 abstentions.
Earlier this month, the EU ETS proposal was surprisingly rejected by majority European Parliament members when it was first tabled for vote.
“Today is a big day for the climate. We will reduce four times more greenhouse gas (GHG) emissions per year than we did from 1990 until today," said European People’s Party (EPP) lawmaker Pieter Liese who was the rapporteur of the ETS proposal.
With EU ETS extended to shipping, revenues generated through emissions trading will be made available to the shipping industry for investing in low emission vessels and scale-up required infrastructure in ports, adds Liese.
“This marks a historic day for European climate policy. Expanding the EU’s flagship cap and trade scheme ensures that more of Europe’s polluters are made to pay,” said climate manager Sofie Defour of Transport & Environment, an environmental NGO.
All vessels above 400 gross tonnage, and offshore vessels that operate around offshore oil and gas facilities, are included in EU ETS, says T&E.
The breakthrough follows a vote by the European Parliament's Committee on Environment last month that went in favour of more extensive emissions regulations agenda that would include shipping.
The proposal approved by the committee would extend to cover ETS on all ship emissions from intra-European voyages by 2024. Half of the emissions from voyages to and from EU countries would be included between 2024-2026, before expanding to 100% from 2027.
Following approval from the Environment Committee, the proposal needed a green light from European Parliament members. With EU ETS now approved by the European Parliament, the proposal will now be negotiated between EU member states.
ENGINE: Samskip and Ocean Infinity to develop remotely controlled hydrogen containership
Dutch logistic firm Samskip has secured NOK 150 million ($15.80 million) partial funding from Norwegian state enterprise ENOVA to build hydrogen powered containership with remotely operational capability.
Samskip and Houston based marine robotics specialist Ocean Infinity have partnered together to develop two 500 TEUs remotely controlled hydrogen-powered containership- SeaShuttle, with each powered by 3.2MW hydrogen cell.
The vessels are expected operate between Norway’s Oslo and Netherlands’ Rotterdam and will primarily run on hydrogen with a diesel electric propulsion plant as back up.
Samskip aims to deploy the two vessels by 2025.
“In line with commitments given at COP26 Clydebank Declaration, SeaShuttle would create what amounted to one of Europe’s first zero-emission ‘green corridors,” Samskip Norway’s chief Are Gråthen said.
Ammonia bunkering study in Singapore could become blueprint for others - DNV
Pilot test runs of ammonia bunkering in Singapore could determine technical standards and safety procedures that can be used as reference points for other ports, DNV says.
Representatives from classification society DNV and the Global Centre for Maritime Decarbonisation (GCMD) said collaborative efforts is needed to lift demand for low-carbon fuels.
Boosting infrastructure, financing and availability of low-carbon fuels are key challenges to decarbonising the shipping industry, they told a conference organised by the DNV today.
GCMD is conducting a feasibility study to devise ammonia bunkering safety standards in Singapore.
GCMD’s chief executive Lynn Loo said the project is in the advanced stages and two sites in Singapore have been identified as ideal for ammonia bunkering. Lessons on handling ammonia will be shared with the maritime industry by early next year.
Loo insisted that LNG, either on its own or combined with biofuels as drop-in fuels, will play an important near-term role.
Developing ammonia bunkering in Singapore can be a complex undertaking, considering the port’s proximity to urban areas. If ammonia bunkering can be performed safely in Singapore, it can easily be replicated elsewhere, argued DNV’s Pacific & India regional manager Cristina Saenz de Santa Maria.
To incentivise uptake of ammonia and other fuels with low- and zero-carbon potential, Maria believes an internationally regulated and transparent carbon levy system is the way to go, rather than domestic ones.
Chevron’s Singapore country manager Tat Win Law said the oil major is committed to play key role in these pilot programmes, arguing that partnerships are vital to decarbonise the maritime sector. Policies, partnerships and pilot runs are needed to accelerate decarbonisation in shipping industry, he added.
MISC Group’s chief executive Datuk Yee Yang Chien said it is planning to operate an ammonia-powered tanker by 2025-2026. He thinks that investment and risks must be taken by shipowners, suppliers, engine manufacturers and customers to support uptake of low-carbon fuels.
Datuk says Singapore can make use of its position as a financial hub to attract investments in low-carbon fuels by involving banks.
