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Shipping Decarbonization Weekly Insights -- How Shipping moves ahead to run on zero-carbon fuels

Latest Trends on fuel transition, shipyard actions, government, ports, financing and industry players
 
The scale of shipping's green transition has been put into sharp relief with new data from Germany's University of Applied Sciences showing the global shipping industry will require the equivalent of the world's entire current renewable energy demand to replace fossil fuel use.
 
Fuelling the Fourth Propulsion Revolution, authored by Professor Dr Stefan Ulreich and commissioned by the International Chamber of Shipping (ICS), shows that to reach the industry's 2050 net-zero goal, shipping's fuel needs would require electricity from renewable sources to increase by up to 3,000 TWh – the equivalent of the entire world's current renewable energy production.
 
It also found that to achieve the International Energy Agency's net-zero emissions by 2050 scenario, the world would need an 18-fold increase in existing renewable production capacity. The report identified the first movers who are looking to seize these investment opportunities, including Germany, Algeria, and Chile, who have signed multiple bilateral agreements on the production of hydrogen fuels.
 
New Alliances for Decarbonization
 
CF Industries becomes a strategic partner to the zero-carbon shipping center: Hydrogen and nitrogen products manufacturer CF Industries has decided to join the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping, an independent not-for-profit research and development center, as a strategic partner. By becoming a strategic partner to the center, CF Industries is committing to a long-term strategic collaboration and contribution to the development of zero-carbon technologies and solutions for the maritime industry. CF Industries is said to be one of the world's leading ammonia makers and is supporting global decarbonization by producing nearly 2 million tons of low-carbon ammonia production capacity by 2024. This includes installing a 20MW electrolyzer to enable the production of green ammonia at the Donaldsonville Complex in Louisiana, CF Industries said.


MAN ES finds another Korean partner for EEXI solution: German engine manufacturer MAN Energy Solutions (MAN ES) has signed a cooperation agreement with South Korean company STX Heavy Industries (STX HI) to deliver its three Energy Efficiency eXisting ship Index (EEXI) solutions to MAN B&W-branded low-speed engines manufactured by STX HI. As explained, the goal behind the agreement is to provide STX HI customers with an EEXI solution to help accelerate the pace for EEXI compliance.


Industry Actions
 
Scorpio invests in UK battery startup: Monaco-based Scorpio Group has made a strategic investment in UK-based battery technology startup Britishvolt with the aim of exploring power solutions for the maritime industry. Britishvolt plans to build a battery gigaplant in Northumberland and has secured investment that signals plans to power maritime as well as automotive vehicles. The company is working on plans for the former Blyth Power Station coal yards, which could create 3,000 direct jobs and another 5,000 through its supply chain once it opens in 2024.


Golden Energy Offshore ties up with Gen2 Energy to advance its decarbonization strategy: Norwegian owner Golden Energy Offshore Services (GEOS) is teaming up with compatriot green hydrogen player Gen2 Energy to explore the use of hydrogen-based fuels for its fleet. The two companies have penned a letter of intent to also work together on the identification of suitable locations for the availability of the alternative hydrogen-based fuel types. GEOS recently raised around NOK7.5m ($777k) through a private placement of new ordinary shares, intended amongst other things to accelerate its decarbonization process. The company operates a fleet of four vessels and is said to be actively pursuing opportunities for growing the fleet.


BP and Linde plan major CCS and hydrogen project in Texas: UK-based oil and gas giant BP and German engineering firm Linde plan a major carbon capture and storage (CCS) project in Texas that will enable low carbon hydrogen production at Linde's existing facilities. Upon completion, the project will capture and store CO2 from Linde's hydrogen production facilities in the greater Houston area (and potentially from its other Texas facilities) to produce low-carbon hydrogen for the region. The hydrogen will be sold to customers along with Linde's hydrogen pipeline network under long-term contracts.
 

Louis Dreyfus Armateurs signs up for sail technology: France's Louis Dreyfus Armateurs (LDA) has decided to equip one of its vessels with three suction sails created by Spain's bound4blue. The installation of the so-called eSails will take place next year and comes after the two companies have held discussions for the past three years. For bound4blue the contract is a breakthrough in terms of scaling up in ship size. Financing for the ship renovation comes with the support of the European Innovation Council (EIC) Acceleration Program.
 
