ALTERNATIVE FUELS

PEAKS AND TROUGHS

As shipowners and operators have pushed ahead with ship orders including duel fuel LNG propulsion, there are fears that the market has already peaked

The recent run of newbuilding capesize bulk carrier orders featuring dual-fuel liquefied natural gas (LNG) propulsion may have peaked, according to research and forecasting company Maritime Strategies International.

The fall-off in interest in LNG-fuelled ships raises concerns over their long term viability against tightening regulation and growth in availability of ammonia and methanol-ready dual fuel engines.

Concern over the shape of future lowcarbon regulations are partly to blame for muted dry bulk newbuilding orders during 2021, despite bulkers registering the highest average annual earnings since 2007/08.

Contracts declined sharply over the second half of last year and have all but disappeared in 2022: for the year to March, just seven new dry bulk contracts have been reported.

One of the most notable trends from last year was a sharp uptick in LNG’s share of contracts – 31 of the 77 capesize vessels ordered were dual-fuelled ships. Most of these were built on the back of long-term charter agreements between miners and shipowners, stretching over a period of between five and 10 years.

MSI’s Q1 Dry Bulk report notes that there does now seem to be an emerging consensus on future fuels for shipping, converging on ammonia or methanol, which may have the effect of supressing contracting if a workable low-carbon solution is deemed to be just around the corner. It suggests that the ordering of ships with dual-fuel LNG engines may have already peaked, as a commercial solution for ammonia and methanol fuels looks to be edging closer.

“Given the commitments by the major mining companies already in place, the recent spate of capesize dual-fuel contracts may have already run its course,” says AlexStuart Grumbar, dry bulk analyst at MSI. “Owners ordering dual-fuelled ships with an economic life of more than 15 years will also be mindful of the expected market conditions towards the end of the 2030s and the

composition of the fleet. The question is how much will LNG-fuelled ships be penalised should a majority of the fleet by then be using non-fossil based zerocarbon fuels.”

Many of the early designs for ammonia as fuel have so far originated from Japan: Sumitomo Corporation in conjunction with Oshima Shipbuilding is developing an ammonia fuelled Kamsarmax bulker, with aim of taking first delivery by 2025. Another compelling solution has been proposed by Nippon Yusen Kaisha and Elomatic Oy, which have just completed the development of a concept designs for an LNG- fuelled but ammonia-ready post-Panamax bulk and are also aiming to construct the vessel by 2025. For more information on the MSI Dry Bulk Q1 2022 report, Demand Destruction, visit: msiltd.com

NUCLEAR DECARBONISING

A new report from Core Power shows that the US now has the ideal opportunity to demonstrate to the world the clear benefits of advanced nuclear technologies to decarbonise maritime transportation in its own domestic market.

The US maritime trade sector is a $50bn market that employs around 150,000 people, transporting goods on the Great Lakes, up and down the three coasts as well as transporting goods on the major US inland waterways.

Airborne emissions from US domestic shipping stand at more than 60m tonnes of CO2 per year from the burning of heavy fuel oil as well as liquefied natural gas and marine gas oil.

Tony Huston, US country head at Core Power, says: “The transport of goods on the US coasts, Great Lakes and internal waterways offers strong proof of concept for nuclear powered decarbonisation without the complex regulatory hurdles of moving reactors between nation-states.”

The US has a long record of using nuclear power in its navy with an exemplary safety record. This has led to increased interest in the use of nuclear power for civilian vessels, particularly from US special presidential envoy for climate John Kerry, reflecting on his own naval career during COP26 in Glasgow last year.

Huston says: "Kerry made it clear that the US nuclear navy has operated for almost 70 years without incident and has the best-trained seafarers in the world. We believe the deployment of commercial nuclear vessels would offer an entirely new career path for these seafarers once they leave the Navy. STEM qualified students from the US college system seeking wellpaid careers in an exciting industry could also be recruited to supplement the skills of the highly trained ex-US Navy personnel."

