The Week in Alternative Fuels
Here are some of the key developments in alternative bunker fuels from the past week.
PHOTO: B100 biodiesel stem being delivered to NYK's vessel. NYK Line
Biofuels hit the headlines several times this week. Until quite recently, biofuels have more widely been tested as a potential drop-in fuel to reduce some shipping emissions.
The market is mostly familiar with biofuel products such as B20, B30 and B50. These consist of 20-50% biofuel blended with either VLSFO or MGO. Though these biofuels are available in several major hubs, they still curb carbon emission by only 25-40%.
This week, Dutch biofuel supplier GoodFuels announced that a bulk carrier owned by Spar Shipping has successfully trialled 100% biofuel (B100) on a voyage between the Netherlands and Turkey. An initial assessment of the trial showed a carbon dioxide emission reduction of at least 75% over the entire voyage.
Several shipping firms have shown interest in biofuels as it requires little to no engine modifications. Japan’s NYK Line said it will conduct trial runs of B100 biodiesel supplied by Finnish refiner Neste, which claims it can curb carbon dioxide emissions by up to 90% on a well-to-wake basis.
To boost global biofuel supply chains, Global Centre for Maritime Decarbonisation (GCMD) and 18 industry players have launched a pilot project involving 12 vessels that will bunker B30 in bunker hubs such as Singapore, Rotterdam and Houston. Through this project they aim to evaluate biofuel as a bunker fuel and possibly build supply networks over the next 12-18 months.
Here are the top five stories in alternative fuels this week:
Spar Shipping completes 100% biofuel trial from the Netherlands to Turkey
The B100, or 100% biofuel, stem was delivered by Dutch biofuel supplier GoodFuels to a bulk carrier owned by Norwegian shipping firm Spar Shipping.
The vessel, Spar Lynx, was bunkered with GoodFuels’ 100% biofuel in the Dutch port of Dordrecht, before sailing to Turkey’s Icdas.
GoodFuels said the vessel's engine performed without issues over the entire voyage and that the biofuel can reduce carbon by at least 75% on a well-to-wake basis. It said the vessel's engine and existing fuel tanks were compatible with B100 without any modifications needed.
The biofuel is derived from waste or residue feedstocks, including used cooking oil and animal fats, says GoodFuels.
This follows previous GoodFuels biofuel testing with several shipowners, including B100 testing on a vessel owned by Dutch shipowner Spliethoff Group last year.
GoodFuels has partnered with Japanese trading firm Itochu Corporation to develop a biofuel supply chain across Singapore, Japan and the wider Asia-Pacific region.
NYK Line tests 100% biodiesel for the first time in Japan
The B100 biodiesel was produced by Finnish refiner Neste and the stem was delivered to Japanese shipping firm NYK Line by energy firm Itochu Enex.
Neste says its B100, or 100%, biodiesel can reduce carbon dioxide emission by up to 90% on a lifecycle assessment basis and is derived from waste cooking and animal oil.
The biodiesel can be used as a drop-in fuel without any modifications to engines or bunker existing infrastructure.
NYK Line seeks to promote biofuel as a drop-in fuel across its fleet. It aims to be net-zero by 2050, and is currently expanding its LNG fleet, before gradually moving to ammonia or hydrogen.
GCMD to run bio-bunker test project across three continents
Testing is expected to run for 12-18 months and involves 12 vessels that will bunker B30 biofuel blends in Singapore, Rotterdam and Houston.
Singapore-based Global Centre for Maritime Decarbonisation (GCMD) and other 18 industry partners say they have launched the project to assess how well biofuel works as a drop-in fuel, and to strengthen its supply chain.
GCMD is looking to find out whether costs for biofuel blending can be brought down, see how compatible biofuels are in blends with conventional fuels, as gauge its greenhouse gas emissions on a well-to-wake basis.
It argues that economies of scale for bio-bunkers across major ports can help bring down costs. A B30 blend, with 30% fatty acid methyl esters (FAME) blended with 70% VLSFO or MGO, has been shortlisted for testing as it is more readily available, GCMD says.
