The Week in Alternative Fuels
Here are some key developments in alternative bunker fuels from the past week.
PHOTO: 3D model of an LNG carrier. Getty Images
A growing number of global organisations, such as the International Energy Agency (IEA) and the International Maritime Organisation (IMO), are advocating for scaling up green fuels production. This comes after prominent voices in the maritime industry have repeatedly called for upgrades to bunkering infrastructure so that it can handle alternative fuels.
And following last week's announcements about increasing green fuel outputs, this week saw announcements related to building out bunkering infrastructure and supply chain logistics for alternative fuels.
A new nation has entered the race to produce green hydrogen. South Africa has has committed to producing five million mt/year of green hydrogen by 2040 and a further 10 million mt/year by 2050.
NYK Line and Mitsui O.S.K. Lines have teamed up with Tokyo-based power company JERA to develop large carriers for transporting ammonia. Those carriers will operate on ammonia and create an ammonia supply chain for JERA’s Hekinan Thermal Power Plant.
Brazilian trading company Nimofast Brasil has partnered with Norwegian shipping company Kanfer Shipping to launch LNG bunkering in Brazil from 2025. The company will sell and deliver LNG stems through small- and medium-scale LNG delivery vessels along the coastline of Brazil.
Classification society Korean Register and South Korea’s Ulsan Port Authority have shared plans to test and develop methanol bunkering in the port of Ulsan, with methanol stored in onshore tank terminals.
And US-based hydrogen producer Air Products and Mabanaft’s logistics arm Oiltanking Deutschland announced it will build Germany’s first green ammonia import terminal in the port of Hamburg. Germany will import green ammonia from global players and convert it into green hydrogen at Air Products' facilities. It will then distribute the green hydrogen to local buyers from 2026.
By Konica Bhatt
Here is our selection of five top alternative fuels stories from this week:
MOL and NYK to develop large ammonia carriers
Japanese shipping companies Nippon Yusen Kabushiki Kaisha (NYK Line) and Mitsui O.S.K. Lines (MOL) have collaborated with Tokyo-based power firm JERA to explore and develop large carriers to transport ammonia.
They aim to build large ammonia carriers that can also run on ammonia, and create an ammonia supply chain for JERA’s Hekinan Thermal Power Plant.
The need for larger vessels to ship ammonia is set to increase rapidly with rising demand over the coming decades. Greater economies of scale can in this way help bring down costs and in turn, help spur further adoption of ammonia as a fuel.
A new report commissioned by the International Chamber of Shipping (ICS) found that around 20 large ammonia carriers need to enter the global fleet every year to link green hydrogen producers with consumers.
Hydrogen is one of the two key inputs in ammonia production, along with nitrogen.
Ammonia can act as a hydrogen carrier that is easier to store and ship, and can be converted back into hydrogen after a voyage.
South Africa joins race to become green hydrogen hub – Reuters
South Africa committed to producing five million mt/year of green hydrogen by 2040, at the COP27 climate conference in Egypt.
According to reports by Reuters, South Africa aims to boost its green hydrogen production capacity further to 10 million mt/year by 2050 and create a $20 billion local hydrogen market.
Moreover, a report by the Africa Green Hydrogen Alliance (AGHA) and McKinsey predicts a sevenfold increase in global demand for green hydrogen by 2050, and states that African nations will be well-positioned to benefit from it.
According to the study, if AGHA members (Egypt, Kenya, Mauritania, Morocco, Namibia, and South Africa) are able to develop low-cost hydrogen production and transportation systems, green hydrogen exports could reach 20-40 million mt by 2050.
The International Maritime Organisation (IMO) recently highlighted Namibia's efforts to accelerate the production of green hydrogen as a bunker fuel during COP27. And the World Bank pledged financial assistance to Namibia to help develop its green hydrogen infrastructure.
A number of other nations have also set their sights on becoming global hydrogen hubs. Panama has set an ambitious goal of producing 500,000 mt/year of green hydrogen by 2030 and approximately 4 million mt/year by 2040. Oman targets 1 million mt of green hydrogen production by 2030.
Nimofast Brasil and Kanfer Shipping to launch LNG bunkering in Brazil
Brazilian trading company Nimofast Brasil has partnered with Norwegian shipping company Kanfer Shipping to sell and deliver LNG stems along the Brazilian coastline from 2025.
The agreement will allow Nimofast Brasil to offer any volume of LNG to customers through small- and medium-scale LNG delivery vessels along the coastline of Brazil.
The vessels will be loaded with LNG at the permanently based floating storage unit (FSU) at the Nimofast LNG import and distribution terminal in the Brazilian state of Paraná.
Kanfer Shipping’s chief executive Stig Hagen said that they intend “to improve both the availability and accessibility of LNG for the customers in Brazil.”
Meanwhile, Nimofast Brasil president Ramon Reis views “LNG bunkering as a growth market".
Classification society DNV’s data shows that the number of LNG-powered vessels in operation or on order has gone up by 143 since last year, to 389 this year.
This number is projected to more than double in the next few years. A total of 855 LNG-powered vessels are on order for deliveries towards 2028.
Korean Register and Ulsan Port will develop methanol bunkering
Classification society Korean Register and South Korea’s Ulsan Port Authority will test methanol bunkering in Ulsan port. Ulsan tank terminals will serve as methanol storage facilities.
South Korea’s first methanol bunker stems were delivered in Ulsan in August. Two stems of more than 2,000 mt were delivered to two vessels by Proman Stena Bulk, a joint venture between methanol producer Proman and shipping company Stena Bulk.
Anita Gajadhar, managing director of marketing and logistics at Proman Shipping stated, “Incorporating methanol bunkering into future fuel infrastructure regulations and policies that are currently being developed will help ensure guidelines are futureproofed as more low-carbon and renewable methanol sources come online, supporting the transition to lower emissions fuels across the industry.”
Hamburg will be home to Germany's first green ammonia import terminal
Hamburg Port Authority's chief executive Jens Meier says green ammonia imports will help drive maritime decarbonisation.
The terminal will be built by Air Products, a hydrogen producer based out of the US, and Oiltanking Deutschland, the logistics arm of German energy company Mabanaft.
Germany will import green ammonia from global players and convert it into green hydrogen at Air Products' facilities. It will distribute the green hydrogen to local buyers from 2026.
Dutch terminal company Vopak plans to convert two existing LPG storage tanks worth 55,000-cbm each into green ammonia storage. This will later be connected to the northwest European hydrogen network and supply the Netherlands, Belgium, and Germany.
Other companies like Norwegian Yara International and Azane Fuel Solutions are also developing green ammonia networks for shipping in northwest Europe.
In the near future, the South Korean chemical company OCI plans to expand its green ammonia import terminal in Rotterdam. This will enable it to import up to 1.2 million mt/year of green ammonia. A terminal is being built at Onahama port, on Japan's northeast coast, in order to address the potential for large-scale imports of fuel-use ammonia for power generation.
