The Week in Alternative Fuels

Here are some of the key developments in alternative bunker fuels from the past week.

PHOTO: Model of GCS's ammonia-powered vessel design. ClassNK

Japanese classification society ClassNK approved the design of an ammonia-fuelled bulk carrier that could pave the way for shipyards to build future vessels of the kind.

Methanol was again hailed as a promising shipping decarbonisation fuel by the American Bureau of Shipping. The Houston-based classification society has teamed up with a shipowner and a vessel designer to develop an 85,000 dwt bulker fuelled with methanol.

Investment firm MPC Capital put in an order for four container ships to be run on green methanol, expecting to take delivery of the first one next year.

Bio-bunker supply capacity was bolstered on the UK’s Thames River with new storage tanks.

A first container ship was bunkered with LNG in Marseille-Fos, and TotalEnergies says LNG will play a prominent role in the alternative fuels space this decade.

Here are the top five stories in alternative fuels this week:

Ammonia-fuelled bulk carrier design gets ClassNK approval

While ammonia is a fuel that can possibly lead to decarbonisation of the shipping industry, it still poses safety concerns due to its traits of being toxic to humans and corrosive nature, says ClassNK.  

Tokyo-based ship classification society, ClassNK issued an Approval of Principle (AiP) for the design of an ammonia-powered Panamax bulk carrier.

The vessel design was developed by the Planning and Design Center for Greener Ships (GSC) and was granted approval review after review of safety parameters and possible hazards.

In August last year, ClassNK published “Guidelines for Ships Using Alternative Fuels” which focuses on minimising hazardous risk related to ammonia-powered vessels. The classification society has urged the industry to develop international standards for the use of ammonia in ships.

GSC says its shipbuilders in Japan are likely to use the approved design when building ammonia-powered bulk carriers.

MPC Capital locks in methanol-ready container ship orders

Hamburg-based investment management firm MPC Capital, together with its affiliates, has ordered four green methanal-ready container ships.

The vessels have a capacity of 5,500 TEU and will be constructed by South Korean shipyard Hanjin Heavy Industries and Construction Group (HHIC).

They will be built to be compliant with the EEDI-Phase 3 and NOx Tier III standards, says MPC. The first vessel is expected to be delivered by second quarter of 2023.

MPC’s methanol-fuelled vessel order is one in only a few for the alternative bunker fuel so far, with another major one being Maersk.

Maersk has been hoarding up orders for methanol-powered vessels recently and plans to bring 13 vessels into operation by 2025.

Trio designs methanol-powered bulker to green fleet

A methanol powered 85,000 dwt bulker has been jointly designed by shipping classification society American Bureau of Shipping (ABS), shipowner SDTR Marine and vessel designer Shanghai Merchant Ship Design & Research Institute (SDARI).

“Methanol is a fuel which has genuine potential to contribute to shipping’s decarbonization goals,” says Pier Carazzai, vice president of ABS Pacific regional business development.

Singapore-based SDTR is looking to upgrade its Kamsarmax fleet with more energy efficient and greener vessels to curb its carbon emissions. Its chief executive Gao Dehui says the new bulker design and cooperation with SDARI and ABS is an important step in that direction.

The vessel design is based on the SDARI’s 85,000 dwt bulk carrier design which has already clocked orders of 37 ships. Design has been evaluated in various operational scenarios including under the European Union Emissions Trading System (Fuel EU, ETS), says ABS.

Port of London Authority installs biofuel storage to curb vessel emissions

Port of London Authority (PLA) installs two tanks to store 20,000 litres of pollution-busting hydrotreated vegetable oil (HVO).

These tanks are located in Gravesend on the Thames, while two more are due to be installed at Barrier Gardens Pier in Woolwich after refurbishment works have been completed.

Thames Marine Services (TMSL) has been appointed as the PLA’s HVO supplier. The company has invested to modify its barges to carry biofuel and says it can supply several different vessel types, including passenger ferries, container ships and navy ships.

PLA aims to achieve net zero carbon emissions by 2040 and has set an interim target of halving carbon emissions by 2025 compared to 2014 levels, when it emitted about 2,000 mt of carbon dioxide. It plans to adopt biofuel across its entire fleet, which contributes to 75% of the PLA’s total carbon emission.

Marseille-Fos port scales LNG bunkering and plans green hydrogen units

France’s Marseille-Fos has recorded its first LNG bunkering of a container ship, and the port also plans to build six hydrogen production units.

TotalEnergies’ second chartered LNG bunker barge, Gas Vitality, delivered 6,000 cbm of LNG to CMA CGM's 15,000 TEU container ship CMA CGM Bali in Marseilles-Fos.

The LNG was transferred from the Fos Cavaou LNG terminal by the barge.

TotalEnergies took the delivery of the Gas Vitality barge in December and intends to operate in the Marseille basin.

Separately, Marseille-Fos has announced it will invest €750 million ($850 million) in a green hydrogen production plant. Six hydrogen units will be built between 2026 and 2031 and generate a combined 600 MW.

TotalEnergies sees LNG as the best alternative bunker fuel bet for this decade

Oil and gas firm TotalEnergies forecasts a massive increase in LNG bunkering this decade, with volumes hitting 10 million mt by 2025 and making up 10% of the market by 2030.

The company has invested heavily in LNG bunkering over the past few years. In November 2020 it launched its first chartered LNG bunker vessel. The 18,600 cbm-capacity Gas Agility supplies in Rotterdam.

This year, the Gas Agility will be joined by a second LNG bunker vessel, Gas Vitality, which will supply in Marseille-Fos.

After obtaining a licence to supply LNG in Singapore in February last year, TotalEnergies will also share a third, 12,000 cbm-capacity LNG bunker vessel with Pavilion Energy to ramp up its oparations there.

After establishing a foothold in the ARA, Mediterranean and Singapore, the company has set its sights on creating an LNG hub in Oman as part of ongoing investments in the Middle East.  

TotalEnergies is also exploring opportunities in lower-carbon bio-LNG via its Biogas unit. It plans to produce 1,500 GWh of biogas per year by 2025, and quadruple this to 6,000 GWh by 2030. It is also exploring blending of green hydrogen with LNG.

One of the biggest drivers of greener LNG blends is consumer demand for green fuel certifications such as Guarantees of Origin (GO), which is established, the company says.