Maersk leapfrogs LNG to net zero marine fuels
Danish shipping firm Maersk will not be using transitional marine fuels, such as LNG, to reduce its greenhouse gas emissions but instead will leapfrog directly to net zero fuels: biodiesel, bio-methanol, e-methanol, lignin fuels and green ammonia.
"Our research shows that net zero technologies are available," the company said. Maersk is "very concerned with levels of methane [a type of greenhouse gas] emissions" from LNG and the risk of tying investments on marginal CO2reductions rather than transformation to real net zero-emissions.
The company deems lignin fuels, which are derived from plant material, as potentially the most price-competitive net zero fuel with the lowest price estimate, almost on a par with conventional marine fuels. Bio-methanol and e-ethanol are already in use as a marine fuel. Biodiesel can be used as drop-in fuel in fuel oil.
But a key limitation for using biodiesel, bio-methanol and lignin, are producing it at scale. Biodiesel prices are affected by high demand from competing industries. Future prices of green ammonia and e-methanol depend on the cost of renewable electricity and maturity of electrolyser technology.
Maersk estimates that decarbonizing marine fuels will lead to doubling the price of bunkers, which in turn would lead to about a 20pc increase in container shipping rates.
In 2020, Maersk burned 10.37mn t of fuel oil for bunkering, down from 11.17mn t in 2019 and 12.02mn t in 2018. The company attributed the drop to improved vessel efficiency and also fewer vessels in operation in the second and third quarters of 2020. The company also burned 32,000t of biofuels. Maersk reduced its CO2 emissions by 46.3pc by 2020 or 33.90mn t from 2008 baseline. The International Maritime Organization (IMO) requires that vessels reduce CO2 emissions by 40pc by 2030 from 2008, placing Maersk well ahead of IMO's regulation.
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LNG Energy eyes sanctions-hit Venezuela oil blocks
LNG Energy eyes sanctions-hit Venezuela oil blocks
Caracas, 25 April (Argus) — A Canadian firm plans to revive two onshore oil blocks in Venezuela, but the conditional deals signed with struggling state-owned PdV come just as the US is reinstating broad sanctions on the South American country. LNG Energy Group's Venezuela unit agreed two deals with PdV to boost output in five fields in the Nipa-Nardo-Niebla and Budare-Elotes blocks, which produce about 3,000 b/d of light- to medium-grade crude, the company said on Wednesday. The Canadian company, which operates in neighboring Colombia, would receive 50-56pc of production of the blocks. Venezuela's oil ministry declined to comment. But finalizing the contracts depends on providing required investment to develop the fields within 120 days of the contract signing on 17 April, LNG Energy said. And the signing came on the same day as the US reimposed oil sanctions on Venezuela and gave most companies until 31 May to wind down business. LNG Energy Group said it intends to comply with existing and upcoming US sanctions, noting that the conditional contracts were executed within the terms of the temporary lifting of sanctions — general license 44 — but it will abide by the new license 44A. The reimposition of US sanctions on Venezuela prohibits new investment in the country's energy sector, at the threat of US criminal and economic penalties. "The company will assess in the coming days the applicability of license 44A to its intended operations in Venezuela and determine the most appropriate course of action," LNG Energy said. "The company intends to operate in full compliance with the applicable sanctions regimes." The two blocks are in the adjacent Anzoategui and Monagas states, part of the Orinoco extra heavy oil belt. Most of Venezuela's output is medium- to heavy-grade crude. Both PdV and Chevron have drilling rigs working in those two states, in separate workover and drilling campaigns. Venezuela is now producing above 800,000 b/d, after the US allowed Chevron to increase production and investment under separate waivers. By Carlos Camacho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
MDBs, parties must deliver on finance: Cop 29 president
MDBs, parties must deliver on finance: Cop 29 president
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US economic growth slows to 1.6pc in 1Q
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