Classification
 
Mitsubishi Shipbuilding, NYK get ClassNK AiP for large LCO2 carrier: Japanese shipbuilder Mitsubishi Shipbuilding, part of Mitsubishi Heavy Industries (MHI) Group, and compatriot shipping company Nippon Yusen Kabushiki Kaisha (NYK Line) have been granted approval in principle (AiP) from classification society ClassNK for joint development of CO2 transport technology for liquefied CO2 (LCO2) carriers.


Fuels Hydrogen
 
Two Norwegian players to explore the use of hydrogen as ‘fuel for the future’ in the maritime sector: Embarking on a journey to bring zero-emissions solutions to the fore, Norway's vessel owner and operator Golden Energy Offshore Services has teamed up with Gen2 Energy, a compatriot hydrogen company, to explore the use and availability of hydrogen-based fuel in the maritime industry. The two companies have inked a letter of intent (LOI) to mutually exchange experience and information regarding the use of possible hydrogen-based fuel for various types of vessels in Golden Energy Offshore's fleet along with the identification of suitable locations for the availability of the alternative hydrogen-based fuel types.
 
Biofuels
 
GoodFuels and Itochu partner in Asia: European biofuel producer GoodFuels has teamed with Japanese trading house Itochu to scale sustainable marine biofuel in Singapore, Japan, and Asia-Pacific. Itochu is actively engaged in the wholesale, distribution, and bunkering of petroleum products in both Singapore and Japan, while GoodFuels specializes in the sourcing, development, production, and delivery of sustainable marine biofuels, with a presence in the Netherlands and Singapore.
 
GoodFuels and Itochu will initially focus on the supply of sustainable marine biofuels to all Singaporean territorial waters, waterways, and harbors, as well as prospective customers transiting the Strait of Malacca. Then, in the second phase of the partnership, the companies plan to scale up deliveries to the wider Asia-Pacific region, including Japan.


Neste claims up to 80% GHG emission reduction with a biofuel blend: Finnish oil refiner Neste has introduced a co-processed 0.1% sulphur marine fuel together with Danish bunkering specialist Nordic Marine Oil that is said to cut greenhouse gas (GHG) emissions by up to 80%. Neste said the biofuel fuel enables GHG reductions over its life cycle compared to fossil fuels, without compromising product quality and performance. The fuel is produced at Neste's refinery in Porvoo, Finland, where renewable raw materials are co-processed with fossil raw materials in the conventional refining process, the company explained, adding that the drop-in fuel can be taken into use without any fleet modifications as it has a similar composition to conventional bunker fuels.
 
Technology – New Ship Designs
 
1st emission-free hybrid push boat christened in Berlin: Germany's emission-free hydrogen-fueled push boat Elektra has been christened, allowing the testing of the vessel to begin. Said to be the world's first push boat that combines battery-electric propulsion with hydrogen and fuel cell technology, Elektra represents a flagship project, said Federal Minister Volker Wissing. The minister added that the entire project is a blueprint for climate and environmentally friendly inland shipping.


Louis Dreyfus Armateurs signs up for sail technology: France's Louis Dreyfus Armateurs (LDA) has decided to equip one of its vessels with three suction sails created by Spain's bound4blue. The installation of the so-called eSails will take place next year and comes after the two companies have held discussions for the past three years. For bound4blue the contract is a breakthrough in terms of scaling up in ship size. Financing for the ship renovation comes with the support of the European Innovation Council (EIC) Acceleration Program.
 
Enviva signs up for multi-sail bulk carrier project with MOL: New York-listed wood chip producer Enviva has signed up for a sail-assisted bulk carrier to be ordered by Mitsui OSK Lines (MOL), which will feature both MOL’s own hard sail Wind Challenger as well as rotor sails created by Anemoi Marine Technologies.  MOL has tasked Oshima Shipbuilding with the building of the 62,900 dwt ship, securing a 2024 delivery slot. MOL claims the installed variety of sails will cut greenhouse gas emissions by 20%. As part of Enviva's goal to achieve net-zero greenhouse gas emissions from its operations by 2030, the company has committed to addressing scope 3 emissions. Shipping pellets across the Atlantic Ocean currently comprise one-third of Enviva’s supply chain emissions.


China to boost electric ship production after delivery of battery-powered cruise ship: China plans to ramp up the building of fully electric battery-powered ships to operate on the country's extensive inland waterways network following the successful maiden voyage of the Chang Jiang San Xia 1, a battery-powered cruise ship, China Classification Society (CCS) said.
 
