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

As a founding member of the First Movers Coalition (FMC), commodities group Trafigura has committed to carbon dioxide removal as well as to purchase at least 50,000 tonnes of durable and scalable net carbon dioxide removal credits by the end of 2030 generated through advanced carbon dioxide removal technologies. This is its third commitment to the FMC as it is already a signatory to the FMC shipping and aluminum sector commitments. According to Trafigura, its commitment, in line with the FMC guidelines and other companies making that commitment, is subject to the availability of technology supply that enables companies to meet their 2030 purchase pledges.

The FMC, launched at COP26 and led by the World Economic Forum and the US government, targets the heavy industry and long-distance transport sectors. The World Economic Forum has partnered with the US Special Presidential Envoy for Climate John Kerry and 69 global businesses to invest in innovative green technologies. Those financing commitments are expected to ensure new technologies are available for scale-up by 2030 and make a critical contribution to achieving net-zero emissions by 2050.

Alliances for Decarbonization
 
US, Canada, and Mexico to boost the clean hydrogen market in North America: The US, Canada, and Mexico have ‘committed to combatting the climate crisis’ by working together on the development of a clean hydrogen market in North America. At the conclusion of the North American Leaders’ Summit, the countries agreed to work together in six areas, including methane emissions reduction, electric vehicle chargers, and hydrogen. According to the White House fact sheet, the nations committed to “developing a North American clean hydrogen market, including potential cooperation on research and development, safety codes and standards, cross-border hydrogen clusters, green freight corridors, and integrated maritime operations.”


Abu Dhabi-based clean energy company to explore green hydrogen exports from Abu Dhabi to Europe: Abu Dhabi-based clean energy company Masdar and four Dutch companies have signed a memorandum of understanding (MoU) to explore the development of a green hydrogen supply chain between Abu Dhabi and Amsterdam. The MoU was signed by the representatives of Masdar, Port of Amsterdam, SkyNRG, Evos Amsterdam, and Zenith Energy Terminals to assess green hydrogen exports from UAE to support Dutch and European markets. The parties agreed to join their efforts to develop a green hydrogen supply chain, focusing on production in Abu Dhabi and export to the Netherlands through the port of Amsterdam. The exported green hydrogen will be delivered to key European sectors – sustainable aviation fuel (SAF), steelmaking, and bunkering for shipping – and will also be supplied to new, emerging European offtakers, via pipeline, truck, and barge.
 
Industry Actions
 
ecoinvent joins Mærsk Mc-Kinney Møller Center: Internationally active not-for-profit association ecoinvent has formalized its collaboration with Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping by signing a knowledge partnership agreement. As informed, with this agreement ecoinvent and the center become official partners, committing to a long-term strategic collaboration and contribution to accelerate the decarbonization of the maritime industry. ecoinvent is a not-for-profit association based in Zurich, Switzerland. It was founded 20 years ago by the Swiss research institutes ETHZ, EPFL, PSI, Empa and ,Agroscope.


K Line, KEPCO to study shipping of liquified CO2: Japanese shipping heavyweight Kawasaki Kisen Kaisha (K LINE) has signed a Memorandum of Understanding (MoU) with the Kansai Electric Power Co. (KEPCO) on the joint study of shipping liquefied CO2 in the context of developing a carbon dioxide capture and storage value chain. The two companies will study optimal marine transportation schemes and shipping costs of liquefied CO2 emitted from KEPCO’s thermal power plants and aim to develop the CCS value chain in the future. This joint study will investigate the method of liquefied CO2 marine transportation, which are suitable for long-distance and large-scale transportation, and develop a more flexible CCS value chain. CCS is expected to play an important role in contributing to the achievement of carbon neutrality by 2050.
 
Next Generation of Vessels
 
BULKER 
 
Cargill orders methanol-powered Kamsarmax pair: Swiss freight trader Cargill has placed an order for two methanol-fuelled bulk carriers in Japan. Namely, the company has teamed up with Mitsu & Co, and ordered a Kamsarmax duo from Japanese shipbuilder Tsuinesihi Shipbuilding. The order was reportedly signed last month and the ships are scheduled for delivery at the end of 2025 and in the first quarter of 2026 respectively. The order is somewhat scaled from the initial plans of six vessels, mostly due to yard schedules and prices, with further orders expected to follow suit.


