Bunker biofuel pilot projects launch in Asia

Market: Biofuels, Oil products
18/12/20

The marine industry has shifted its attention to accommodating the International Maritime Organisation's (IMO) greenhouse gas (GHG) strategy, after having to adjust to the Covid-19 pandemic and the implementation of the IMO's global sulphur cap in marine fuels.

The IMO's goals consist of reducing carbon emissions in the maritime sector by 40pc by 2030 and by at least 50pc by 2050 from 2008 levels.

Biofuels, such as biodiesel and ethanol, are another type of alternative shipping fuel that could meet the IMO's decarbonisation goals. They emit negligible sulphur and carbon emissions, while they can easily be blended with conventional bunker fuels.

Several large container shipping lines are carrying out pilot studies to produce second generation biofuels. Danish shipping firm Maersk launched last year a type of biodiesel derived from used cooking oil (UCO). French shipping firm CMA CGM has a partnership with Shell to supply some of its fleet with a similar fuel, which is a blend of 80pc very-low sulphur fuel oil (VLSFO) and 20pc biofuel made of UCO.

But the handling of fuels derived from biomass is largely unfamiliar to shipowners and questions remain especially regarding scalability and availability. Some biofuels can also not be considered "drop-in" fuels as existing vessels' engines will need to be modified extensively to be able to use them, which means they are typically only considered as a viable alternative for newbuilds.

Biofuels are more expensive than conventional fuels and so depend on governmental incentives and levies on carbon fuels to compete on price. Such support frameworks mainly exist in Europe and North America but remain largely absent in Asia.

The Maritime and Port Authority of Singapore in 2017 supported a letter of intent between UK-Australian mining company BHP and Dutch biofuels producer GoodFuels to support a biofuels pilot project. Singapore shipowner Eastern Pacific Shipping on 15 October this year appointed GoodFuels to supply one of its Medium Range tankers with biofuel bunkers.

A group of South Korean companies including Hyundai, Korea Bio Energy, Korea Shipbuilding and others, signed an initial deal in August this year to promote the adoption of bio heavy oil in shipping, produced from animal and plant oil and residues from biodiesel production.

South Korea's SK Chemicals has also said it will look into increasing its biofuel output by 50pc to accommodate rising demand for biofuels from the shipping sector. The company already created blends of biodiesel with conventional fuels to produce low-sulphur fuel oil to meet the IMO's 2020 0.5pc sulphur cap in marine fuels that took effect on 1 January this.

Japanese shipping firm Mitsui OSK Lines in December this year carried out a biodiesel trial on one of its tugboats at the port of Nagoya. The fuel is a blend of UCO and algae derivative from biotechnology venture company Euglena. GoodFuels last year delivered biofuels on board a bulk carrier owned by Japanese shipping firm NYK.

China, one of the world's largest biofuel and ethanol producers, has yet to consider renewable fuels as part of its low-carbon shipping strategy as it remains focused for now on boosting its VLSFO output.

By Sammy Six

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Cop: EU, four countries commit to 1.5°C climate plans

Baku, 21 November (Argus) — The EU, Canada, Mexico, Norway and Switzerland have committed to submit new national climate plans setting out "steep emission cuts", that are consistent with the global 1.5°C temperature increase limit sought by the Paris Agreement. The EU and four countries made the pledge at the UN Cop 29 climate summit in Baku, Azerbaijan today, and called on other nations to follow suit — particularly major economies. Countries are due to submit new climate plans — known as nationally determined contributions (NDCs) — covering 2035 goals to the UN climate body the UNFCCC by early next year. The EU, Canada, Mexico, Norway and Switzerland have not yet submitted their plans, but they will be aligned with a 1.5°C pathway, EU climate commissioner Wopke Hoekstra said today. The Paris climate agreement seeks to limit the global rise in temperature to "well below" 2°C and preferably to 1.5°C. Canada's NDC is being considered by the country's cabinet and will be submitted by the 10 February deadline, Canadian ambassador for climate change Catherine Stewart said today. Switzerland's new NDC will also be submitted by the deadline, the country's representative confirmed. Pamana's special representative for climate change Juan Carlos Monterrey Gomez also joined the press conference today. Panama, which is designated as carbon negative, submitted an updated NDC in June. It is planning to submit a nature pledge, Monterrey Gomez said. "It is time to streamline processes to get to real action", he added. The UK also backed the pledge. The UK announced an ambitious emissions reduction target last week. The UAE — which hosted Cop 28 last year — released a new NDC just ahead of Cop 29, while Brazil, host of next year's Cop 30, released its new NDC on 13 November during the summit. Thailand yesterday at Cop 29 communicated a new emissions reduction target . Indonesia last week said that it intends to submit its updated NDC ahead of the February deadline, with a plan placing a ceiling on emissions and covering all greenhouse gases as well as including the oil and gas sector. Colombia also indicated that its new climate plan will seek to address fossil fuels, but it will submit its NDC by June next year . By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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20/11/24

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20/11/24

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20/11/24

Tupras agrees more than 500kt 2025 bitumen tender sales

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