The Week in Alternative Fuels

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

PHOTO: Photo of H2 Carrier's P2XFloater Ammonia Production Unit. DNV

With methanol gaining traction in the shipping industry, several ports have initiated steps to scale up bunkering for green fuels.

South Korea conducted its first ever methanol bunkering in Ulsan this week. Two dual-fuelled tankers operated by Swedish shipping company Stena Bulk were supplied over 2,000 mt of methanol by Proman. Stena Bulk asserts that two vessels would bunker 12,500 mt/year of methanol each and expects methanol bunkering to grow as the fuel is widely available across 120 ports.

Big container giants such as Maersk and Ocean Network Express (ONE) have heavily invested in new methanol powered container ships, the duo expects to operate about 22 of them by 2025, while others are set to place orders.

To cater expected rise in demand from methanol fuelled newbuilds, Swiss marine engine maker WinGD has announced partnership with Korean firm HSD engine to develop methanol-powered big bore engines by 2024.

Several companies are considering developing vessels that can be used as a floating production and storage unit. This week, Norway-based H2 Carrier has announced plans to develop a Very Large Gas Carrier that can be operated as floating production unit for ammonia.

Also this week, Israel based shipping firm ZIM Integrated Shipping Services has signed a 10-year supply agreement deal worth more than $1 billion with oil supermajor Shell. Under the agreement, Shell will supply LNG to 10 LNG powered container ships operated by ZIM.

Biofuel hits headline again this week, Dutch biofuel supplier GoodFuels has supplied biofuel to a Supramax bulker operated by Japanese shipping company Kawasaki Kisen Kaisha (“K” LINE) in Singapore.

By Nithin Chandran

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

Proman Stena Bulk completes South Korea’s first methanol bunkering

Proman Stena Bulk’s two fully operational tankers have been supplied each with over 2,000 mt of methanol in Ulsan, South Korea.

Built at China’s Guangzhou Shipyard International, the 49,990-dwt dual-fuel tanker vessels Stena Pro Patria and Stena Pro Marine are expected to bunker 12,500 mt/year of methanol, each.

Proman Stena Bulk is a joint venture between Swiss methanol producer Proman and Swedish shipping company Stena Bulk.

The firm says increase in global uptake of methanol as a marine fuel has been possible partly because of if availability across 120 ports, including the major bunkering hubs of Singapore, Algeciras, Houston and Rotterdam.

“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,” Proman Shipping’s managing director for marketing and logistics Anita Gajadhar said.

WinGD collaborates with HSD Engine to develop methanol-fueled engines by 2024

Swiss marine engine maker WinGD has collaborated with Korean firm HSD Engine to advance the development of its methanol-fuelled big-bore engines.

The duo aims to develop the engine by 2024.

WinGD will oversee combustion and injection research, exhaust aftertreatment requirements and engine concept design, while HSD Engine will assist on cost-effective manufacturing and assembly. It will also offer engine testing capabilities, deliver fuel supply and exhaust aftertreatment systems.

WinGD says these engines will be suitable for large and ultra-large containerships, which have growing interest in green methanol amid rush to lower greenhouse gas (GHG) emissions and meet the IMO’s decarbonisation goals.

Demand for green ammonia is also growing from the bulk carrier and tanker segments, albeit at a slower pace, it adds.

The project will focus on some of the largest engines in the WinGD portfolio.

The company has also collaborated with Hyundai Heavy Industries’ Engine Machinery Division (EMD) for development of its firs ammonia engine by 2025.

DNV awards AiP for H2 Carrier’s green ammonia floating production unit

Classification society DNV has granted Approval in Principle (AiP) to a design for an industrial-scale floating production unit for green ammonia.

Norway-based H2 Carrier has developed a concept dubbed P2XFloater, which involves the conversion of a Very Large Gas Carrier into a floating, production, storage and offloading unit (FPSO).

The FPSO will produce ammonia through the Haber-Bosch process, using green hydrogen produced through electrolysis of seawater with renewable energy, as well as nitrogen produced onboard.

The Haber-Bosch process produces liquid ammonia when hydrogen and nitrogen are combined under high pressure and temperature.

The AiP covers all aspects of the integrated vessel concept including structural integrity, mooring, ammonia production, ammonia storage and cargo handling, says Conn Fagan, DNV’s vice president of business development for floating production 

ZIM secures 10-year LNG bunkering deal with Shell

The deal is valued more than $1 billion, and oil supermajor Shell will supply LNG stems to 10 LNG powered 15,000 TEU container ships operated by Israel based shipping firm ZIM Integrated Shipping Services.

The LNG powered vessels are set to be inducted between 2023 and 2024 and will be used transport cargo from China and South Korea to US East Coast and the Caribbean, ZIM says.

ZIM claims these vessels will emit 20% less greenhouse gas emissions compared to conventional vessels.

“Our growing LNG-powered fleet will enable ZIM to be more carbon and cost efficient, while improving our competitive position, particularly on the strategic Asia to USEC trade, and allowing customers to reduce their carbon footprint,” ZIM's chief executive and president Eli Glickman said.

GoodFuels supplies biofuel to Supramax bulker vessel in Singapore

A biofuel blend was delivered by Dutch biofuel supplier GoodFuels to a Supramax bulker Albion Bay operated by Japanese shipping company Kawasaki Kisen Kaisha (“K” LINE) in Singapore.

This is the second biofuel trial successfully completed by "K" Line, and will follow by a third planned trial on its cape-sized bulker with GoodFuels as part of its efforts to reduce carbon emissions.

GoodFuels has partnered with Japanese trading firm Itochu Corporation to develop a biofuel supply chain across Singapore, Japan and the wider Asia-Pacific region.

Under the partnership, ITOCHU manages logistics, blending and distribution of biofuel blend and GoodFuels is responsible for sourcing, technical expertise and sales.

“K” Line started testing biofuel on its vessels at the end of 2021. The first trial saw its car carrier Polaris Highway bunker biofuel provided by BP at the Dutch port of Flushing in November.