News Update – 18 May 2020

News Update – 18 May 2020

Ship and Bunker: INTERVIEW: The Falling Cost of Biofuel – Now a “Commercially and Technically Viable” Alternative to Fossil Bunkers

The price of GHG-footprint reducing biofuels has declined to the extent where they should now be considered both a commercially and technically viable alternative to conventional bunkers, even as the price of oil slumps to multi-year-lows, according to supplier GoodFuels.

Chinadialogue Ocean: China enters a new low-sulphur shipping era

Establishing emission control areas has prepared China for global sulphur restrictions, but challenges remain

Bunkerspot: Spain marks significant upswing in LNG bunkering operations

A total of 185 LNG bunkering operations have been carried out in Spanish ports up to the end of April this year, with volumes doubling to 47,615 cubic metres (cbm) compared to the same period last year.

The growth in the development of the Spanish LNG bunkering market has been strong in the past few year. According to statistics provided by the European Commission’s CORE LNGas hive initiative, in 2019, a total of 195 LNG bunkering operations were carried out, over a three-fold increase from the 60 gas fuel deliveries undertaken in 2018.

Bunkerspot: DNV GL: Hydrogen taking ‘a primary position’ in decarbonisation efforts

A new report from DNV GL has indicated that hydrogen has ‘surged up the priority list’ of many energy organisations, taking a ‘primary position’ in the sector’s decarbonisation efforts.

More than half (52%) of senior oil and gas professionals expect hydrogen to be ‘a significant part of the energy mix by 2030’, said DNV GL, and a fifth (21%) of industry leaders say their companies have already entered the hydrogen market.

Bunkerspot: GLOBAL Seaspan using Alfa Laval solution to resolve LSFO issues

Seaspan Ship Management has chosen Alfa Laval to help resolve steam balance and redundancy issues associated with the use of sulphur-compliant marine fuels.

Bunkerspot: IEA: oil supply set for ‘spectacular’ fall in May to hit nine-year low

The International Energy Agency’s monthly Oil Market Report, published today (14 May), says the peak decline for global refining activity has shifted to May, with refinery storage bottlenecks starting to multiply at the beginning of the month as refineries in Europe, Asia and Africa halted production due to falling energy demand.

Bunkerspot: DNV GL launches pilot phase of FuelBoss LNG bunkering platform

‘Feedback from suppliers has been very positive and we expect to have at least 10 suppliers on FuelBoss before the pilot phase ends, covering both Europe, Asia and North America’ DNV GL’s Martin Wold tells Bunkerspot.

Bunkerspot: GLOBAL: VPS publishes white paper on engine protection for VLSFO’s

During an investigation into the impact of the new very low sulphur fuel oils (VLSFO) on cylinder oils, VPS identified over 40 vessels suffering major engine damage since starting to bunker VLSFO.

Bunkerspot: ASIA PACIFIC: Port of Qingdao marks first VLCC bunker delivery; outlines VLSFO supply ambitions

A Sinopec barge, An Shen 5, bunkered the New Vista very large crude carrier (VLCC) with 1,600 metric tonnes of very low sulphur fuel oil on 11 May. Wärtsilä Fuel Efficiency Boost will reduce fuel consumption and greenhouse gas emissions for KOTC VLCC’s

Press Release: The technology group Wärtsilä has been contracted to upgrade the performance of four vessels owned by Kuwait Oil Tanker Company (KOTC), a subsidiary of Kuwait Petroleum Company (KPC), by retrofitting the Wärtsilä Fuel Efficiency Boost solution to the ships’ main engines. The modification will reduce fuel consumption, and correspondingly lessen the environmental impact by lowering greenhouse gas emission levels. The order with Wärtsilä was placed in the first quarter of 2020. KOTC and other major ship owners who have taken a proactive approach towards environmental protection have been actively looking for ways to reduce their fuel consumption and carbon footprint, thus paving the way for them to reduce greenhouse gas emissions. As a result, the Wärtsilä Fuel Efficiency Boost initiative has attracted considerable interest, and similar orders from other large shipping companies have been placed in recent months. New report shows large potential for energy optimization with a payback of less than 3 years

Press Release: In a project, under Green Ship of the Future, 20 partner organizations have identified potential double-digited savings through retrofittable solutions with an ROI of less than 3 years.