Last month, the Maritime and Port Authority of Singapore joined a consortium that plans to develop a supply chain and bunkering infrastructure for ammonia in Singapore.
In an initial analysis, the consortium found that ammonia can be sourced from large production facilities under development in Australia.
ABS approves ammonia bunker vessel
The American Bureau of Shipping (ABS) has given an approval in principle to a 33,000 cbm-capacity ammonia bunker vessel being developed by Keppel Offshore & Marine (Keppel O&M) to supply vessels in Singapore.
Demand for ammonia is expected to rise over the coming decades as ammonia-fuelled ships enter the global fleet. But there is a lack of bunker infrastructure that could enable these ships to fill up their tanks when moving across regions.
In addition to supplying other vessels with ammonia, Keppel O&M's bunker vessel will also be fuelled by ammonia. It is being developed as part of Project Sabre, which has backing from a consortium of shipping companies and the Maritime & Port Authority of Singapore. They have set out to develop an ammonia bunker supply chain in Singapore.
The consortium includes A.P. Moller – Maersk, Fleet Management Limited, the Maersk Mc-Kinney Møller Center for Zero Carbon Shipping, Japanese trading company Sumitomo Corporation and Japanese shipping firm Kawasaki Kisen Kaisha (K Line).
The group conducted a feasibility study for setting up an end-to-end ammonia bunker supply chain in Singapore last year.
ABS' global sustainability director Panos Koutsourakis says ammonia has great potential as a future fuel for shipowners, operators and ports. The shipping classification society is working with Project Sabre and other partners to understand operational and safety considerations for ammonia-fuelled vessels.
Proman Stena Bulk takes delivery of first methanol-powered tanker
Proman Stena Bulk claims that methanol is readily available to bunker in over 100 global ports, including major bunkering hubs.
Proman Stena Bulk expects the 49,990 dwt tanker vessel Stena Pro Patria to bunker 12,500 mt/year of methanol.
Stena Pro Patria is the first out of six dual-fuel tanker vessels Proman Stena Bulk has under construction at China's Guangzhou Shipyard International (GSI). It will be joined by the Stena Pro Marine and Stena Promise later this year.
Proman Stena Bulk is a joint venture between Swiss methanol producer Proman and Swedish shipping company Stena Bulk.
The induction of the vessel highlights the importance of methanol as a marine fuel that is reliable, and also available, to curb global emissions in the near- or long-term, Proman’s chief executive David Cassidy said.
He thinks the new vessel will boost confidence among other shipping companies to switch to cleaner fuels such as methanol, and subsequently send a strong demand signal to the market.
Stena Pro Patria is expected to leave South Korea’s GSI Shipyard in Ulsan filled up with methanol in fuel tanks, and will arrive in Trinidad and Tobago for a naming ceremony later this year.
A recent study by DNV argued that hydrogen derivatives such as ammonia and methanol will play major roles in decarbonising shipping.
Earlier this year, Maersk announced agreements with six methanol suppliers to source at least 730,000 mt/year by the end of 2025, which it claims is sufficient to power the 12 methanol-fuelled container vessels that it currently has on order.
Wärtsilä and Stena RoRo to develop world's largest hybrid battery-LNG vessels
Marine fuel tech firm Wärtsilä says two of the three ferries it is developing will have a battery capacity of 11.5 MWh, making them the world’s largest hybrid vessel by battery capacity so far.
Wärtsilä is developing a hybrid propulsion system for three RoPax vessels build for Swedish ferry firm Stena RoRo.
The batteries will be lightweight and smaller in size than batteries currently used in other hybrid vessels, but have almost twice the battery capacity, claims Wärtsilä.
Stena RoRo and Brittany Ferries have jointly designed the vessels, which will be long-term chartered to Brittany Ferries.
The hybrid vessels will run on LNG and can operate partially or fully on battery. They will run between the UK’s Portsmouth and the French ports of St. Malo and Caen.
Their greenhouse gas (GHG) emissions can be further reduced by up to 15% by connecting them to shore power, says Wärtsilä.
Portsmouth International Port plans to install onshore power supply for Brittany Ferries, and is working to scale its electricity supply network as it needs to be ready before Brittany Ferries' takes delivery of two new hybrid vessels.
The ferries are currently being built at China’s Jinling (Weihai) Shipyard, with expected deliveries between 2024 and 2025.
