Japanese shipbuilders tap decarbonisation potential

  • Market: Emissions, Fertilizers, LPG, Natural gas, Oil products
  • 26/04/21

The global decarbonisation drive is prompting Japanese shipbuilders to speed up development of greener vessels in efforts to ride out a tough market and gain an edge over Chinese and South Korean rivals.

Japanese shipbuilder Tsuneishi Shipbuilding has agreed to a capital tie-up with rival shipbuilder Mitsui E&S Shipbuilding. Tsuneishi is expected to acquire a 49pc share in Mitsui E&S Shipbuilding by October after obtaining regulatory approval.

Tsuneishi said the capital tie-up is expected to enable it to jointly speed up development of next-generation ships using alternative fuels, as well as autonomous vessels. Tsuneishi recently developed an LNG-fuelled Kamsarmax bulk carrier.

The international shipping industry is working to reduce its greenhouse gas (GHG) emissions by at least 50pc by 2050 from 2008 levels, driving a fuel shift among global shipping firms and shipowners.

Japanese joint venture Nihon Shipyard last month completed development of an ammonia-fuelled very-large crude carrier, only a few months after the venture's January launch by shipbuilders Imabari Shipbuilding and Japan Marine United (JMU).

Japan aims to commercialise a zero-carbon emitting vessel by 2028 under a roadmap released last year to realise the global shipping industry's GHG reduction target. The transport ministry this month also began discussions to decarbonise its domestic shipping operations.

Japan's new GHG reduction pledge is also expected to offer new business opportunities for the shipbuilding industry. Japanese premier Yoshihide Suga last week announced a new 2030 commitment to reduce GHG emissions by 46pc from 2013 levels, compared with 26pc previously, prompting Japanese carbon dioxide (CO2) emitting-industries to further speed up decarbonisation efforts.

Shipbuilder JMU has agreed with Japanese wind power developer Venti Japan to discuss the possibility of developing a floating wind mill project offshore northwest Japan's Akita prefecture.

Shin Kurushima Sanoyas Shipbuilding has also obtained in-principle approval from Japanese classification society ClassNK for its newly-developed liquified CO2 transport vessel, aiming to tap growing demand for carbon capture and storage business opportunities. The company was launched earlier this year after Japanese shipbuilder Shin Kurushima Dockyard took over rival Sanoyas Shipbuilding.


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18/06/24

Mexico GHG program still in limbo: MexiCO2

Mexico GHG program still in limbo: MexiCO2

Houston, 18 June (Argus) — Despite Mexico's election of a new president with a background in climate science, it is not clear if the new leadership will revive a stalled national emission trading system (ETS), according to one of the country's top carbon market advocates. President-elect Claudia Sheinbaum, the candidate for the ruling Morena party, won the 2 June election to succeed President Andrés Manuel López Obrador. But it is unclear, ahead of her inauguration on 1 October where Sheinbaum will land on wrangling the emissions program and the country's climate commitments and goals, says Eduardo Piquero, chief executive of MexiCO2, a carbon market advocate and a subsidiary of Mexico's stock exchange. "The only hint we've had so far is during some presidential debates, she mentioned she was very keen on climate change and was going to act on Mexico's commitment," Piquero said. Mexico launched a pilot ETS in 2020, with plans to launch a formal national program in 2022. The pilot-phase covered facilities in the energy and industrial sectors that emitted more than 100,000 metric tonnes of CO2 per year, which received allowances at no cost. More than two years after the expected launch of a national market, a formal rollout remains in limbo, primarily because of a lack of action by the government under López Obrador, who Piquero credits with dismantling much of the program along with Mexican environment ministry Semarnat, which oversaw the program. Putting the program and Semarnat back together could take between 2-3 years, Piquero says. Sheinbaum, the former mayor of Mexico City and a climate scientist, has not yet said what her plans are, if any, for a federal emissions trading scheme. A federal ETS will also require new legislation, given the pilot expired after 36 months, and regulators will need to convince major covered participants such as state-owned oil and gas company Pemex and power producer CFE to take part in the official program. The government will also need to reconcile how the ETS will work with the country's state and local programs, such as state carbon taxes in Durango, Guanajuato, San Luis Potosi, Querétaro, Zacatecas, Tamaulipas, and Estado de México, along with others in-development. Currently, Mexico has a goal of a 35pc reduction in greenhouse gas (GHG) emissions by 2030 from a 2000 baseline. Despite a lack of policy specifics, Sheinbaum pledged to deliver on commitments of her predecessor for items like infrastructure development in southeast Mexico for new natural gas and gas-fired power generation — moves that may not support resumption of the ETS and limiting the nation's emissions. "The only way Mexico can measure and control its emissions is through an ETS," Piquero said. Sheinbaum is set to announce government appointments this week, which would include her choice to head Semarnat, a choice that will color discussions on the future for the ETS program. Piquero expects the job will go to one of two candidates: Marina Robles García, secretary of the environment of Mexico City, or Jose Luis Samaniego, a division chief with the UN Economic Commission for Latin America and the Caribbean. By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Phillips 66 targets high Rodeo runs


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18/06/24

Phillips 66 targets high Rodeo runs

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Amtrak used 1.2mn USG renewable diesel in 2023


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18/06/24

Amtrak used 1.2mn USG renewable diesel in 2023

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US asphalt imports to Brazil reach 5-year high


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18/06/24

US asphalt imports to Brazil reach 5-year high

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Q&A: LGE calls for more EU backing as Congress begins


18/06/24
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18/06/24

Q&A: LGE calls for more EU backing as Congress begins

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