Ensuring availability of bunkering options for multiple fuels at key ports is the most viable approach to supporting an energy transition in the shipping industry and the establishment of green shipping corridors between key ports, said participants at the Argus Green Marine Fuels conference in Singapore.
The US/Israel-Iran war and the subsequent disruptions to conventional bunker fuel supplies from the Middle East has shown that availability of a wider range of fuels will make shipowners less likely to be caught out by supply disruptions, especially for fossil fuels.
The port of Rotterdam is preparing for a multi-fuel future like Singapore, said the port's program manager for sustainable transport Naomi van den Berg. "We see it has having a large part to play in moving towards a sustainable fuels future," she said.
But infrastructure at ports must be available to support distribution of alternative fuels such as LNG, methanol and ammonia. Ports in Hong Kong are looking to mainland China for support in supplying alternative fuels, said Amy Chan, deputy secretary for transport and logistics for the Hong Kong Special Administrative Region government. Hong Kong is set to announce a partner for its own shipping green corridor later this year, Chan said.
LNG remains by far the fuel of choice, based on order books for vessels. But most shipowners are still opting for dual use or considering triple-use engines to ensure they have the flexibility to refuel at ports that offer the best value fuel. The choice of LNG also means shipowners have the option to switch to bio-LNG.
Availability of fuels and pricing remain key concerns, particularly in a challenging market, said Rohit Radhakrishnan, chair of the marine fuels committee in the Singapore Shipping Association. Investment in infrastructure is key to ensuring progress and while there are some existing facilities to support the transition to a multi-fuel future, there are still not sufficient infrastructure to fulfill the shipping industry's needs, said conference participants.
