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Argus Media: IMO to consider fuel levy to develop zero-carbon fuels

The International Chamber of Shipping proposed a $2/t levy on marine fuel purchases last year to create a fund for development of zero-carbon marine fuels, it said.

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George Collard of global energy and commodity price reporting agency Argus Media on Monday (23 November) published an article on the considerations behind International Maritime Organisation’s decision to back a levy proposal to establish a fund for decarbonisation: 

The International Maritime Organisation (IMO) has agreed to give further consideration to the creation of a $5bn fund to develop zero-carbon marine fuels, which would be backed by a fuel levy.

The International Chamber of Shipping (ICS) proposed a $2/t levy on marine fuel purchases last year to create a fund for the research and development of zero-carbon marine fuels. The fund would be supervised by the IMO and managed by a new International Maritime Research and Development Board (IMRB). 

The organisation’s marine environmental protection committee (MEPC) — which oversees the IMO’s environmental regulations — met last week.

“Following discussion, the committee acknowledged the proposal and noted diverging views and concerns on the proposed mechanism, with regards to various administrative, legal and governance aspects,” the IMO said.

“The committee noted that the proposal would require more detailed consideration, including of the potential impacts on states, before taking any decision,” it said.

“We recognise the unprecedented nature of our proposal, but unless the IMO is willing to take forward the industry’s offer of $5bn to accelerate research and development (R&D) within the IMO regulatory framework, it is really difficult to see how the industry can make the IMO’s 2050 target,” ICS deputy secretary general Simon Bennett said. 

Other supporters of the levy include shipping association Bimco, the Cruise Lines International Association, the World Shipping Council, and international associations representing the tanker, cargo, and ferry industries.

The IMO hopes to draft firm emission reduction plans in 2023, but currently targets reducing CO2 emissions from shipping by as much as 70pc by 2050 compared with 2008 levels. The MEPC passed short-term plans to cut carbon intensity by 2030. 

The IMO’s MEPC also passed a ban on the carriage and use of Heavy Fuel Oil (HFO) in the Arctic after draft plans were drawn up in February. The use, and carriage for use as fuel, of fuel oil having a density higher than 900 kg/m³ at 15°C, or a kinematic viscosity higher than 180 mm²/s at 50°C will be prohibited in the Arctic under the new IMO regulation.

But the Clean Arctic Alliance (CAA) slammed the ban, which it says is “ridden with loopholes”. The IMO’s Arctic plans have previously been criticised by the International Council of Clean Transportation (ICCT).

Vessels flagged to Arctic nations or those with double hulls or protected fuel tanks will be exempt from the HFO ban until 2029.


Photo credit and source:
Argus Media
Published: 24 November, 2020

 

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Alternative Fuels

South Korea’s Polaris Shipping orders tri-fuel bulk carriers for Vale charter deal

Bulk carriers, which will be delivered sequentially from 2031, will be equipped with WinGD-developed engines capable of using methanol, ethanol and heavy fuel oil as marine fuels.

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South Korea’s Polaris Shipping orders tri-fuel bulk carriers for Vale charter deal

South Korean shipowner Polaris Shipping recently said it has signed a newbuilding contract for four tri-fuel vessels with Chinese shipbuilder Qingdao Beihai Shipbuilding Heavy Industry on 4 August.

The 210,000-dwt Newcastlemax bulk carriers, which will be delivered sequentially from 2031, will be equipped with WinGD-developed engines capable of using methanol, ethanol and heavy fuel oil as marine fuels.

The vessels are also designed as LNG- and ammonia-ready ships, allowing them to be converted to LNG or ammonia propulsion in the future.

Polaris Shipping also plans to significantly improve energy efficiency and reduce greenhouse gas emissions by applying various energy-saving technologies, including wind-assist propulsion systems, rotor sails, departure optimisation and land-based systems, to the vessels.

Polaris Shipping has completed a 25-year long-term charter contract for the bulk carriers with Brazilian iron ore producer Vale.

Polaris Shipping plans to sign construction contracts for up to four additional 210,000-dwt eco-friendly Newcastlemax bulk carriers with Chinese shipbuilder Hengli Heavy Industries in the near future. The Newcastlemax bulk carriers ordered from Hengli will be built as high-efficiency, environmentally friendly vessels to replace the company’s existing older bulk carriers.

 

Photo credit: Polaris Shipping
Published: 13 August, 2026

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Biofuel

MESD study finds existing Singapore harbour craft ready for B100 bio bunker fuel adoption

Results demonstrate the qualified readiness of existing large harbour craft in Singapore for B100 adoption, provided that appropriate fuel-handling, storage and additive practices are implemented.

