Refueling operations with alternative fuels, particularly ammonia and methanol, have increased in several locations around the world over the past week. Two ships capable of using ammonia in South Korea and Australia have been equipped with green ammonia. The Terra Clove vessel, owned by Eastern Pacific Shipping, was equipped with green ammonia fuel at Ousan port in South Korea, which is supplied from the Envision Energy production plant in Inner Mongolia and delivered by the South Korean supplier Lotte Fine Chemical.
Refueling Operations in Australia
The Mineral Europa vessel from CMB.TECH was also equipped with an unspecified amount of green ammonia during a ship-to-ship refueling operation at Port Hedland in Australia. This fuel was provided by the ammonia bunkering vessel Shenghang Yongle, and this operation is a continuation of the ammonia ship-to-ship transfer tests scheduled for 2024.
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Expansion of Methanol Fuel in China
In China, the container ship OOCL Grace owned by OOCL received 983 tons of bio-methanol at Yantian port. This operation demonstrates the capability of alternative fuels to navigate diverse supply chains and enter the fuel tanks of ships.
While these operations indicate progress in alternative fuels, establishing a routine for such deliveries requires adequate infrastructure and storage capacity. Some ports are exploring ways to create sustainable and regular demand instead of relying on one-off deliveries. For example, the ports of Singapore and Qingdao have established the necessary infrastructure to increase methanol bunkering in their shared maritime corridor.
These two ports are also looking for ways to aggregate methanol fuel demand between themselves. Demand aggregation can help suppliers justify regular deliveries and investments in fuel and storage infrastructure; however, no timeline has yet been announced for the proposed trials.
Future Demand Forecast
A feasibility study from the ports of Los Angeles and Long Beach suggests that methanol fuel demand at these two ports could reach between 64,000 and 250,000 tons per year by 2030. Additionally, LNG demand at these ports could reach between 65,000 and 115,000 tons per year. These figures provide a glimpse into the future market for fuel suppliers.
Currently, only 29 ports worldwide offered some form of methanol bunkering last April. In comparison, DNV has noted 171 vessels capable of using methanol and ethanol that are currently in operation, with another 292 vessels under construction for delivery by 2031. Additionally, 8 vessels capable of using ammonia are currently operational, and 42 more are under construction for delivery by 2030.
More ports around the world are gaining practical experience with refueling using alternative fuels, but transforming these individual operations into regular commercial deliveries and increasing fuel acceptance requires adequate access to fuel, storage capacity, and supporting infrastructure.
In other news related to alternative fuels, DNV registered 53 orders for vessels with alternative fuels in October, 30 of which are capable of using LNG. Additionally, four vessels capable of using ammonia have also been ordered, marking the end of a two-month period without new orders for this fuel. The Japanese marine engine manufacturer Japan Engine Corporation has also received an order for four main engines capable of using ammonia. These engines are intended for each of the car carrier vessels in a project announced by seven Japanese companies on October 27, which are expected to be operational by 2030 and are anticipated to be supplied by an ammonia bunkering vessel.
The Danish company European Energy has also partnered with Canadian ethanol producer Greenfield Global to establish a plant in Quebec that can produce up to 48,000 tons of e-methanol per year. These companies have targeted ships as one of the potential users of this fuel.
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