Maersk Oil Trading, Mitsui plan methanol bunkering project in S'pore
Green methanol expected to be an alternative marine fuel to make significant contributions to reduce GHG emissions.
Mitsui & Co, Mitsui & Co. Energy Trading Singapore (METS), Maersk Oil Trading, a part of A.P Moller-Maersk (MOT) and American Bureau of Shipping (ABS) have agreed to jointly conduct a detailed feasibility study of methanol bunkering logistics in Singapore.
"This joint project is in line with the International Maritime Organization's (IMO) initial strategy to halve greenhouse gas (GHG) emissions within the shipping industry by 2050 compared to 2008 levels, which is also aligned with the direction of the Maritime and Port Authority of Singapore ("MPA") to achieve decarbonisation of the maritime industry in Singapore," says a release from Mitsui.
"Green methanol is expected to be one of the promising alternative marine fuels that has the potential to make significant contributions to reducing GHG emissions in the shipping industry and project participants strongly believe that the establishment of a safe and reliable operational platform is valuable to Singapore as a leading bunkering location globally."
The project participants intend to investigate the design of the bunkering vessel, safe operating procedures, fuel storage and regulatory considerations by utilising both MOT and Mitsui group's presence in the Singapore marine fuel market, the release added. "ABS will support the study by providing an operational risk assessment. The project is targeting to conduct an actual ship-to-ship bunkering operation to a vessel in the first half of 2023."
Mikkel Kannegard, Head, Maersk Oil Trading says: "At A.P. Moller - Maersk, we have made great progress in identifying sources of green methanol and now developing and proving we can safely deliver it to our vessels is a key priority for us. It will contribute strongly to our target of achieving net zero greenhouse gas emissions by 2040."
Yoshio Kometani, Representative Director, Executive Vice President, Mitsui adds: "We are pleased to have an opportunity to participate in this joint project in Singapore with reliable and like-minded partners. The project aims to establish a platform for the bunkering of alternative fuel for vessels and will lead to maritime decarbonization. Through this project and other GHG reduction initiatives, Mitsui will continue contributing to the realisation of a carbon neutral society."
Methanol presents an immediate and promising solution with practical advantages in storage, handling and carbon intensity reduction potential which is gaining traction in the market, says Panos Koutsourakis, Director, Sustainability Strategy, ABS.
The further development of green methanol (e.g. electrolysis and biogenic carbon) provides a viable option for carbon neutral operations, and ABS is proud to be able to use its experience with methanol vessels to support the project, Koutsourakis added.