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MESD study finds existing Singapore harbour craft ready for B100 bio bunker fuel adoption

Singapore’s Maritime Energy & Sustainable Development Centre of Excellence (MESD) on Wednesday (5 August) said the findings of its latest study indicate that existing large harbour craft in Singapore are ready for the adoption of B100 biodiesel, provided appropriate fuel handling, storage and additive practices are in place.

The findings were published in MESD’s public report, Study on the Readiness of Existing Large Harbour Craft for B100 Biodiesel in Singapore.

“Overall, the results demonstrate the qualified readiness of existing large harbour craft in Singapore for B100 adoption, provided that appropriate fuel-handling, storage and additive practices are implemented,” MESD said in a social media post. 

“This represents an important step towards supporting the wider adoption of sustainable marine fuels and advancing Singapore’s maritime decarbonisation journey.”

The study evaluated fuel storage stability, engine performance, emissions and operational readiness through controlled laboratory testing and sea trials involving a tugboat and a bunker tanker.

MESD said the findings are highly encouraging, which include:

  • Stable engine performance was maintained throughout the 200-hour sea trials, with no significant power loss, abnormal fuel-consumption trends or critical operational disruptions.
  • Antioxidant additives improved oxidation stability and helped reduce the risk of fuel degradation during storage.
  • B100 achieved brake thermal efficiency comparable to diesel, while producing lower carbon monoxide and particulate matter emissions, with a modest increase in nitrogen oxide emissions.

Led by the MESD, the study was conducted in collaboration with KST Maritime Pte Ltd, V-Bunkers Tankers, Alpha biofuels, Aderco, Maritec Naias and IHI Power Systems Co Ltd.

The Maritime and Port Authority of Singapore (MPA)​ and the ​Singapore Maritime Institute (SMI)​ also contributed to the study. 

MESD added that further research on long-term engine endurance, fuel stability and material compatibility is ongoing under its FAME 1000 project, with a related public report expected to be released later this year.

Note: The report can be accessed here.

 

Photo credit: Maritime Energy & Sustainable Development Centre of Excellence
Published: 7 August, 2026

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Biofuel

SDHI wins order from Svitzer to build four biofuel-ready tugs

Indian shipbuilder says it has secured a contract from Svitzer to construct four advanced TRAnsverse 3200 tugs, which are up to 15% more fuel efficient than conventional tug designs.

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SDHI wins order from Svitzer to build four biofuel-ready tugs

Indian shipbuilder Swan Defence and Heavy Industries (SDHI) on Thursday (6 August) said it has secured a contract from Denmark-based towage operator Svitzer to construct four advanced TRAnsverse 3200 tugs. 

The Transverse 3200 tugs will be biofuel, IMO Tier III emissions standards, and FiFi1 firefighting class ready, reflecting the vessels’ capability for reduced environmental impact and enhanced fire-response readiness in port and terminal operations.

The vessels will be built at SDHI’s yard in Pipavav, Gujarat, adjacent to the port where Svitzer also has a harbour towage operation. Deliveries for the order are scheduled to commence in early 2028.

The contract follows an extensive competitive evaluation of leading global shipyards. The high specification vessels will be constructed to the Bureau Veritas class.

Co-developed by naval architects Robert Allan Ltd. and Svitzer, the patented TRAnsverse 3200 design is engineered for complex harbour towage and escort operations. 

Featuring a unique hydrodynamic hull design and omni-directional propulsion, the vessels are capable of safely guiding large ships through severe weather and restricted port channels. Delivering an 80-tonne bollard pull, the TRAnsverse design is up to 15% more fuel efficient than conventional tug designs, directly supporting global maritime decarbonization goals.

Rear Admiral Vipin Kumar Saxena IN (retd.), CEO, Swan Defence and Heavy Industries Limited (SDHI), said: “It is indeed a notable achievement for SDHI to construct one of the world’s most sophisticated towage vessels. Svitzer’s rigorous evaluation process reaffirms the strength of our engineering capabilities in the niche, high-specification vessel segment.”

Mr. Kasper Friis Nilaus, CEO, Svitzer, said: “Svitzer’s TRAnsverse tug design offers significant benefits to customers in terms of releasing operational constraints and improving port productivity, sustainability and safety margins. We are pleased to partner with SDHI to deliver four of these next-generation vessels to the benefit of our customers and maritime supply chains globally.”

 

Photo credit: Swan Defence and Heavy Industries
Published: 7 August, 2026

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