LNG
 
First LNG dual-fuel VLCC joins Maran Tankers Management fleet: Maran Tankers Management, an oil tanker shipping unit of the Angelicoussis Shipping Group, has taken delivery of its first LNG dual-fuel very large crude carrier (VLCC). The vessel, which was named Antonis I. Angelicoussis after the group’s founder, was delivered on 3 January by South Korean shipbuilder Samsung Heavy Industries (SHI). This was revealed in a social media post by Maran Tankers Management. According to the company, the VLCC has a cargo capacity of 320,000 dwt and was designed to be both highly efficient and environmentally friendly.


FERRIES
 
Japan’s 1st LNG-fueled ferry enters service: The first of Japan’s two LNG-fueled ferries, the Sunflower Kurenai, owned by Japanese shipping major MOL and operated by its group company Ferry Sunflower Co., has officially entered into service. The ferry launched an operation on January 13 between the Osaka-Beppu route, linking Sunflower Ferry Terminal, Osaka Prefecture, and Beppu International Tourist Port, Oita Prefecture. The ferry will serve as a replacement for the ferry Sunflower Ivory. According to MOL, the vessel adopts the latest environmental-friendly specifications including a high-performance dual-fuel engine, which can run on both LNG and heavy fuel oil. The use of LNG fuel is expected to reduce emissions of carbon dioxide (CO2) by about 25%, and sulfur oxide (SOx) by virtually 100%. In total, MOL has ordered four LNG-fueled ferries. Following the Sunflower Kurenai and the Sunflower Murasaki, the first and second LNG-fueled vessels.


CAR CARRIERS
 
Grimaldi adds to ammonia-ready car carrier orderbook in China: The Italian shipowner Grimaldi Group has signed an order for the construction of up to seven ammonia-ready pure car and truck carriers in China, worth around $630m. The Naples-based company has booked five firm 9,000 ceu units at CSSC-affiliated Shanghai Waigaoqiao Shipbuilding and China Shipbuilding Trading Company, with an option for two additional ships. The first five 200 m long newbuilds, designed to carry electric vehicles, will deliver between 2025 and 2026 and be deployed on voyages between Europe, North Africa, and Asia. The deal follows an order for five ammonia-ready, 9,000 ceu ships at China Merchants Heavy Industries Jiangsu shipyard, with an option attached for five more units worth a total of $1bn.


Ro-Ro
 
World’s first wind-powered RoRo vessel gets €9 mln boost: Wallenius Wilhelmsen and project partners have won €9 million worth of funding under the Horizon Europe program to support building a RoRo sailing vessel named the Orcelle Wind. The project, announced back in 2021, is now entering the planning, building, and operating stage set to last for five years. Orcelle Wind is a wind-powered Pure Car Truck Carrier. It will be 220 meters and have a capacity for over 7,000 cars. It will also be capable of carrying breakbulk and rolling equipment. The project is a crucial part of Wallenius Wilhelmsen’s fleet decarbonization strategy and the ambition is for it to commence sailing in late 2026 or early 2027.


Shipyards
 
KSOE lands $784 million deal for LNG carrier trio: South Korean shipbuilding heavyweight Korea Shipbuilding & Offshore Engineering (KSOE) has received an order for three liquefied natural gas (LNG) carriers. KSOE’s unit Hyundai Heavy Industries will construct the 200,000 cbm LNG vessels for an undisclosed shipowner from Oceania. The value of the contract is KRW 971.4 billion ($784 million). The ships are slated for delivery in stages by November 2026, according to KSOE’s stock exchange filling. KSOE also recently embarked on a project with Shell, Doosan Fuel Cell, HyAxiom, and classification society DNV to use a 600KW high-efficiency solid oxide fuel cell (SOFC) for power generation on a 174,000 cubic-metre LNG carrier to be run by Shell from 2025. The LNG carrier will use fuel cells as an auxiliary power unit (APU) and perform its demonstration for one year on the actual trade route.


Construction of 2nd LNG carrier for Qatari project begins in China: Chinese shipyard Hudong-Zhonghua Shipbuilding Group Co. has started construction of the second liquefied natural gas (LNG) carrier ordered by Mitsui O.S.K. Lines (MOL) as part of QatarEnergy’s massive LNG shipbuilding program. The construction of the 174,000 cbm carrier started on 16 January at the Changxing Shipbuilding Base in the presence of representatives from MOL, COSCO Shipping LNG Investments, ABS, and others. The ship adopts the fifth-generation 174,000 cbm LNG carrier model independently developed and designed by Hudong-Zhonghua. It has a total length of 299 metres, a molded width of 46.4 metres, and a molded depth of 26.25 metres and is tailor-made according to the technical standards formed by Qatar Energy.
 
