ARE BUNKERING TERMINALS KEEPING PACE WITH THE LOW-CARBON TRANSITION?

Ship owners know they need to shift to low-carbon fuel to decarbonize their operations, and their newbuild orders reflect that. According to Clarksons Research, 539 newbuild orders were placed in 2023 for alternative fuel capable vessels – 45% of all orders by tonnage. 

But it’s not just up to ship owners and yards to work toward decarbonized shipping. Ports and their partners must ensure sufficient supply infrastructure in in place when these vessels come in for service. 

Ship owners need to know that alternative fuel supply at ports can meet rising demands to a sufficient level, and at a reasonable cost. And, even if their preferred fuel is available on their habitual routes, they want assurance that other ports can offer bunkering in case of a delay or diversion.

LNG, methanol, LPG and ammonia: where we are today

Currently, in both ship readiness and bunkering availability, two fuels stand ahead of the pack: LNG and methanol. Others, like LPG and ammonia have potential for development.

For LNG, ports from Rotterdam to Singapore have made significant investments to develop as bunkering hubs. The Port of Rotterdam, Europe’s largest LNG bunkering hub, reported record volumes in 2023, demonstrating a full recovery from 2022’s slump. Elsewhere, across Europe, North and South America, Asia Pacific and Australia, ship-to-ship bunkering operations are on the rise to offer vessels flexible refueling options.

Methanol bunkering remains comparatively limited for the moment, but 2023 was something of a breakthrough year. 200 newbuilds for dual-fuel methanol ships were ordered, and an increasing number of bunkering sites are in development. The Maritime and Port Authority of Singapore (MPA) is eager to develop as a methanol bunkering hub, recently issuing an expression of interest (EOI) to potential suppliers.

LPG is largely used as fuel for LPG carriers, which conduct bunkering at LPG terminals. There are currently more than 1,000 such terminals operating worldwide, which could facilitate distribution for bunkering activities. The first ship-to-ship LPG bunkering occurred in 2021, and today around 900 LPG carriers could conduct these operations if suitably equipped for LPG transfer.

Having been successfully transported on LPG carriers, ammonia bunkering is being increasingly eyed for development. Technology developers will need to be mindful of the specific challenges of ammonia, from its high toxicity to its low energy density which requires additional fuel volumes. As biofuels develop as drop-in fuels for oil and LNG-fueled ships, these will also require dedicated distribution infrastructure, possibly taking advantage of existing LNG, oil and methanol terminals. 

Supporting the transition to low-carbon bunker fuels

Bureau Veritas is supporting the scaling-up of fuel supply in ports around the world, helping ports and owners ensure safety at every step.

We recently updated our NR 620 Rules for bunkering ships, and have developed Rules for methanol-, ammonia-, hydrogen- and gas fuel ships. As of today, the BV-classed fleet counts around 35% of the global LNG bunker vessel fleet as well as some of the in-service methanol bunkering ships.

We also contribute to the work of organizations such as the Society for Gas as Marine Fuel (SGMF) to develop a holistic approach to bunkering safety during in fuel transfer and Sim-Ops. 

Preparing for the challenges ahead

Looking ahead, as shipping moves to potentially zero-carbon fuels like hydrogen and ammonia, a global network of new terminals will be needed. Several countries aim to develop this infrastructure for deployment in the 2030s. And these facilities will need to be able to answer to the specific storage, transfer and safety challenges of these fuels. 

As a trusted partner of port authorities and ship owners alike, Bureau Veritas is ready to support them as they answer immediate bunkering needs and make preparations for a zero-carbon future.