Shipping companies must now adopt a longer-term perspective when acquiring alternative fuels, departing from the short-sighted approach prevalent during the era of burning conventional fuel oil.
Shift In Marine Fuel Strategy
Ocean Network Express (ONE) deputy general manager of fuel Richard Ho (above) disclosed at the Marine Fuels 360 conference in Singapore this week that the uncertainties surrounding the availability of various alternative fuels meant that ship operators had to think longer-term as the world moves towards decarbonization by 2050.
Mr Ho said: “We used to be looking at marine fuel-buying for the near term, three to six months, and adopted and adapted accordingly. The moment we go into a new marine fuel, we’re no longer looking at months, six months, or even a one-year horizon. We’re looking at a multi-year horizon, to make sure we can procure a certain level of alternative fuels, whether it’s ammonia or methanol.”
Decarbonization Endeavors
ONE has 48 neo-Panamax new buildings on order from Nihon Shipyard, Imabari Shipbuilding, Hyundai Heavy Industries, and Yangzijiang Shipbuilding, mostly ammonia- or methanol-ready. The sixth largest liner operator is also trialing biofuels on existing vessels.
Mr Ho explained: “Each shipping company is in a different stage of development. They also have different stages of decarbonization, in various ways.
Diverse Decarbonization Paths
“There’s going to be an increase for different fuels with the growth of the global economy, but concerning every shipping line, the demand within each organization may differ, depending on its decarbonization effort.”
Representatives of shipping lines attending the event were, largely, unable to quantify the decarbonization stage they had reached, but each has different strategies to achieve net zero. For example, PIL is trialing biofuels on its current fleet and opting for LNG dual-fuel for its new buildings.
Fuel Strategy Flexibility
It was also noted that while CMA CGM had initially requested methanol dual-fuel for its latest 9,200 teu new buildings at Shanghai Waigaoqiao Shipbuilding, the French carrier has reportedly requested a switch to LNG, due to concerns over insufficient methanol supply in the market.
Mr Ho stressed that to be net-zero was not just about burning alternatives to fossil fuels, but also about reducing carbon footprint in companies’ overall operations.
He said: “Using e-BDNs (bunker delivery notes) is also a decarbonization effort because it reduces the manpower and it reduces people movement. And we’re looking at other areas, technology-wise – whether it’s wind power, biofuels… In that aspect, we’re not just looking at shipping alone. We’re looking at the whole supply chain.”
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Source: The Loadstar