Advanced nuclear ships would be true zero-emission vessels and be immune to carbon pricing as it is introduced to fossil fuels. Large ships that consume close to 500,000 tons of fuel over a lifetime, emit more than 1.5m tons of CO2 whilst in service. With a carbon levy of $200 per ton, these ships would see an increased OPEX of $300m over a lifecycle. Advanced nuclear-powered ships would save this cost, making them highly competitive. "The US would be in a prime position to become an exporter of transformative advanced nuclear technology for the maritime sector to trusted partner nations like the UK, allowing the US to create a valuable export market for technology built by highly skilled American workers. By embracing the possibilities of advanced nuclear shipping, the US now can reinvigorate its shipbuilding and maritime sector putting itself at the forefront of one of the world’s most important industries," Huston concludes. Read the full report at: corepower.energy/report/2022-02

UKRAINE IMPACT

As Europe struggles to build energy security in response to Russia’s invasion of Ukraine, uncertainty looms on many fronts. One question is whether by turning its back on Russian oil and gas, will Europe speed up or slow down its transition to cleaner energy?

Class society DNV’s Energy Transition research team has looked into this complex question using DNV’s forecast model to quantify the impact.

Its conclusion is that improved energy security does not come at the cost of decarbonisation and there is likely to be a small acceleration in Europe’s energy transition. To read DNV’s analysis on how the ongoing war is likely to impact Europe’s energy transition in the short, medium, and long term, visit: tinyurl.com/DNVUkraineReport

BIOFUEL PIONEER

GoodFuels is expanding its activities into the Asia-Pacific region with the opening of a Singapore office. This new permanent presence in the region will enable GoodFuels to respond to fast-growing global demand for its advanced sustainable biofuels, which reduce greenhouse gas emissions from shipping by up to 90%.

The Singapore office will be GoodFuels’ second office and its first outside of Europe. From the new office, GoodFuels will source and deliver its sustainable advanced biofuels directly to one of the world’s most important shipping and marine fuel hubs. The announcement marks the arrival in Asia of GoodFuels’ unique technology and biofuels blends, which “drop in” conventional tanks to cut carbon emissions without requiring any alterations to the fuel infrastructure or marine engines.

Singapore was chosen as the target for GoodFuels’ first international expansion because of its importance to the global shipping industry and its leading position as a key bunkering hub, with mature bunkering infrastructure that will support the delivery of marine biofuel.

The new Singapore office will be led by Jing Xieng JX Han, GoodFuels’ newly appointed general manager for Asia-Pacific.

GoodFuels’ advanced biofuels are produced from feedstocks which are certified as 100% waste or residue, including sawdust, crude tall oil (a by-product of wood pulp manufacture), tallow, sewage sludge and used cooking oils from industrial applications.

Over the past seven years, GoodFuels has completed hundreds of bio-bunkerings with companies from around the globe and on a

variety of vessel types, including dry bulk, container ships, tankers, and ro-ro vessels.

Dirk Kronemeijer, chief executive of GoodFuels, says: “The launch of this first regional office is a major milestone for GoodFuels, strongly setting us up in one of the most important shipping hubs. This is a unique opportunity to have an even greater positive impact on the environment, by scaling up our sustainable biofuels to enable more shipping companies to reduce their greenhouse gas emissions today.”

DUEL-FUEL VLCC

AET, an owner and operator of maritime transportation assets and specialised services, has named its latest vessel, which is also one of the world’s first dual-fuel and among the most environmentally friendly VLCCs in the market.

Eagle Valence is the first of two dual-fuel VLCCs built for long-term charter to Chartering and Shipping Services, a wholly owned subsidiary of TotalEnergies.

The 300,000dwt tanker was unveiled earlier in the year at a virtual naming ceremony held at the Samsung Heavy Industries Shipyard in Geoje, South Korea.

Making the announcement, Rajalingam Subramaniam, chief executive of AET and COO of MISC Berhad says: “AET and TotalEnergies both have clear ambitions to decarbonise shipping and we pushed boundaries to move towards a lower carbon future when we collaborated to build two of the first dual-fuel VLCCs in 2020. I am very proud that we are now setting a new benchmark for the maritime industry with our state-of-the art Eagle Valence, which is one of the first and among the most environmentally friendly VLCCs in the market.

Datuk Yee Yang Chien, president/ group CEO of MISC Berhad and chairman of AET says:“Our investment in dual-fuel vessels illustrates our commitment as the MISC Group, and in this instance through AET, to invest in solutions that contribute to the decarbonisation of the shipping sector over the long-term. We believe that LNG is the best fuel option available immediately for use while we continue our on-going efforts by leading, collaborating and contributing to other long-term initiatives that we hope will bring us closer to achieving a fully decarbonised sector.”

