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Alternative Fuels

Argus Media: Biomethanol price not conducive to bunkering

Shipowners switching to biomethanol as a marine fuel to curb CO2 emissions would face higher bunker bills at today’s prices.
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Stefka Wechsler of global energy and commodity price reporting agency Argus Media on Friday (12 November) published a report on the fuel cost for shipowners shifting to biomethanol as an alternative marine fuel.

Shipowners switching to biomethanol as a marine fuel to curb CO2 emissions would face higher bunker bills at today’s prices, even after accounting for the added cost of CO2 life cycle emissions from very low-sulphur fuel oil (VLSFO).

Marine fuels sale and consumption are not subject to greenhouse gas restrictions or fees, but the EU has two proposals in the works that would change that. 

One plan is to add maritime emissions to the EU emissions trading scheme (ETS), starting in 2023 with auctions for 20pc of CO2 emissions and gradually increasing to 100pc of CO2 emissions in 2026. 

This proposal applies to emissions generated during fuel combustion. The second proposal is for vessels to reduce their GHG intensities, starting in 2025 with a 2pc reduction and gradually increasing to a 75pc reduction by 2050, from a 2020 baseline. 

The proposal would apply to emissions generated during a fuel’s life cycle.

During its life cycle, one metric tonne (t) of VLSFO emits about 3.734t of CO2, according to a study by the nonprofit International Council on Clean Transportation. CO2 traded through the EU’s ETS averaged $70/t and Amsterdam-Rotterdam-Antwerp (ARA) VLSFO averaged at $573/t from 1-12 November, according to Argus data. 

Adding life cycle CO2 emissions cost to VLSFO would have increased its price to $833/t. By comparison, biomethanol, excluding CO2 life cycle emission cost, was pegged at $3,336/t in ARA average for the week ending 5 November, Argus data showed, four times higher than VLSFO with the added CO2 cost.

Biomethanol is produced from biomass and so creates fewer CO2 emissions than traditional methanol, which is produced from natural gas or coal.

Danish shipping company Maersk earlier this year said it is considering biomethanol as a way to reduce its CO2 emissions, in addition to considering lignin fuels, e-methanol, biodiesel and green ammonia. Fossil fuel-generated methanol in Rotterdam was assessed at $958/t average for the week ending on 5 November, Argus data showed, less than one-third of the price of biomethanol.

Unless biomethanol prices drop sharply in the 13-plus months until January 2023 when the ETS scheme could be implemented, it is unlikely that most ship owners will embrace burning biomethanol. Paying for CO2 emissions through EU’s ETS would be more cost effective than switching to biomethanol or fossil fuel-generated methanol at today’s prices.

 

Photo credit and source: Argus Media
Published: 15 November, 2021

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LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

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PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions. 

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post. 

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024. 

 

Photo credit: Pacific International Lines
Published: 21 July, 2026

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LNG Bunkering

CIMC SOE secures order for 12,000-cbm LNG bunkering vessel from Sinopec Clean Energy

Once operational, the vessel is expected to strengthen Sinopec’s domestic coastal LNG bunkering network and help address gaps in China’s alternative fuel bunkering infrastructure.
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July 21, 2026

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CIMC SOE secures order for 12,000-cbm LNG bunkering vessel from Sinopec Clean Energy

China’s Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd. (CIMC SOE) recently signed a contract with Sinopec (Beijing) Clean Energy Co., Ltd. to build a 12,000-cubic metre (m3) LNG bunkering vessel, according to Chinese maritime media.

The vessel is scheduled for delivery in 2028 and will support Sinopec’s efforts to expand its presence in the marine clean energy sector.

Once operational, the vessel is expected to strengthen Sinopec’s domestic coastal LNG bunkering network and help address gaps in China’s LNG bunkering infrastructure.

With this signing , CIMC Pacific Offshore Engineering’s LNG bunkering vessel orderbook is further strengthened, maintaining its leading position in the global market for small and medium-sized LNG bunkering vessels.

The contract also marked another milestone for CIMC SOE, which has seen a sharp increase in orders and business performance this year amid a surge in domestic LNG vessel demand.

 

Photo credit: Nantong CIMC Sinopacific Offshore & Engineering
Published: 21 July, 2026

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Nuclear

ABS awards AiP to Korean institute for SMR-powered container ship concept design

KRISO says AiP recognises the technical feasibility and safety of its concept design, marking an important milestone toward the development of next-generation nuclear-powered commercial ships.
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July 21, 2026

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ABS awards AiP to Korean institute for SMR-powered container ship concept design

Korea Research Institute of Ships & Ocean Engineering (KRISO) on Thursday (16 July) received Approval in Principle (AiP) from the American Bureau of Shipping (ABS) for its concept design of a 15,000 TEU Small Modular Reactor (SMR)-powered container ship utilising Molten Salt Reactor (MSR) technology.

KRISO said the AiP recognises the technical feasibility and safety of its concept design, marking an important milestone toward the development of next-generation nuclear-powered commercial ships.

“This achievement demonstrates international recognition of KRISO’s technological capabilities in the rapidly evolving field of nuclear-powered shipping, supporting the transition toward low-carbon maritime transport,” it said. 

Building on this milestone, KRISO will continue advancing basic and detailed ship design, paving the way for future demonstration and commercialisation of SMR-powered vessels. 

Through continued R&D and international collaboration, KRISO remains committed to strengthening next-generation maritime technologies and contributing to the safe deployment of nuclear propulsion in the maritime industry.

 

Photo credit: Korea Research Institute of Ships & Ocean Engineering
Published: 21 July, 2026

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