Singapore eyes growing role in alternative marine fuels
Singapore is looking to play a bigger role in the alternative marine fuels industry, ahead of the first methanol bunkering operations scheduled for this year's third quarter.
"Green" methanol is regarded by some industry participants as the most viable renewable fuel that could enable the shipping industry to meet the International Maritime Organisation's emissions targets for 2050.
Trading firm Trafigura sees potential in marine fuels derived from green hydrogen such as methanol and ammonia, while Shell also sees "more sophisticated biofuels" such as bio-methanol, to be a longer term decarbonisation pathway.
Europe and the Americas have already made significant headway in this area, with ports in Europe readying themselves to operate methanol ship-to-ship bunkering, while Trinidad and Tobago is looking to develop a methanol bunkering facility.
Joint venture Proman Stena Bulk completed the first barge-to-ship methanol bunkering operation on the US Gulf coast earlier this year. Canada's Methanex and Japanese shipping company Mitsui OSK Lines also completed a vessel voyage from Geismar, Louisiana to Antwerp, Belgium on bio-methanol.
While the uptake of alternative marine fuels in Asia has been slower, Singapore has taken steps in developing the sector.
The Singapore-based Global Centre for Maritime Decarbonisation completed two bunkering trials with different supply chains of biofuels in February 2023. The trials utilised used cooking oil methyl ester (Ucome) blended with very-low sulphur fuel oil and Ucome blended with high-sulphur fuel oil.
The Maritime and Port Authority of Singapore (MPA) organised a workshop for hazard identification and operations during 18-19 May 2023, aimed at ensuring the safe handling of methanol fuel in Singapore. More than 40 participants from various methanol bunkering partners attendance, representing "a key milestone for MPA to ensure that Singapore is ready for methanol bunkering", it said.
The MPA last year developed a provisional national quality standard for marine biofuels, as well as a framework outlining conditions for biofuel supplies for licensed bunker fuel suppliers.
Favoured location
Singapore remains a favoured location for bunkers and has made progress in supplying alternative fuels, the MPA announced earlier this year. The city-state registered 47.9mn t of bunker sales in 2022. While total volumes fell by 4.3pc from a year earlier it included about 140,000t of biofuel blends over more than 90 biofuel bunkering operations, which surpassed the 16,000t in LNG bunker sales.
The marine fuels sector offers potential methanol demand growth in the coming years, with consumption from other derivative chemical sectors becoming stagnant.
Related news posts
Singapore's MPA, IEA unite on maritime decarbonisation
Singapore's MPA, IEA unite on maritime decarbonisation
Singapore, 17 April (Argus) — The Maritime and Port Authority of Singapore (MPA) and the IEA have signed an initial deal to push the transition to zero and near zero emission fuels, while working on technology as well as digitalisation to meet the maritime decarbonisation agenda. The agreement, signed by MPA chief executive Teo Eng Dih and IEA executive director Faith Birol, was announced at the Singapore Maritime Week 2024 (SMW) this week. "Greater international collaboration in maritime and energy industries is critical for international shipping to meet international decarbonisation goals," Teo said. "Shipping is one of the hardest sectors to decarbonise and we need to spur development and deployment of new technologies to slow and then reverse the rise in its emissions," said IEA chief economist Tim Gould. "This will require strong collaboration at a national and international level." Training programmes will be built to support the adoption of new fuels. There will also be partnerships made towards fuel-related projects and initiatives such as the International Maritime Organisation-Singapore NextGen project. The IEA plans to open its first regional co-operation centre in Singapore, which will be its first regional office outside of its headquarters in Paris, France. By Mahua Chakravarty Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan’s Idemitsu builds stake in refiner Fuji Oil
Japan’s Idemitsu builds stake in refiner Fuji Oil
Tokyo, 17 April (Argus) — Idemitsu has agreed to buy an additional stake in fellow Japanese refiner Fuji Oil from domestic power producer Jera, adding to their existing partnership. Idemitsu on 16 April said it will buy Jera's entire 8.75pc share of Fuji, raising its stake to 21.79pc, for ¥2.5bn ($16.2mn). It is unclear when the companies will complete the deal. Jera declined to disclose the reasons for selling its stake. Idemitsu in March also bought domestic petrochemical producer Sumitomo Chemical's stake in Fuji to boost its share to 13.04pc from 6.58pc, becoming its main shareholder. It aims to further optimise fuel oil production and sales including refinery operations, while promoting decarbonisaton of its businesses. Idemitsu is enhancing its partnership with Fuji in the face of shrinking domestic oil and petrochemical demand and growing consumption in overseas, especially in southeast Asia. Idemitsu owns the 190,000 b/d Chiba refinery in the Keiyo industrial complex in east Japan's Chiba prefecture where Fuji operates the 143,000 b/d Sodegaura refinery. Their refineries are connected to Sumitomo Chemical's Chiba plant. Idemitsu's refineries also include the 150,000 b/d Hokkaido in the northernmost prefecture of Hokkaido, the 160,000 b/d Aichi in Aichi prefecture in central Japan and the 255,000 b/d Yokkaichi in Mie prefecture in the country's west. Idemitsu's subsidiary Toa Oil operates the 70,000 b/d Kawasaki refinery in east Japan's Kanagawa prefecture. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US Gulf lowest-cost green ammonia in 2030: Report