“Tremendous growth is expected in the offshore wind market over the next decades”

DNV SIGNS UP FOR CSOVS

At the Nor-Shipping trade fair in April, DNV signed a classification contract for two new commissioning service operation vessels (CSOVs), ordered by the Norwegian pure play offshore wind operator Edda Wind.

The vessels will be built at Colombo Dockyard in Sri Lanka and are designed for service operations during the commissioning and operation of offshore wind farms and are prepared for hydrogen operations. They are scheduled to be delivered under the Norwegian Flag in January 2024 and July 2024.

Advanced CSOVs that offer both next-generation technology and comfortable accommodation are an important part of the value chain in a booming offshore wind segment that is expected to grow as the demand for renewable energy soars over the coming decade.

The new additions to the Edda Wind fleet will function as mother ships for wind turbine technicians as they perform commissioning and maintenance work on wind turbines, with accommodations for up to 97 technicians and 23 marine crew.

The planned hydrogen fuel system will be based on the liquid organic hydrogen carrier (LOHC) design by Hydrogenious LOHC Maritime AS and prepares the vessels for future zeroemission operations.

“Ordering these purpose-built CSOVs will further strengthen Edda Wind’s leading position within offshore wind, and we are very pleased to have DNV as our classification partner on this journey,” says Håkon Vevang, chief commercial Officer of Edda Wind. “Tremendous growth is expected in the offshore wind market over the next decades, and the move is a clear signal of Edda Wind’s ambition

The class contact signing at Nor-Shipping: (L-R Håkon Vevang, Chief Commercial Officer of Edda Wind, Tuva Flagstad-Andersen, Regional Manager, Region North Europe at DNV, and Lal Hettiarachchi, General Manager (Projects engineering) at Colombo Dockyard)

to be a world-leading provider in this segment and our commitment to ensuring that our newbuilds are environmentally friendly.”

The CSOVs will measure 89.3m and will have accommodation for up to 97 technicians and 23 marine crew

EMETHANOL INVESTMENT

Liquid Wind, a leading eMethanol producer, has undertaken a lifecycle assessment that concludes that eMethanol produced from renewable energy sources can have carbon equivalence of up to 94% lower than fossil fuels.

The results are contained in a White Paper produced by Liquid Wind. The paper’s conclusion reinforces calls for maritime regulators to assess the carbon impact of marine fuels on a lifecycle basis, in the process providing the means to dramatically lower the carbon emissions from merchant shipping.

To meet the growing demand for carbon neutral fuel and the need to reduce CO2 emissions, Liquid Wind is developing FlagshipONE, a commercialscale renewable eMethanol facility that will capture CO2 emissions from a biomass combined heat and power plant.

To quantify the environmental benefit, Liquid Wind performed an internal lifecycle analysis to determine the emissions of the eMethanol to be produced at FlagshipONE, considering all stages of the eMethanol lifecycle and identifying the greenhouse gas reduction potential compared to conventional fuels.

The well-to-gate emissions of FlagshipONE eMethanol (life-cycle emission when leaving the production facility) are relatively small, at around -1.3 kg CO2eq per kg of eMethanol produced. About -1.4 kg of CO2 is from capturing the carbon and is credited as negative emissions.

When the scope is expanded to include the “use phase”, well-towake, the emissions of transport and combustion are considered. The captured CO2 is re-emitted, which results in a net positive climate change potential of about 5gCO2eq/MJ.

“Together with our consortium partners, Liquid Wind is demonstrating the potential that sustainable marine fuels can make to reducing carbon emissions when carbon is considered on a lifecycle basis,” says Claes Fredriksson, CEO and founder of Liquid Wind. ”With further regulatory alignment, marine fuel buyers and end users can understand how to make their operations cleaner and greener and demonstrate that to their stakeholders.”

HYDROGEN MOU

Bureau Veritas, Vinssen and the EcoLabs Centre of Innovation for Energy at the Nanyang Technological University, Singapore (NTU Singapore) have signed a Memorandum of Understanding with plans to demonstrate commercialisation of eco-friendly marine propulsion system technology and products in Singapore and Korea.

