According to a company executive, the Italian bunker company Fratelli Cosulich is accelerating its growth in the market for alternative marine fuels as it plans to order methanol bunker barges in the Port of Singapore and provide biofuel bunkers in Genoa later in 2023, as reported by S&P Global.
Expanding fleet plus alternate fuel
According to Guido Cardullo, head of business development at the Genoa-based company, “We want to be a relevant player as energy transition gathers momentum, and the idea is not only to expand fleet but to also use it to cater to new alternative fuels,” in an interview with S&P Global Commodity Insights on April 17.
Fratelli Cosulich is planning to order methanol bunker barges by the end of this year to provide significant environmental benefits, despite challenges such as a lack of ample green methanol supply, its high price, and a lack of operational standards. However, with major shipping companies investing in methanol-powered ships, the prospects for methanol as a marine fuel are improving drastically, particularly in the container shipping segment. Singapore is leading various green shipping initiatives, and Fratelli Cosulich hopes to see well-defined standards for methanol bunkering in Singapore and significant volumes by 2025, although methanol bunkering still lags behind LNG bunkering, which is more developed currently.
LNG bunkering
Fratelli Cosulich has invested in LNG bunker barges and launched the first of two LNG small scale and bunker vessels in March. Its first bunker tanker, Alice Cosulich, with a 5,300-dwt capacity, can carry 8,200 cu m of LNG and 500 cu m of marine gasoil, and its delivery is scheduled for September. Fratelli Cosulich received funding from the European Union for the project under the Connecting Europe Facility program, as it contributes to the decarbonization of maritime transport through the implementation of LNG bunkering solutions in the Mediterranean Sea.
Fratelli Cosulich has completed a biofuel bunkering trial with a B10 solution and plans to market this blend in Genoa by the end of the year. The company has completed an ammonia bunkering feasibility study and is waiting for more clarity from engine manufacturers on ammonia propulsion before advancing plans for an ammonia-fueled bunker barge, with prototypes expected by 2024.
IMO needs to act
Fratelli Cosulich CEO, Paolo Cardullo, believes that the EU Emissions Trading Scheme and the EU Fit for 55 Package step in the right direction towards decarbonizing shipping. He hopes for global uniform incentives for maritime players to adopt cleaner fuels, which could be achieved through the International Maritime Organization. Fratelli Cosulich is hoping to expand its trading operations in South Korea and China in 2023. The company’s 2022 bunker sales were between 5.5 million-6 million mt, with Singapore being its biggest bunker market.
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Source: S&P Global
