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Phased, multi-marine fuel approach key to net zero: APM

  • Market: Biofuels, Emissions, Fertilizers, Hydrogen, Natural gas, Oil products
  • 20/03/24

A phased approach, together with a combination of alternative marine fuels, will be required in the decarbonisation of the global fleet, experts said on the sidelines of the Asia Pacific Maritime (APM) 2024 conference and exhibition in Singapore last week.

"There are quite a few options in the pipeline but each with challenges regarding storage, safety and propulsion technologies," said the director of classification society Bureau Veritas' Innovation Centre of Alternatives and Renewable Energy and its Future Shipping Team, South Asia and Pacific Mike Watt. "One shoe does not fit all and short-range shipping will require different fuels from longer haul journeys."

Fuel availability at ports and the technology that the vessel owners choose are likely to be the deciding factors, he said.

"As no singular alternative fuel can scale to substitute the current [fossil] fuels used, we need to look for synergies to mature the fuels in parallel and vessel operators will need to adopt more flexibility in the fuels' usage," said Denmark's Mærsk Mc-Kinney Moller Centre for Zero Carbon Shipping's chief technology officer (energy and fuels) Torben Norgaard.

Watt also noted that a phased approach is needed by the industry, in line with the approach that think-tanks and non-governmental organisations have taken to concentrate and research on one alternative fuel at a time.

While biofuels looks like the most immediate decarbonisation solution, and equipment manufacturers can provide advice on their use, the shipping industry will face competition from other industries for biofuels uptake, said the programme director of Singapore Nanyang Technological University's (NTU) Maritime Energy and Sustainable Development (MESD) Centre of Excellence Imran Halimi Bin Ibrahim.

Although conversations are still continuing about ammonia's feasibility and safety, Norgaard expects downstream investments around this fuel to pick up at the end of the next 2-3 years. He noted rapid development in ammonia supplies are mainly driven by thermal power plants in Japan, South Korea and Singapore to some degree, expecting supplies of 30mn t of low-emissions ammonia by 2030.

The technology and know-how available about handling ammonia in the chemical industries can then be adapted to a bunkering scenario, Imran said.

"Besides ammonia having no carbon atom, it doesn't have to be stored at such low temperatures compared to LNG or hydrogen." Imran and his team, led by the research lead at NTU's MESD Centre of Excellence Liu Ming, are currently researching on mitigation technologies and environmental impact from ammonia bunkering release when ammonia is used in larger volumes as a shipping fuel. "Currently we've only had ship-to-terminal ammonia transfers. We need to figure out land-to-ship, ship-to-ship, truck-to-ship transfers. The state of ammonia will also influence safety considerations."

Future fuels

Vessels fuelled by LNG could move towards using bio-LNG without extensive modifications, Watt said. Hydrogen fuel cells will be more suited for short voyages. While methanol still has a significant carbon footprint, the industry could eventually progress towards green methanol.

When asked about how the price gap between fossil fuels and transition fuels could be narrowed, Norgaard said that redistributing the risk of upstream investments — which are usually much bigger than those in downstream investments — across the value chain could be the way forward.

"At the investment level, we need to acknowledge a need to join forces on term deals and de-risk competition between the companies," he said.

The biggest thing to watch this year would be the EU's extended coverage of its Emissions Trading System to incorporate the maritime sector, as part of its aim to reach net zero carbon dioxide emissions by 2050, Watt said.

"It will be interesting to see how FuelEU Maritime will be implemented, as it will be the first time market-based measures are being imposed on the marine industry," Norgaard added.