Under the agreement, BV, Vinssen and EcoLabs, which is based in the university’s Energy Research Institute, will be working together to develop a pilot project in Singapore demonstrating hydrogen-based power generation by discovering in-depth knowledge about hydrogen to be used as an eco-friendly marine fuel by integrating hydrogen fuel cell systems on harbour crafts.

David Barrow, vice-president of Bureau Veritas South Asia Zone, Marine & Offshore says: “Bureau Veritas is glad to have the industrial expert, Vinssen, and a world-renowned university, NTU Singapore, working together hand in hand to come up with solutions for the changing industry needs. With strong industrial collaboration, BV shall continue to provide turn-key services for marine environment protection and innovation towards sustainable maritime.”

BV’s new Centre of Excellence - innovation and Centre for Alternative and Renewable Energy (iCARE), will be leading the initiative and working with Vinssen and NTU’s EcoLabs to produce commercially feasible studies that could empower organisations to take up sustainable growth and work towards a greener future together.

“With strong industrial collaboration, BV shall continue to provide turn-key services for marine environment protection”

Bureau Veritas approves Energy Observer Developments REXH2®, a turnkey electro-hydrogen power generator for the supply of low carbon electricity on board ships

POWER GENERATION

Bureau Veritas recently approved the second generation of the REXH2® developed by Energy Observer Developments (EODev), a turn-key power generator for the supply of lowcarbon electricity on board ships.

The hydrogen PEM fuel cell at its heart makes it possible to meet energy needs ranging from 70 kW to about one megawatt when several REXH2® are installed in parallel.

The Approval in Principle (AIP) obtained by EODev for its REXH2® fuel cell design follows a thorough design review against the latest classification rules and regulations, assessing its compliance with the IGF Code specific safety regulations for vessels using gases and low-flashpoint fuels. It also follows the recently released BV NR 547, applicable to the use of fuel cells onboard ships.

Collaborating closely through all the stages of development of the final product, Bureau Veritas and EODev achieved the AIP in record time to allow the start of serial production of the much-awaited marine power generator. The procedure to obtain Type Approval on the definitive version of the new REXH2® has already started and is expected to be completed by the end of 2022.

Both EODev’s and Bureau Veritas’ missions are to ensure the safe implementation of hydrogen technologies and promote the use of hydrogen as an energy source to support the decarbonisation of the shipping industry. BV and EODev will therefore continue to cooperate on the following activities: » Perform preliminary assessment of new marine hydrogen power solutions developed by EODev » Share technical expertise regarding hydrogen technologies to enable ramp-up of hydrogen usage onboard ships » Leverage relevant Class rules and

Regulatory frameworks.

“The procedure to obtain Type Approval on the definitive version of the new REXH2 has already started”

FERRY FIRST

The southern hemisphere’s first fully electric, carbon fibre commuter ferry has successfully completed its inaugural round trip with a Thordon seawater lubricated propeller shaft arrangement supplied by New Zealand’s Henley Engineering.

Ika Rere, Mãori for flying fish, joined the East by West fleet in December, operating the company’s Wellington to Eastbourne route.

Commenting on the ferry’s first trip, between West Queen’s Wharf and Days Bay, Henley Engineering managing director, Mark Power, says: “Ika Rere runs like a Tesla Model S. It’s fast, efficient, smooth and quiet. It is a truly inspiring vessel. We hope to be involved in more projects like this.”

Auckland based Henley Group – Thordon’s authorised distributor for New Zealand – designed and supplied the vessel’s driveshafts aft of twin 325kW battery-powered electric motors.

The scope of supply included a pair of Thordon SXL seawater lubricated propeller shaft bearings installed in Easiflow GRP sterntubes; shaft seals with Thordon XL oil/grease-free guide bushes; shaft lines and propeller; couplings, mounts, thrust bearings and brakes.

The 62ft, 135-passengercarrying fast cat is also the first vessel delivered by the Wellington Electric Boat Building Company (WEBBCo), a joint venture between the ferry operator and established boatbuilder Fraser Foote.

WEBBCo managing director Fraser Foote says: “The ferry is very quiet at 19 knots and silent at 10 knots. It is faster and uses less energy than we anticipated.

“Ika Rere is a hugely successful project for us. We are the first in the southern hemisphere to have taken a vessel of this kind off the drawing board and onto the water.”