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World Bank report discusses decarbonisation; names ‘most promising’ future bunker fuels

Research recommends countries to avoid new public policies supporting LNG as a bunker fuel and continue to regulate methane emissions, amongst others.
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The World Bank on Thursday (15 April) published new research on decarbonizing the maritime transport sector with findings that indicate significant business and development opportunities for countries, including for developing and emerging economies.

To lower and ultimately eliminate its climate impact, maritime transport needs to abandon the use of fossil-based bunker fuels and turn toward ‘zero-carbon bunker fuels’, namely shipping fuels which emit zero or at most very low greenhouse (GHG) emissions across their life cycles.

The first report being launched, The Potential of Zero-Carbon Bunker Fuels in Developing Countries, identifies two alternative fuels – ammonia and hydrogen – as the most promising zero-carbon bunker fuels for shipping at present, more scalable and cost-competitive than other biofuel or synthetic carbon-based options.

The second report, The Role of LNG in the Transition Toward Low- and Zero-Carbon Shipping, finds that liquefied natural gas (LNG) is likely to play a limited role in the decarbonization of the shipping sector, noting its specific niche applications on pre-existing routes or in specific vessel types.

The research further recommends countries should avoid new public policies supporting LNG as a bunker fuel, reconsider existing policy support, and continue to regulate methane emissions.

By transitioning toward zero-carbon shipping, many countries, especially those with large renewable energy resources, can break into a future zero-carbon fuel market, while modernizing their own domestic energy and industrial infrastructure.

The reports evaluate which developing and developed countries may be well positioned to take advantage of this emerging investment opportunity, and present initial case studies for Brazil, India, Mauritius and Malaysia.

“The maritime community, particularly in developing countries, has a unique opportunity in the context of these emerging zero-carbon bunker fuels.” said Bernice Van Bronkhorst, Global Director for Climate Change at the World Bank.

“Not only will they help decarbonize shipping, but they can also be used to boost domestic infrastructure needs and chart a course for low-carbon development more generally.”

The global maritime transport sector produces around three percent of global GHG emissions and an estimated 15% of the world’s air pollution annually.

The International Maritime Organization’s (IMO) Initial Strategy on the Reduction of GHG Emissions from Ships mandates that shipping’s GHG emissions be reduced by at least 50% below 2008 levels by 2050, and to be fully phased out as quickly as possible within this century.

“Zero-carbon fuels will need to represent at least five percent of the bunker fuel mix by 2030 to put shipping on a GHG trajectory consistent with the Initial IMO GHG Strategy, as well as the Paris Agreement’s temperature goals, ” added Binyam Reja, World Bank Acting Global Director for Transport.

“This means they need to be scaled up rapidly. These reports will be critical to help accelerate their targeted development and deployment.”

“It is vital that we address the impacts of maritime transport on ocean health, which is at the heart of the Bank’s transition to a Blue Economy. These reports offer policymakers useful tools to achieve a triple win – a healthier ocean, improved air quality and reduced GHG emissions,” said Karin Kemper, Global Director for Environment, Natural Resources and the Blue Economy.

The research makes the case that strategic policy interventions are needed to hasten the sector’s energy transition and seize opportunities for wider economic, energy, and industrial development in developing countries.

For instance, the introduction of a meaningful carbon price would create a level playing field for the development and utilization of zero-carbon bunker fuels. Revenue generated by such a market-based measure can help support developing countries in their energy transitions and accelerate crucial research, development, and deployment of these fuels.

The research also calls for businesses to focus on “no-regret” options, such as increased energy efficiency and maximum fuel flexibility.

Constructive collaboration between industry stakeholders and policymakers, both at the IMO and on a national/regional level, can also create greater certainty on the availability, pricing, and timing of zero-carbon bunker fuels which can further boost their rapid uptake from 2030.

Reports mentioned in the article are available for download in the links below:

Volume 1: Potential of Zero-Carbon Bunker Fuels in Developing Countries
Volume 2: Role of LNG in the Transition Toward Low-and Zero-Carbon Shipping
Summary for Policymakers and Industry

Photo credit: The World Bank
Published: 16 April, 2021

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Alternative Fuels

Wah Kwong subsidiary appoints Nordic Green Biotrading as European distributor

Nordic Green will have the exclusive right to market, promote, and distribute Venture Energy’s supply of RED Advanced bio-methanol and RFNBO-methanol across the EEA, UK, and Switzerland.
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June 17, 2026

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Wah Kwong subsidiary appoints Nordic Green Biotrading as European distributor

Venture Energy, a sustainable fuels supplier headquartered in Hong Kong, recently announced the signing of a Distribution Agreement with Nordic Green Biotrading ApS (Nordic Green), appointing the Danish company as its exclusive distributor of renewable methanol across the EEA, the United Kingdom, and Switzerland.

The move marked a key step in expanding Venture Energy’s next-generation marine fuels platform into the European market.

Venture Energy is a subsidiary of Hong Kong shipowner Wah Kwong Maritime Transport, focusing on the procurement and trading of clean fuels.

Under the agreement, Nordic Green will have the exclusive right to market, promote, and distribute Venture Energy’s supply of RED Advanced bio-methanol (bio-methanol) and RFNBO-methanol (e-methanol) throughout the Territory.

“We are delighted to formalise our longstanding collaboration with Nordic Green as our strategic distribution partner in Europe, extending the breadth and quality of our downstream coverage for our supplier network and developing the profile of high-quality renewable methanol producers in the European market.” said Gregor McMillan, Executive Director of Venture Energy.

