The Week in Alt Fuels: Balancing global and regional regs
CII faces scrutiny for flawed metrics
US lawmakers seek to regulate shipping emissions
PHOTO: Getty Images
Regulatory support at both global and regional levels will be crucial for decarbonising the shipping sector.
The International Maritime Organisation's (IMO) global Carbon Intensity Indicator (CII) regulation assesses how efficiently a ship transports goods or passengers, and penalises vessels with high carbon intensity.
CII is expressed in grams of carbon dioxide (CO2) emitted per metric tonne of cargo per nautical mile. Ships are rated annually from A to E (where A is the least carbon-intensive). E-rated ships must submit a corrective action plan to achieve a C or above. The rating criteria will become stricter by 2030.
But the regulation has faced criticism from several industry trade bodies, which have pointed out potential flaws in the CII metric.
A study by the Royal Belgian Shipowners' Association and the University of Antwerp found that the current CII formula favours ships that sail longer distances, “potentially rewarding higher fuel consumption.” The study highlighted that factors such as waiting time, the number of ports of call and distance travelled adversely impact CII ratings. Even when some of them are beyond a ship’s control. Neither does the formula account for unexpected delays in ports due to congestion, inefficiencies or other logistical challenges.
A similar argument was presented by BIMCO and other shipping organisations in their proposal to the IMO's upcoming Marine Environment Protection Committee (MEPC). They noted that the current CII metric penalises efficiently operated ships carrying cargo and favours empty vessels. It also highlights that ships are penalised for prolonged stays in ports, even when the duration of port calls is beyond their control.
On a regional level, some US Congress members have urged President Joe Biden to create a "goal-based fuel standard" for ships calling at US ports. They have not said exactly what they mean by that, but according to the IMO, a goal-based marine fuel standard is a technical measure that sets specific targets for gradually reducing the GHG intensity of marine fuels used on ships. The Congress members also asked Biden to mandate a phase-out and eventual ban of scrubbers in the US.
Among other stories this week, ships with four-stroke engines can be retrofitted to dual-fuel and consume methanol. German engine maker MAN Energy Solutions will convert the first vessel next year.
NYK Line and TB Global Technologies have developed a bunkering boom for ammonia. The boom has been approved by Japanese classification society ClassNK. A bunkering boom is a device on a ship used to transfer marine fuel from one vessel to another, typically extending outward to facilitate safe and efficient fuel transfer.
NYK Line is also among three bunker suppliers that has been shortlisted to develop ammonia bunkering in Singapore. The others are ITOCHU and Sumitomo. The Energy Market Authority (EMA) and Singapore's port authority will select one of these companies to deliver at least 100,000 mt/year of ammonia for bunkering at Jurong Island. The initial deliveries will be carried out by trucks, followed by ship-to-ship bunkering.
By Konica Bhatt
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