In the Retrofit Series project, which began in 2019, Green Ship of the Future and 20 partners examine the potential for energy optimizing existing vessels, and thereby reducing their fuel consumption and CO2 emissions. The report shows potential achievable savings of up to 27% through technology that are available today and can be retrofitted with an ROI of less than 3 years. In addition, the report points to some general areas, which based on the case studies of three different vessels, show potential for large energy savings. Integrated Alfa Laval Aalborg steam solution supports sulphur-compliant fuel use by Seaspan Ship Management

Press Release: Seaspan Ship Management has selected Alfa Laval to help resolve steam balance and redundancy issues connected to sulphur-compliant fuels. The comprehensive solution – an integrated steam boiler plant comprising oil-fired steam production, waste heat recovery, advanced control and connectivity – will soon be implemented on eight Seaspan owned large container ships. Hartmann orders ME-LGIP engines for LPG tankers

MAN Energy Solutions has won the contract to supply individual MAN B&W ME-LGIP (Liquid Gas Injection Propane) dual-fuel engines to 3 × 5,000-m3 LPG tankers currently under construction by CIMC-SOE (CIMC Sinopacific Offshore & Engineering Co., Ltd.) in Shanghai for Hartmann Gas Carrier, the German shipping company.

VPO: Double digit fuel savings possible using existing technology, finds study

Green Ship of the Future (GSF) and its 20 partner organisations have identified that fuel savings of up to 27 per cent could be achieved by using existing technologies that have an ROI of less than 3 years.

In the retrofit series project, which began in 2019, Green Ship of the Future and its 20 partners examined the potential for optimising the energy consumption of existing vessels, and the impact on their fuel use and CO2 emissions. The results indicated that a 27 per cent cut in energy consumption was possible, using only technologies that are available today and can be retrofitted with an ROI of less than 3 years. The report also points to some general areas, which based on the case studies of three different vessels, show potential for large energy savings.

VPO: Japan launches first LNG bunkering vessel

Japan’s first LNG bunker vessel (LBV) has been successfully launched at the Sakaide Works of Kawasaki Heavy Industries. The LBV is scheduled to be delivered at the end of September 2020 and will be the first LBV to be operated in Japan.

VPO: Coronavirus, coatings and carbon

Way back in January this year, a time that seems like it was generations ago, shipping was facing up to a global, existential challenge – reducing its carbon emissions and the global climate emergency. The fateful day of January 1, 2020 had come and gone with less disruption than many had anticipated, with generally widespread availability of low sulphur fuel to meet the IMO’s global sulphur cap requirements, and fewer violations than expected. For a few months, shipping’s attention had firmly switched from the issue of tackling sulphur to carbon, writes Catherine Austin, marketing & communications director, I-Tech AB and managing director of Blue-Green Marketing Consultants.

Ship and Bunker: Few ports wih VLSFO Availability Problems: Minerva Bunkering CEO

Minerva Bunkering now sees ‘very few# ports where the availability of low Sulphur fuel oil is a problem, according to its CEO.

Majority of IMO 2020 compliant bunker demand to be met by marine gasoil, low sulfur fuel oil: IBIA exec

Majority of IMO 2020 compliant bunker demand to be met by marine gasoil, low sulfur fuel oil: IBIA exec

Compliance to the International Maritime Organization’s global sulfur limit rule is expected to be high with about 95% of the compliant bunker fuel demand likely to be met by marine gasoil and low sulfur fuel oil come 2020, Simon Neo, regional manager Asia at IBIA, said Tuesday.

“Before 2020, things need to be ready as the date is cast in stone … IMO 2020 is final and there will be no delay,” Neo said at an industry event in Singapore.

The IMO will cap global sulfur content in marine fuels at 0.5% starting January 1, 2020, from 3.5% currently. This applies outside the designated emission control areas where the limit is already 0.1%.

Shipowners will have to switch to more expensive cleaner fuels or consider alternative fuels such as LNG or use HSFO with scrubbers to comply with this rule.

Read the full article here

VPS positive on IMO 2020 0.50% fuels from initial tests

VPS positive on IMO 2020 0.50% fuels from initial tests

Based on its initial test, bunker fuel testing agency VPS has delivered a positive assessment of the new IMO 2020 compliant 0.50% sulfur fuels.

“Large shipowners have already been sending us the new 0.50% fuel sample test blends, which they are getting ready to use,” Rahul Choudhuri, VPS managing director for Asia, Middle East and Africa   said at last week’s  Wilhelmsen Ship Management seminar in Singapore, as quoted by Platts.

Read the full article here

Compliance will mean more scrutiny

Compliance will mean more scrutiny

Now we are getting down to the nitty-gritty of the IMO’s 2020 sulphur cap. In the months leading up to the start of this global ban on sulphur emissions the business of tank-cleaning is just one of the pressing issues ship owners and operators need to tackle. Although the regulations are determined, there are areas that need to be addressed and most importantly understood in relation to the new compliant fuels. Vessels using any of the new fuel blends available to maritime shipping from January 1 2020 will need to have more than faith in bunkering to remain compliant once the IMO 2020 global sulphur cap comes into force.