Emission Tools
 
TotalEnergies deploys drones to tackle methane emissions: French energy giant TotalEnergies has launched a worldwide drone-based methane emissions detection and quantification campaign across all its upstream oil and gas-operated sites. The campaign uses the so-called AUSEA (airborne ultralight spectrometer for environmental applications) technology developed by TotalEnergies, the French National Research Center for Scientific Research (CNRS), and the University of Reims Champagne Ardenne. The project is part of the company's move to achieve a reduction of 50% in methane emissions at its operated sites by 2025 and of 80% by 2030.  Following tests at sites in Nigeria, Italy, the Republic of Congo, and the Netherlands, AUSEA technology is being rolled out further. The campaign, which began in early March for African offshore sites, has now been launched in South America and will reach Europe this summer. 


Regulations
 
Shipping moves closer to the EU's carbon trading system as lawmakers push for GHG cuts: Shipping has moved further toward being covered by the EU's carbon market (ETS) after the policymakers in the European Parliament's environment committee (ENVI) voted to further bolster the emissions-reduction scheme. The ETS reform was put forward by the European Commission last July as part of a massive package to align the bloc's economy with a stricter emissions-reduction target for 2030.
 
MEPs endorsed a string of changes to the carbon market, including expanding the scheme to cover 100% of voyages by 2028, as well as the charterer-pays clause and the creation of a dedicated fund for the energy transition of the sector. Europe's clean transport campaigner, Transport & Environment, welcomed the decision but warned that exemptions for ice-class vessels and voyages to the outermost regions would undermine its effectiveness.
 
Ports – Green Corridors
 
New initiative to explore the world's first cruise-led green corridor: The U.S. Port of Seattle, Alaskan City and Borough of Juneau, Canada's Vancouver Fraser Port Authority, major cruise lines, as well as the Global Maritime Forum, Blue Sky Maritime Coalition, and Washington Maritime Blue have announced a new commitment to exploring the feasibility of the world's first cruise-led ‘green corridor.’ The collaborative effort is aimed at exploring the feasibility of a green corridor that could accelerate the deployment of zero-emission ships and operations between Alaska, British Columbia, and Washington.
 
Cruise line and industry partners include Carnival Corporation and its cruise brands including Princess Cruises, Holland America Line, Carnival Cruise Line, Seabourn, and Cunard; Norwegian Cruise Line Holdings and its cruise brands including Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises; Royal Caribbean Group including its brands Royal Caribbean International, Celebrity Cruises, and Silversea Cruises; and Cruise Lines International Association, the world’s largest cruise industry trade association.


Ports
 
Port of Antwerp-Bruges and CMB.TECH create the first hydrogen-powered tugboat: Port of Antwerp-Bruges and CMB.TECH will soon welcome the Hydrotug, the first hydrogen-powered tugboat. The ship has two BeHydro V12 dual fuel medium speed engines that can run on hydrogen and traditional fuel. This pioneering development is an important step in the port's transition to a sustainable, climate-neutral port by 2050. At the same time, with the Hydrotug, CMB.TECH confirms its international ground-breaking role in the transition to "green" ships.


Gasunie and Fluxys team up on North Sea Port hydrogen network: Dutch gas infrastructure firm Gasunie and Belgian LNG terminal operator Fluxys have joined forces for a Dutch-Belgian hydrogen network connection in North Sea Port. Gasunie and Fluxys are working on the development of national hydrogen networks in the Netherlands and Belgium respectively. These networks will be interconnected in the North Sea Port area, which goes from Ghent to Vlissingen and Terneuzen. In the future, the Dutch-Belgian connection will supply hydrogen to companies in the 60-kilometer-long port area. Gasunie, Fluxys, and North Sea Port, therefore, signed agreements on this on 17 May 2022.


Governments
 
HySupply winners to receive government funding for hydrogen supply innovation: The UK Department for Business, Energy and Industrial Strategy revealed in a statement that 28 projects will receive a share of the £60 million funding. The funding is to support innovation in the supply of hydrogen, making it more viable. This funding has been awarded after a competitive bidding process to companies that demonstrated their potential to develop feasible low-carbon hydrogen supply solutions. 28 projects across the UK, including Scotland, Wales, and the north of England, received funding through the Low Carbon Hydrogen Supply 2 (HySupply 2) competition. This is to support research and innovation in producing and transporting hydrogen, making it a more viable and affordable fuel for energy-intensive sectors which rely on expensive fossil fuels.



Source: Breakwave Advisors, By: Maria Bertzeletou 


The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.

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