US Gulf lowest-cost green ammonia in 2030: Report
New York, 16 April (Argus) — The US Gulf coast will likely be the lowest cost source of green ammonia to top global bunkering ports Singapore and Rotterdam by 2030, according to a study by independent non-profits Rocky Mountain Institute and the Global Maritime Forum. Green ammonia in Singapore is projected to be sourced from the US Gulf coast at $1,100/t, Chile at $1,850/t, Australia at $1,940/t, Namibia at $2,050/t and India at $2,090/t very low-sulphur fuel oil equivalent (VLSFOe) in 2030. Singapore is also projected to procure green methanol from the US Gulf coast at $1,330/t, China at $1,640/t, Australia at $2,610/t and Egypt at $2,810/t VLSFOe in 2030. The US Gulf coast would be cheaper for both Chinese bio-methanol and Egyptian or Australian e-methanol. But modeling suggests that competition could result in US methanol going to other ports, particularly in Europe, unless the Singaporean port ecosystem moves to proactively secure supply, says the study. In addition to space constraints imposed by its geography, Singapore has relatively poor wind and solar energy sources, which makes local production of green hydrogen-based-fuels expensive, says the study. Singapore locally produced green methanol and green ammonia are projected at $2,910/t and $2,800/t VLSFOe, respectively, in 2030, higher than imports, even when considering the extra transport costs. The study projects that fossil fuels would account for 47mn t VLSFOe, or 95pc of Singapore's marine fuel demand in 2030. The remaining 5pc will be allocated between green ammonia (about 1.89mn t VLSFOe) and green methanol (3.30mn t VLSFOe). Rotterdam to pull from US Gulf Green ammonia in Rotterdam is projected to be sourced from the US Gulf coast at $1,080/t, locally produced at $2,120/t, sourced from Spain at $2,150/t and from Brazil at $2,310/t. Rotterdam is also projected to procure green methanol from China at $1,830/t, Denmark at $2,060/t, locally produce it at $2,180/t and from Finland at $2,190/t VLSFOe, among other countries, but not the US Gulf coast . The study projects that fossil fuels would account for 8.1mn t VLSFOe, or 95pc of Rotterdam's marine fuel demand in 2030. The remaining 5pc will be allocated between green ammonia, at about 326,000t, and green methanol, at about 570,000t VLSFOe. Rotterdam has a good renewable energy potential, according to the study. But Rotterdam is also a significant industrial cluster and several of the industries in the port's hinterland are seeking to use hydrogen for decarbonisation. As such, the port is expected to import most of its green hydrogen-based fuel supply. Though US-produced green fuels are likely to be in high demand, Rotterdam can benefit from EU incentives for hydrogen imports, lower-emission fuel demand created by the EU emissions trading system and FuelEU Maritime. But the EU's draft Renewable Energy Directive could limit the potential for European ports like Rotterdam to import US green fuels. The draft requirements in the Directive disallow fuel from some projects that benefit from renewable electricity incentives, like the renewable energy production tax credit provided by the US's Inflation Reduction Act, after 2028. If these draft requirements are accepted in the final regulation, they could limit the window of opportunity for hydrogen imports from the US to Rotterdam to the period before 2028, says the study. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Overseas companies get US FDA polymers certifications
Overseas companies get US FDA polymers certifications
Houston, 15 April (Argus) — European and Asian companies have received a spate of FDA no objection letters (NOL) this year, a growing indication of overseas interest in the US recycled polymers market. FDA no objection letters allow recyclers to sell their recycled plastic pellets for use in limited food and drink-grade applications. Ultra-Poly and Circulus Holdings are the only two US-based companies who have received NOLs so far in 2024, out of a total of 14 different companies. Circulus received approval to use recycled low density polyethylene (LDPE) from its Ardmore, Oklahoma, facility for food contact in January, and Ultra-Poly received approval to use its recycled injection-molded polypropylene for food contact in March. Austrian recycler Borealis received two NOLs this year from the FDA, for its polypropylene and its high-density polyethylene (HDPE), and German recycler Gneuss Kunststofftechnik has received three, for HDPE, polyethylene terephthalate (PET), and polystyrene (PS). Italian chemicals company Versalis received approval for its recycled PS. Recyclers from East and Southeast Asia made up the rest of this year's approvals so far, for PP, PS, and HDPE. Recipients include the Pashupati Group from India, China-based Shanghai SmartLoop Industrial, and the Japan-based DIC Coporation. Growing imports from overseas greatly increased supply of recycled material in 2023 and 2024, but some domestic producers fear that the lower pricing from some overseas manufacturers will threaten their ability to stay in business. By Zach Kluver Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more