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02/05/25

Shell’s 1Q profit falls but beats expectations

Shell’s 1Q profit falls but beats expectations

London, 2 May (Argus) — Shell's Integrated Gas business segment delivered a solid performance in the first quarter, helping the UK major exceed analysts' earnings estimates despite ongoing struggles in its downstream Chemicals and Products business. Shell reported a first-quarter profit of $4.8bn, down from $7.4bn a year earlier. Adjusted for inventory valuation effects and one-off items, profit was $5.6bn, surpassing analysts' expectations of $5.3bn. Integrated Gas was Shell's top-performing segment, with a profit of $2.8bn, slightly higher than the first quarter of 2024. Production was down by 6.6pc year-on-year at 927,000 b/d oil equivalent (boe/d), but up 2pc from the previous quarter. Less maintenance at the Pearl gas-to-liquids plant in Qatar had a positive impact on production, Shell said. But the company's LNG volumes were affected by unplanned maintenance and weather constraints in Australia, falling to 6.6mn t from 7.6mn t a year earlier. The Upstream segment posted a profit of $2.1bn, down by 8.5pc on a year earlier but double what it made in the fourth quarter of 2024. The segment was hit with a $509mn tax charge related to the UK's Energy Profits Levy in the first quarter, partially offset by gains from asset sales. Production for the segment was slightly down compared to a year earlier at 1.86mn boe/d, partly due to the divestment of Shell's SPDC business in Nigeria. Overall, Shell's first-quarter production was 2.84mn boe/d, down from 2.91mn boe/d a year earlier but up from 2.82mn boe/d in the previous quarter. Shell expects lower production in the current quarter, ranging from 2.45mn boe/d to 2.71mn boe/d due to maintenance across its Integrated Gas portfolio and the absence of volumes from the SPDC business. The Chemicals and Products segment reported a $77mn loss for the first quarter, compared to a $1.3bn profit a year earlier. Refinery runs were down by 4.8pc year-on-year, and chemicals sales volumes were marginally lower. Despite persistent low margins in the downstream, Shell noted that refining and chemicals margins improved compared to the fourth quarter. Shell expects capital spending for 2025 to be within a $20bn-$22bn range, in line with last year's spending. The company is maintaining its dividend at 35.8¢/share and its share buyback programme at $3.5bn a quarter. By Jon Mainwaring Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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South Australia closes Hydrogen Power SA office


02/05/25
News
02/05/25

South Australia closes Hydrogen Power SA office

Sydney, 2 May (Argus) — The state government of South Australia has rolled its Office of Hydrogen Power SA (OHPSA) into the Department of Energy and Mining (DEM), after scrapping plans for a 250MW electrolyser and 200MW hydrogen-fired power station. The OHPSA has been absorbed into the other state department, a spokesperson for SA energy minister Tom Koutsantonis said on 2 May. This comes after the state cut the A$593mn ($381mn) it had promised for its Hydrogen Jobs Plan in early 2025. The funds were reallocated to subsidise the 1.2mn t/yr Whyalla steelworks, which entered administration on 19 February . The associated Office of Northern Water Delivery, which was intended to support the green hydrogen sector in the state's upper Spencer Gulf region with new water pipeline supply, has also been incorporated within the DEM, Koutsantonis said on 1 May. SA's other major hydrogen hub planned at nearby Port Bonython was also overseen by the OHPSA. Development agreements with five companies have been signed for Port Bonython, including with London-based energy company Zero Petroleum for an e-SAF plant . SA is aiming to transition the ageing Whyalla steelworks to develop low emissions iron and steel products, but administrator KordaMentha is yet to finalise a buyer for Whyalla's controlling company OneSteel, which was formerly owned by UK-based GFG Alliance. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Australia's Coalition eyes power, resource funding cuts


02/05/25
News
02/05/25

Australia's Coalition eyes power, resource funding cuts

Sydney, 2 May (Argus) — Australia's federal Coalition opposition has announced it will cut key energy rebates and resource sector subsidies, if elected on 3 May, to reduce forecast future budget deficits. The Peter Dutton-led opposition will cut programs, including the Labor government's A$20bn ($12.8bn) Rewiring the Nation transmission plan, and the A$15bn National Reconstruction Fund aimed at underwriting green manufacturing using domestic minerals. It will also unwind electric vehicle tax concessions to save A$3.2bn, and cancel planned production tax credits for critical minerals processing and green hydrogen estimated to cost A$14.7bn. Combined savings measures will improve the budget's position by A$13.9bn over the four years to 2028-29, the Coalition said on 1 May, cutting debt by A$40bn during the same timeframe. The announcement comes as opinion polls show Australia's next federal government is likely to force one of the two major parties into minority, after a campaign where cost-of-living relief promises have trumped economic reform policy. The centre-left Labor party is more likely than the conservative Coalition to form government at the 3 May poll. It holds a thin majority of just three seats in parliament's main chamber, the House of Representatives, meaning a swing against it would force it to deal with minor parties such as the Greens and independent groupings. Promising a stable government, as Australia emerged from Covid-19, Labor had benefited from a resources boom as Russia's invasion of Ukraine led LNG and coal receipts to skyrocket and China's emergence from lockdowns revitalised its demand for iron ore, which jointly form the nation's main commodity exports. But as markets adjust to a period of protectionist trade policy and predictions of a slowdown in global growth abound, economists have criticised the major parties' reluctance to embrace major reform on areas such as taxation, while continuing to spend at elevated levels post-pandemic. Australia's resource and energy commodity exports are forecast to fall to A$387bn in the fiscal year to 30 June 2025 from A$415bn in 2023–24. The Office of the Chief Economist is predicting further falls over the next five years, reaching A$343bn in 2029-30, lowering expected government revenue from company tax and royalties. Gas The Coalition has pledged a domestic reservation scheme for the east coast, forcing 50-100PJ (1.34bn-2.68bn m³/yr) into the grid by penalising spot LNG cargoes. Australia's upstream lobby has opposed this, but rapidly declining reserves offshore Victoria state mean gas may need to be imported to the nation's south, depending on the success of electrification efforts and an uncertain timeline for coal-fired power retirements. Labor has resisted such further gas interventions , but it is unclear how it will reverse a trend of rising gas prices and diminishing domestic supply, despite releasing a future gas plan last year. The party is promising 82pc renewables nationally by 2030, meaning it will have to nearly double the 2025 year-to-date figure of 42pc. This could require 15GW of gas-fired capacity by 2050 to firm the grid. On environmental policy, narrowing polls mean Labor's likely partners in government could be the anti-fossil fuel Greens and climate-focused independents — just some of the present crossbench of 16 out of a parliament of 151. The crossbench may drive a climate trigger requirement in any changes to environmental assessments, which could rule out new or brownfield coal and gas projects. Coal has been conspicuously absent from policy debates, but Labor has criticised the Coalition's nuclear energy policy as expensive and unproven, while the Coalition has said Labor's renewables-led grid would be unstable and costly because of new transmission requirements. The impact of the US tariff shock that dominated opening days of the month-long election campaign remains unclear. Unlike Canada, Australia is yet to be directly targeted by US president Trump's rhetoric on trade balances and barriers. But the global unease that has set in could assist Labor's prime minister Anthony Albanese, as he presents an image of continuity in an uncertain world economy. Australia's main exposure to Trump tariffs is via China, its largest trading partner and destination for about 35pc of exports, including metal concentrates, ores, coal and LNG. A downturn in the world's largest manufacturer would spell difficult times ahead for Australia, as it grapples with balancing its budget in a normalising commodity market. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Japan’s Saffaire starts supplying SAF to Japan Airlines


