GLOBAL LOW-CARBON MARINE FUELS

GLOBAL LOW-CARBON MARINE FUELS

The global low-carbon marine fuels market will look to alternative means of decarbonizing the shipping industry, such as optimizing port operations, as the order book for LNG and methanol-fueled ships continues to grow

Optimizing port efficiency could reduce shipping GHG

Optimizing port arrivals by minimizing congestion or wait times can reduce voyage emissions by up to 25% for some ship types, energy research company UCL Energy Institute and independent commercial consultancy UMAS said Dec. 5.

The average potential emissions savings for voyages is around 10% for container ships and dry bulkers, 16% for gas carriers and oil tankers and almost 25% for chemical tankers, drawing from the results of their joint study analyzing ship movements during 2018-2022.

According to the UCL-UMAS study, container ships, dry bulkers, gas carriers, oil tankers and chemical tankers spent 4%-6% of their operational time, or around 15-22 days every year, waiting at anchor outside ports before being given a berth.

LNG makes further gains as cost-competitive marine fuel

Shipowners could minimize compliance cost under the EU’s incoming regulation on greenhouse gas emissions from marine energy use by shifting to fossil LNG over the next two decades, global classification society DNV said on Dec. 5.

In its study based on an 80,000-dwt bulk carrier assumed to be operating in EU waters between 2025 and 2044, DNV found simply burning LNG would be the cheapest compliance option for the shipowner at $113 million over the period.

Methanol-capable ships grow in surging green vessel order book

The order book for new-builds capable of running on low-to-zero carbon fuels is rising dramatically, with methanol-capable ships gaining increased traction as shipowners look for flexibility in their fuel choices amid tightening environmental rules in global shipping, Veritas Petroleum Services said.

The 2023 order book showed 539 new builds capable of running on low-to-zero carbon fuels, being ordered, equating to 45% of all orders in terms of gross tonnage, the global testing, inspection, and advisory solutions company said in a statement.

While “LNG dual-fuel ships are currently the most popular vessels of choice,” the shipping industry is keeping its options open and is increasingly embracing methanol as a marine fuel," it said.

“Currently, we see 39 methanol-powered ships on our seas but a further 262 are on order,” VPS said, adding that methanol bunkering facilities were also growing, with about 13 ports now offering it.

Methanol fuel handling and management is easier than LNG, with retrofit costs also less expensive and easier, VPS said. In terms of ECA compliance, it also conforms to sulfur oxides, nitrogen oxides and particulate matter content.