Fuel Quality, Alternative Fuels, and Decarbonization Challenges
On March 28, 2024, the seminar on “Fuel Quality, Alternative Fuels, and Decarbonization Challenges” was successfully held in Shanghai. Hosted by VPS and organized by Teamhead Marine Surveyors Co., Ltd., with the support of the China Shipowners’ Association, Shanghai MSA, and Shanghai Pudong Government. The event attracted over 100 participants from around the world.
Mr. Zhang Aiguo, the Secretary-General of CSA address and emphasized that green development is not only a shared aspiration but also a pivotal goal in the global economic landscape. He highlighted that the marine fuel industry is at a critical juncture in its journey towards ecological transformation.
Mr. Zhang Wei, the director of Shanghai MSA vessel energy and efficiency Center, provided an insightful overview of the establishment and mandate of Shanghai MSA. These include the collection of energy efficiency data and the formulation of strategic plans, aligning with the International Maritime Organization’s directives to offer prompt and efficient services to the Chinese maritime fleet. He pointed to significant advancements in the sector’s decarbonization efforts, underscored by the IMO tailored directives for flag states, which introduce both challenges and opportunities for the industry.
Capt. Rahul Choudhuri of VPS stressed the vital role of the VPS Digital Expansion Platform, which offers an extensive network of fuel oil data essential for informed decision-making in maritime decarbonization. He discussed a range of topics including the quality of marine fuels and its consequential impacts, maintenance challenges linked to biofuel production processes, the fundamental differences between biofuels and conventional fuels, and the critical relationship between ship energy efficiency and sustainable development.
Mr. Li Ling, the Maritime Technical Support Manager at DNV Greater China, commented on the ambitious decarbonization goals set at the recent MEPC 80 conference. He particularly noted the burgeoning interest in green methanol as a leading alternative fuel choice. Data from the DNV AFI Alternative Fuels Insights platform indicates a significant surge in the adoption of methanol-powered vessels, with orders in 2023 increasing to 138 out of 298 new builds utilizing alternative fuels, marking nearly a fourfold increase from the 35 orders recorded in 2022.
PANEL DISCUSSION WITH INDUSTRY EXPERTS
- CHIMBUSCO, Mr Tian Ming, General Manager, Enterprise Mgmt&Development Div
- DNV, Mr Li Ling, Head of Technical Support, DNV Maritime Greater China
- GARD,Mr. Yang Yang, Senior Lawyer, Defence/Charterers&Trader Claims Asia
- GREEN MARINE GRUOP, Mr Donnie Bagang, Managing Director
- THE METHANOL INSTITUTE , Mr Zhao kai, Chief Representative China
- SDARI, Mr Li Xin, Director, Innovation Center
- VPS, Capt. Rahul Choudhuri as Moderator
The morning session was presided over by Mr. Huang Bo, founder of Teamhead Marine Surveyors Co., Ltd. The afternoon featured a panel discussion moderated by Mr. James Huang, Senior Vice President of DNV. During the panel discussion, Mr. Tian Ming highlighted that China is currently home to a significant number of green methanol projects, characterized by large capacities and substantial investments. Mr. Zhao Kai provided insights based on the latest data from the Global Methanol Industry Association, projecting that by 2029, global production capacity for green methanol is expected to reach approximately 20 million tons. He predicted that by 2030, the demand from newly commissioned methanol dual-fuel vessels, along with about 100 retrofitted ships, will create a demand exceeding 10 million tons of green methanol.
In the concluding remarks, Mr. James Huang underscored the critical need for cross-industry collaboration. He noted that with the objectives set for 2030 and the end of the century, tackling climate change and advancing energy transition will necessitate a unified effort from various sectors including governments, classification societies, fuel suppliers, oil merchants, insurance firms, professional companies, traders, P&I Clubs, and specialized institutions, all working collectively to combat climate change.
The seminar on “Fuel Quality, Alternative Fuels, and Decarbonization Challenges” held in Shanghai on March 28, 2024, marked a significant milestone in addressing the pressing issues of sustainability in the maritime industry. With VPS as the host and Teamhead Marine Surveyors Co., Ltd. as the organizer, supported by esteemed entities like the China Shipowners’ Association, Shanghai MSA, and Shanghai Pudong Government, the event provided a platform for over 100 participants from across the globe to engage in fruitful discussions and knowledge exchange. As the industry continues to navigate towards greener practices and decarbonization, gatherings like these play a pivotal role in fostering collaboration and innovation, driving us closer to a more sustainable future for maritime transportation.
MORE ON-SITE UPDATES
- Ms. Li Ting, Decarbonization Advisor at VPS, delivered her keynote address on “Navigating Maritime Decarbonization: Insights and Strategies.
- In-depth Discussion with Industry Experts