02/05/25
News
02/05/25

Japan’s Saffaire starts supplying SAF to Japan Airlines

Tokyo, 2 May (Argus) — Japanese sustainable aviation fuel (SAF) joint venture Saffaire Sky Energy has started supplying its SAF to Japan Airlines (JAL). This is the company's first SAF delivery to an airline. Saffaire is a joint venture launched by Japanese engineering firm JGC, refiner Cosmo Oil and biodiesel producer Revo International. The delivery of SAF to a passenger flight marks a full-fledged launch of a supply chain that enables the continuous mass-production and supply of SAF in Japan, JGC and JAL announced on 1 May. The JAL plane was fuelled with Saffaire's SAF at Kansai International Airport in western Japan's Osaka, and departed to Shanghai, China, on 1 May. Saffaire will continue to supply SAF to JAL and start supplying SAF to other airlines as well, JGC told Argus . Saffaire supplied SAF to Japan Air Self-Defense Force in April. It announced plans to start delivery to domestic airlines JAL and All Nippon Airways (ANA), the US' Delta Air Lines , Finland's Finnair, Taiwan's Starlux Airlines and German logistics group DHL Express in the 2025 fiscal year. JGC also announced a plan on 24 April to start supplying Saffaire's SAF to Taiwan's Eva Air in the 2025 fiscal year. Saffaire operates Japan's first large-scale SAF plant in Cosmo's Sakai refinery in Osaka, with a production capacity of around 30,000 kilolitres/yr. Saffaire uses used cooking oil (UCO) as feedstock for SAF. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Technical issue behind EIA gas report delay: Update


01/05/25
News
01/05/25

Technical issue behind EIA gas report delay: Update

Updates with report, EIA staff reduction. New York, 1 May (Argus) — The US Energy Information Administration (EIA) said a technical issue with third-party software was the reason a key natural gas storage report was delayed today. The Weekly Natural Gas Storage Report , which is closely watched by traders and often moves markets, did not appear until 2pm ET, later than its regular scheduled time of 10:30am ET. Inventories grew by 107 Bcf (3bn m³) in the week ended 25 April, according to the report. The latest delay comes amid a flurry of staff departures at the EIA, the energy statistics arm of the US government, as part of ongoing efforts by President Donald Trump's administration to slash the size of the federal work force and curb spending. Around a third of the agency's 350 staff have taken voluntary buyouts, according to a person familiar with the situation. The staff exodus raises concerns about the agency's ability to gather and report timely data and continue providing independent forecasts covering energy production, stocks, demand and prices. Last month, the EIA delayed its monthly Short-Term Energy Outlook (STEO) by two days to take into account significant changes in markets following Trump's sweeping tariffs. And the EIA's release of its 2025 Annual Energy Outlook did not include the in-depth analysis that usually accompanies the report. It was accompanied by a statement from the Department of Energy that said the report reflects the "disastrous path" US energy production was on under the administration of former president Joseph Biden. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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