Deepak Devendrappa, General Manager of Venture Energy, said: “Nordic Green’s track record in local distribution, deep market knowledge, and strong customer relationships across the region’s core bio-blending and chemical sectors make them the ideal partner to bring our ISCC-certified renewable methanol to our customers in the territory. 

“This agreement is another step in the road for Venture Energy as we act on Wah Kwong’s commitment to supporting the energy transition with reliable, sustainable fuel solutions.”

The distribution agreement covers sales within the dutiable area of the EEA, the United Kingdom, and Switzerland. Venture Energy will continue to market directly into the marine bunkering segment.

Bo Gleerup, representing Nordic Green, added: “This exclusive partnership represents a significant milestone for Nordic Green. Being able to sell Venture Energy’s high-quality, certified, renewable methanol volumes from a range of bio-methanol and e-methanol producers, complement our existing supply network for European road-fuel and chemical producers. This fresh focus allows us to offer some of the most competitive products coming into the market today. We look forward to working closely

with our colleagues at Venture Energy to develop this collaboration and deliver value to our shared customers across the territory.”

Related: Wah Kwong launches clean fuels procurement and trading subsidiary Venture Energy
Related: Wah Kwong clean fuels trading subsidiary and Shenji Energy ink green methanol supply deal

 

Photo credit: Venture Energy
Published: 17 June, 2026

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Hydrogen

LH2 Shipping wins Enova funding for two more liquid hydrogen-powered bulk carriers

Company secured USD 36 million for the development and construction of two additional liquid hydrogen-powered bulk carriers.

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June 17, 2026

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LH2 Shipping wins Enova funding for two more liquid hydrogen-powered bulk carriers

Norway’s LH2 Shipping on Tuesday (16 June) said it has been awarded Enova support of NOK 344.3 million (USD 36 million) for the development and construction of two additional liquid hydrogen-powered bulk carriers.

With the latest award, LH2 Shipping is now involved in the development of six hydrogen-powered bulk carrier projects. The announcement builds on previous Enova-supported vessel initiatives and reflects growing momentum for liquid hydrogen as a viable fuel alternative for short-sea shipping to meet decarbonising policy goals.

The new projects represent a continuation of LH2 Shipping’s long-term strategy to establish commercially viable hydrogen-powered vessels while contributing to the development of the supporting fuel and bunkering infrastructure required for large-scale adoption.

“This award is an important strategic milestone for LH2 Shipping,” stated Ivan Østvik, CEO of LH2 Shipping. 

“It strengthens our position as a developer of liquid hydrogen-based zero-emission vessel solutions and brings us yet another step closer to our ambition of enabling a substantial fleet of hydrogen-powered vessels that can help establish a complete maritime liquid hydrogen value chain.”

Since introducing the world’s first hydrogen-powered bulk carrier projects, LH2 Shipping has focused on moving beyond demonstration concepts toward commercially deployable vessels. The addition of vessels five and six further expands the project portfolio and supports continued industrial learning across ship design, fuel systems, operations, and infrastructure.

The Enova support will indirectly enable LH2 Shipping to continue their work developing additional zero-emission solutions for passenger transport and offshore operations, supporting Norway’s broader transition toward a low-emission maritime sector.

“If we are to succeed in the transition to low and zero emission solutions in the maritime sector, we depend on players who dare to go first. LH2 Shipping shows how shipping companies can take the lead and adopt new technology. This is crucial to accelerating development and reducing emissions from shipping,” said Head of Hydrogen and Ammonia Initiatives, Elin Ulstad Stokland at Enova.

This latest Enova award brings total support for the six vessels to more than NOK 800 million and reinforces the momentum behind hydrogen-powered shipping in Norway. Through these projects, LH2 Shipping is offering ship operators to decarbonise bulk transport at scale while contributing to the development of the infrastructure and experience needed for wider industry adoption.

 

Photo credit: LH2 Shipping
Published: 17 June, 2026

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Methanol

China: Chimbusco takes delivery of new methanol bunkering vessel in Zhoushan

Company says commissioning of “Zhong Ran LV Neng 85” will further enhance its service capabilities in green methanol bunkering in major domestic ports.
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June 16, 2026

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Chimbusco takes delivery of new methanol bunkering vessel in Zhoushan

China Marine Bunker (PetroChina) (Chimbusco) recently took delivery of its first bunkering vessel in China to deliver methanol to dual-fuel ships.

The 8,500-dwt duplex stainless steel chemical tanker Zhong Ran LV Neng 85 was successfully delivered in Zhoushan.

The company said the commissioning of this new ship will further enhance Chimbusco’s service capabilities in green methanol bunkering in major domestic ports and expand its national marine new energy service and support network

During the delivery period, Chimbusco said it focused on safe operations and conducted special training for all crew members of the vessel.

The training covered methanol bunkering operation specifications, prevention of collisions between commercial and fishing vessels, daily vessel reporting, and voyage report filling standards.

Manifold Times previously reported the launching of the bunkering vessel at Taizhou Fangzhen Shipbuilding Wharf in Zhejiang.

The floating out of the ship comes after Chimbusco has obtained methanol bunkering licences for Shanghai Port and Ningbo Port.

Related: Chimbusco launches new methanol bunkering vessel in Zhejiang

 

Photo credit: China Marine Bunker (PetroChina) (Chimbusco)
Published: 16 June, 2026

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