Other than GCMD, the consortium is made up shipping firms, energy companies, engine manufacturer, fuel testing lab and consulting group. The pilot runs are expected to start on from 1 August.
“By facilitating and creating an optimised drop-in green fuels supply chain, this pilot will help to shape national and international standards of biofuels bunkering and lower the barrier for their wider adoption to reduce greenhouse gas emissions from a lifecycle perspective,” said GCMD’s chief executive Lynn Loo.
Testing is expected to run for 12-18 months and involves 12 vessels that will bunker B30 biofuel blends in Singapore, Rotterdam and Houston.
Australian ports explore ammonia bunkering
Australia’s Pilbara Port Authority (PPA) is collaborating with Norwegian firm Yara Clean Ammonia to explore whether they can build ammonia bunker infrastructure in ports on the Australian northwest coast.
The duo will assess potential ammonia bunker demand and whether bunker supply infrastructure can be built to connect to Yara's existing production plant in Pilbara. The plant currently produces ammonia for fertilisers. It also exports ammonia from the nearby Port of Dampier, which is also managed by the PPA.
They will devise guidelines for safe ammonia bunkering to the ports managed by the authority, which span Ashburton, Dampier, Port Hedland and the future ports of Anketell, Balla Balla and Cape Preston East.
“PPA strives to be a frontrunner in establishing frameworks to ensure safe ammonia bunker operations,” its chief executive Roger Johnston says.
Itochu partners hydrogen producer to scale ammonia supply chain in Japan, South Korea and beyond
Japanese conglomerate Itochu Corporation has teamed up with South Korean chemicals producer Lotte Chemical to create a supply chain for ammonia, and allow them to procure ammonia and other low- and zero-carbon fuels at competitive prices.
Itochu views ammonia as fuel that can curb greenhouse gas emissions from ships and thermal plants. It wants to secure steady supply of ammonia and create an international supply chain for ammonia as a marine fuel and fertiliser.
Takeo Akamatsu of Itochu’s marine and aerospace division told an S&P Global summit last month that he expects ammonia to be available as a marine fuel soon. Itochu has been working with other companies to set up ammonia bunker supply in Singapore, and develop a ship with an ammonia-powered engine by 2026.
A main concern around ammonia as a marine fuel has been its toxicity and potential safety hazards. Itochu and more than a dozen other companies and organisations launched an ammonia safety study in April to come up with a framework for knowledge-sharing and guidelines.
Both Japan and South Korea will be big importers of ammonia and other low- and zero-carbon fuels in the years to come, Itochu and Lotte say.
Hydrogen and its ammonia derivative are set to play major parts in Japan’s long-term decarbonisation plan. The government of Japan forecasts that domestic ammonia demand will rise to 3 million mt by 2030 and then grow tenfold to 30 million mt in 2050.
Because ammonia is easier and cheaper to store than hydrogen it can be used as a hydrogen carrier. Hydrogen can be low- and zero-carbon either through electrolysis of water with renewable energy (green) or electrolysis of water with energy from fossil fuels with carbon capture and storage (blue).
Hydrogen can then be combined with nitrogen captured from atmospheric air to produce ammonia through the well-known Haber Bosch process.
Lotte has previously said it is South Korea’s largest producer of hydrogen as a by-product from its petrochemical plants in Daesan, Ulsan and Yeosu. And it has set its sights on developing hydrogen production technologies and distribution.
By the end of the decade, Lotte expects to have ramped up hydrogen production to 600,000 mt, of which 160,000 mt will be blue hydrogen and 440,000 mt green. To store and distribute the hydrogen it will mass produce 100,000 high-pressure hydrogen storage tanks by 2025, and quintuple this to 500,000 tanks by 2030.
Lotte expects to supply a total of 1.2 million mt of hydrogen by 2030, which will include its own production and sale and distribution of hydrogen from other producers.