Bunker delivery notes will now need to state the sulphur content of the new fuels supplied and this is just one of the concerns for ship owners, managers and operators according to Olivier Baiwir, CEO of Aderco.

“To keep within the regulations all bunker delivery notes will have to state the sulphur content of the fuel oil supplied. This can be verified by taking samples and the International Air Pollution Prevention (IAPP) certificate issued by the vessel’s flag state (registry) will need to state that the ship uses a fuel with the accepted new regulatory sulphur content. This will need to be within the applicable limits or uses an approved equivalent method to be compliant.

As we have been saying for many months, the availability of the new fuel and its bunkering has been one of the prime concerns since the formal announcement of the cap. Yet bunkering ports which are located in countries which are not parties to Annex VI, have no direct requirement to comply with Regulation 18: ship owners should, therefore, when ordering bunkers, insert clauses to the effect that the fuel oil supply process is to be in accordance with the requirements of Annex VI and with specified maximum sulphur content appropriate to the particular intended future area of operation. This will ensure they remain compliant with the cap.”

Certain regions such as in the Middle East and Australia believe they are small markets that will initially struggle to find the right amount of compliant fuel. But the reality is that ships will simply not use ports that cannot offer compliant fuels after January 1 2020. The clock moves on and so do the regulations: keep reading; keep planning and keep searching.

Regulation 18 MARPOL Annex VI

Regulation 18 Fuel oil availability and quality Fuel oil availability I Each Party shall take all reasonable steps to promote the availability of fuel oils that comply with this Annex and inform the Organization of the availability of compliant fuel oils in its ports and terminals. 2.1 If a ship is found by a Party not to be in compliance with the standards for compliant fuel oils set forth in this Annex, the competent authority of the Party is entitled to require the ship to: 1 present a record of the actions taken to attempt to achieve compliance; and 2 provide evidence that it attempted to purchase compliant fuel oil in accordance with its voyage plan and, if it was not made available where planned, that attempts were made to locate alternative sources for such fuel oil and that despite best efforts to obtain compliant fuel oil, no such fuel oil was made available for purchase. 2.2 The ship should not be required to deviate from its intended voyage or to delay unduly the voyage in order to achieve compliance. 2.3 If a ship provides the information set forth in paragraph 2.1 of this regulation, a Party shall take into account all relevant circumstances and the evidence presented to determine the appropriate action to take, including not taking control measures. 2.4 A ship shall notify its Administration and the competent authority of the relevant port of destination when it cannot purchase compliant fuel oil. 2.5 A Party shall notify the Organization when a ship has presented evidence of the non-availability of compliant fuel oil.

Compliant fuel, not scrubbers, chief choice for IMO 2020

Compliant fuel, not scrubbers, chief choice for IMO 2020

Only 2% of global fleet to adopt scrubbers to meet sulphur cap requirements, UBS report reveals.

Switching to compliant fuel overwhelmingly outweighs installing scrubbers when it comes to meeting the IMO’s 2020 regulations, says a top investment bank.

A report by UBS found that only 2% of the global fleet would adopt scrubbers by 2020.

According to its survey of shipping executives, 68% of correspondents preferred adopting low-sulphur fuel to meet IMO’s cap on sulphur emissions, whereas only 21% chose installing scrubbers.

A 9% minority opted to replace outdated vessels with new ships, and an even lower 6% chose LNG fuel.

The survey also suggests only 64% of the world’s shipping fleet will meet ballast water and sulphur cap rules by 2020.

The key hindrances to full compliance are uncertainties in regulatory specifications and effective technologies, the report said.

The IMO regulation change caps sulphur emissions at 0.5% from 3.5% from January 2020, and directs a 30% reduction in CO2 emissions by 2025.

Installing scrubbers is not a straight solution for meeting the sulphur and CO2 cap, the report suggested.

Problems arise, as some measures that meet one requirement do not meet the other, the report said.

It gave the example of ultra-low sulphur fuel oil (ULSFO) or low-sulphur marine gas oil (LSMGO) and scrubbers, which meets the sulphur cap rule but does not help lower CO2 emissions.

Adopting scrubbers can actually lead to higher CO2 emissions, the report said, and suggests adopting “ULSFO/LSMGO and scrubber may be a stop gap measure until a more dominant technology is available.”

Read the full article here.