Longship orders methanol-ready ships from Atlas Shipyard: Dutch shipping company Longship has ordered four ultra-low-emission ships from Atlas Shipyard in Turkey. The design of the 8,600 dwt vessels has been developed together with Dutch naval architect Ankerbeer BV. As informed, the vessel design is compliant with the EU Stage V standards applicable to non-road mobile machinery (NRMM). The ships will feature a diesel-electric propulsion system that delivers a reduction in consumption of about 45 percent when compared to the currently dominant ship types of similar size.


Technology 
 
BV awards LNG GAS-MAC certificate to MARIC: Bureau Veritas (BV) has issued the certificate to Shanghai Zhongchuan NERC-SDT Company, subsidiary of MARIC, for LNG Fuel Gas Automatic Control Unit, Model Gas MAC system, the first of this type certificate in China. The product and prototype both acquired certification from BV, which features highlights of stability and reliability, high-safety and intelligence, can already be applied on vessels.
 
World’s largest LNG-powered aluminum catamaran to switch to batteries: South American ferry operator Buquebús is in talks with Australian catamaran builder Incat Tasmania on the possibility of replacing the LNG powerplant with a battery-electric solution on its newbuilding ferry under construction at the yard. Having an overall length of 130 metres, a width of 32 metres and the capacity to carry 2,100 passengers and 226 cars, it will be the largest aluminium catamaran ever built by Incat. The vessel was originally intended to be powered by LNG and Finnish technology group Wärtsilä was contracted in august 2022 to supply engines, waterjets, and fuel storage and supply system.


Fuels
 
Airbus tests renewable marine fuel: In order to reduce the impact of its industrial activities on the environment: Airbus is continuously introducing alternative energy solutions across the different transportation methods it uses air, road, and maritime. In 2019, Airbus introduced Sustainable Aviation Fuel (SAF) for its Beluga operations and initiated the use of biogas trucks in 2021 to transport aircraft sections and major components across its production sites in Europe. In addition, in December 2022, Airbus launched its first test campaign to explore the use of renewable fuel for its fleet of vessels over the course of 18 months.
 
Japanese duo wins DNV’s nod for ammonia-fuelled ship design: Classification society DNV has awarded approval in principle (AiP) to ammonia-fuelled ship design developed by Japanese companies Sumitomo Corporation and Oshima Shipbuilding. The AiP confirms that the vessel design of a Kamsarmax bulk carrier meets the technical requirements and safety standards following a Hazard Identification Study on the associated risks of using ammonia as a fuel. Sumitomo designed and developed the bulk carrier, while also improving the navigation environment. Furthermore, the company will ensure the supply of ammonia as fuel, in cooperation with Oshima Shipbuilding and other external partners as well as with the involvement of the internal cross-organizational project team for ammonia.

Carbon storage
 
MISC, Mitsui, and SHI to collaborate on CCS value chain: Malaysian energy logistics group MISC Berhad (MISC) has joined forces with South Korean shipbuilder Samsung Heavy Industries (SHI), Japanese trading company Mitsui & Co. and international technology group Andritz to explore opportunities for carbon capture and storage (CCS) solutions in the maritime value chain. On 18 January, the companies signed Memorandums of Understanding (MoU) to work on the projects which will include identifying storage hubs, developing floating solutions, and carbon capture parts and equipment. Under the MoU with Mitsui, the parties will jointly collaborate on business opportunities across the CCS value chain, including the identification of potential CCS hubs, and assessing the commercial and technical viability of CCS solutions. Meanwhile, the partnership with SHI covers the joint development of the engineering, procurement, and construction (EPC) of the floating carbon dioxide (CO2) solutions to facilitate and support the optimization of offshore CCS projects by combining each party’s expertise, experience, and resources.


Ports
 
Nine in 10 major ports are exposed to climate hazards: New research from the University of Oxford’s Environmental Change Institute (ECI) indicates that nearly nine in 10 major ports globally are exposed to damaging climate hazards, resulting in escalating economic impacts on global trade. Because of their locations in hazard-prone areas along coasts and close to rivers, ports will have to cope with sea-level rise and more-severe storms because of climate change. The resulting physical damage to infrastructure and disrupted operations can have far-reaching consequences. The ECI study, published in Communications Earth and Environment, provides a detailed picture of climate risks for 1,340 of the most important ports globally. It combines a new geospatial database of port infrastructure assets, with details on natural hazards, including earthquakes, cyclones, and flooding, as well as localized information on “marine extremes,” such as wind speeds, waves, and temperature.

Port of San Diego doubles shore power capacity: The Port of San Diego is ramping up its efforts to improve air quality at the port by doubling the capacity of ships that can use shore power. Namely, two cruise ships can now simultaneously use shore power in San Diego rather than running their diesel engines while at berth. Previously, only one vessel was able to do so. On Friday, 13 of January, the Disney Wonder and the Insignia were the first two cruise vessels to use shore power at the same time in San Diego. The port invested $4.6 million to complete this project and worked with Cochrane Marine, LLC to purchase equipment and manage the construction, coordination, testing, and commissioning. San Diego County-based Baker Electric, Inc. installed the port-provided electrical equipment and removed, replaced, and terminated medium voltage cables. The port installed its first shore power outlet at the cruise terminals in 2010.


HAROPA PORT reveals €590m investment in decarbonized industrial cluster: In 2022, HAROPA PORT, France’s leading port, saw over half a billion euros invested in the development of a decarbonized industrial cluster at the port. HAROPA PORT with its three port/industrial zones, working through the nonprofits Synerzip – LH, Incase – Industrie Caux Seine, and Upside Boucles de Rouen, submitted a joint application to the call. In October 2022, the cities of Le Havre, Rouen, and Paris, in conjunction with HAROPA PORT, selected 21 submissions in response to the first call for declarations of interest for the development of decarbonized urban river logistics at 32 locations along the Seine Axis. The project partners established a provisional list of studies costing over €10m for the preparation of the decarbonization of industrial and logistics operations. The projects include a biowaste production initiative, hydrogen generation from LNG service stations, and plastic recycling, among others.


Floating wind, and green hydrogen brings Green Freeport status to two Scottish ports: The Scottish and UK governments have awarded the Green Freeport status to Inverness and Cromarty Firth Green Freeport and Forth Green Freeport in Scotland. The ports, Scotland’s first Green Freeports, will receive up to GBP 52 million in start-up funding and will benefit from tax reliefs and other incentives. As the governments announced the status awards, British Ports Association (BPA) welcomed the news and called on the UK and Scottish governments to consider how this could be extended to ports in all regions.

Stolthaven Terminals, Revivegen eye ammonia for their joint terminal in Taiwan: Stolthaven Terminals and Taiwanese Revivegen Environmental Technology Co. LTD launched their joint venture at a ceremony with Taiwan Cooperative Bank in Kaohsiung. The duo teamed up in 2021 with the intention to build a new greenfield terminal in Kaohsiung Port, Taiwan. The JV has been named Stolthaven Revivegen Kaohsiung Terminal Co., Ltd. (SHRVK) and it is targeting the growing demand for high-quality bulk liquid storage in the region and introducing more international trade to Taiwan. The two companies plan to develop integrated storage, drumming, warehousing, and distribution solutions for chemical and bulk specialty liquid customers. The terminal has also been described as ‘well-positioned’ to provide storage to support the transition to greener energy and fuel alternatives, including ammonia.

Governments
 
Swedish gov’t OKs Ports of Stockholm’s EU grant application for onshore power project: The Swedish government has given the go-ahead for Ports of Stockholm’s EU grant funding application for onshore power pilot studies. In the first week of January the positive decision was taken by the Swedish government to approve Ports of Stockholm’s request to submit a joint application, together with eight other Baltic Sea ports, for a grant from the EU Connecting Europe Facility (CEF). The aim is to improve the electrical supply infrastructure by expanding the onshore power connections at Ports of Stockholm to ensure the development of more sustainable shipping with low emissions of air pollutants. The joint EU grant application has the title Baltic Ports for Climate and is being submitted together with the ports in Aarhus, Klaipeda, Ventspils, Helsinki, Riga, Tallinn, Gdynia, and Hamburg.


India aims to get local shipping hooked on green hydrogen: India’s newly launched National Green Hydrogen Mission (NGHM) has identified shipping as a sector for pilot projects with New Delhi setting aside an initial $2.5m for a variety of pioneering efforts that will also look at the steel sector. “Pilot projects will help identify operational issues and gaps in terms of current technology readiness, regulations, implementation methodologies, infrastructure, and supply chains. These will serve as valuable inputs for future scaling commercial deployment,” the new government mission said. India’s oil and gas companies will be required to charter at least one ship each to be powered by green hydrogen or derived fuels by 2027, and then they will have to add one more hydrogen-powered ship per year. Green ammonia bunkering facilities will be established in at least one port by 2025 with similar facilities to be created at all major ports by 2035. India will look to create its own green hydrogen and manufacture its own electrolyzers.

By Maria Bertzeletou, Breakwave Advisors



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

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