• 2016 June 8 18:16

    Posidonia 2016: Maritime energy is diversifying in response to future trends

    The volatility of oil prices, the ever changing regulatory framework and the projected exponential growth of global deep sea shipping tonnage are the factors likely to define the future energy requirements for the sea transportation industry according to propulsion system makers and classification societies who are among the 1.850 exhibitors gathered in Athens this week for Posidonia 2016, the world’s most prestigious maritime event.

    “Regardless of any geopolitical scenario, global tonnage is predicted to double by 2030 due to growing middle class populations in India and China,” said Nick Brown, Marine Director, Lloyd’s Register Marine, one of the world’s leading classification societies present in this year’s Posidonia.

    “Our studies suggest that while heavy fuel oil will continue to be the most popular in terms of usage by the shipping industry there will be an increase in the diversity of the fuel mix with LNG predicted to account for up to 11 percent of deep sea shipping fuel. Two more drivers leading to the advent of alternative fuels can be classified in two broad categories: Regulatory requirements and environmental concerns, and availability of fossil fuels, cost and energy security,” he added.

    “We are working with designers, owners and equipment manufacturers to ensure their specific projects are considering all different alternatives including LNG as a viable alternative for localized trading in regional seas such as the Baltic Sea or the Mediterranean,” he concluded.  

    Indeed, engine manufacturers participating at this year’s Posidonia Exhibition seem to be in agreement that demand for alternative fuel propelled engines is on the rise. Michael Jeppesen, Mechanical Engineer at MAN Diesel & Turbo, a leading manufacturer of maritime propulsion systems, said that gas fuels are emerging slowly but surely.

    “The infrastructure has significantly improved, the network of bunkering stations worldwide is fast increasing and oil companies are finally seeing the viability of the alternative fuels market for the shipping industry,” said Jeppesen.

    “These positive developments have led to an increased interest from shipowners who are becoming more receptive to the idea of alternative fuel as the main energy source for their fleets.  We currently have 150 alternative fuel engine orders in our portfolio for two stroke engines and this is mainly from Greek shipowners for deep sea LNG carriers. While two thirds of these orders are for LNG carriers the rest account for container vessels.

    “We have also developed the design concept for other fuel types such as methanol, LPG and ethane and we are already working to deliver nine methanol engines and five more for ethane. Ten per cent of our total order portfolio comprises non conventional fuel orders,” he added.

    There are currently about 500 LNG-fuelled ships using their own cargo to meet their energy needs and a few tens of others specially converted to use this type of fuel for propulsion purposes. But if infrastructure development continues unabated, in the next ten years it is estimated that we will have a 50-50 split between conventional and new fuels, mainly LNG and LPG, according to Jeppesen.
    Another leading propulsion systems manufacturer present at Posidonia this week is Wartsila and its spokesperson Dyonisios Antonopoulos, General Manager, Marine Solutions, agrees that LNG is the future.

    “LNG is a more environmentally friendly fuel and with the revolution of shale gas it appears that it will also be a cost efficient alternative versus the conventional heavy oil fuels. Wartsila was involved in the development of dual fuel engines early on and we believe that the additional capex required for LNG tanks will be easily offset by the attractive LNG prices. We have 1.500 dual fuel engines with more than 16m accumulated running hours across all segments including LNG carriers, merchant and offshore and this is likely to grow. We are particularly optimistic about the LNG use in the cruise industry which has significantly upped its investment in this segment of newbuildings.

    Theodosis Stamatelos, from Lloyd’s Register tends to agree that cost is key: “The two key drivers that will convince owners to convert to alternative fuels or order ready newbuildings is regulation and the commercial fuel split with the latter being on everybody’s lips in terms of what will be the difference in price between low sulphur heavy oil versus LNG. With the shale oil phenomenon we are seeing an increasing decoupling between the price of oil and the price of gas. Once the differential becomes clearer then we will see more projects start.”

    The industry seems to be in a consensus that LNG as a fuel for shipping is here. The infrastructure required for it is happening, it is no longer on paper, the design is ready, the ships are being delivered, the technical challenges have been resolved. This is now purely a commercial decision.  

    Greek shipowners are leading the pack with a growing percentage of them asking for LNG ready notations effectively expressing their commitment to be ready to go LNG as soon as the regulation demands it for both existing vessels and newbuildings.

    Posidonia 2016 is being held from June 6 – 10 at the Athens Metropolitan Expo. The event is organised under the auspices of the Greek shipping community and the five major associations representing Greek shipping interests: Ministry of Maritime Affairs & Insular Policy, Municipality of Piraeus, Hellenic Chamber of Shipping, Union of Greek Shipowners, Greek Shipping Cooperation Committee, Hellenic Shortsea Shipowners Association and Association of Passenger Shipping Companies.

2020 February 22

17:14 First Subsea provide Cable Protection Systems for NnG
14:48 Med Marine: Turkish-built tug equipped with SCHOTTEL bestseller
13:41 CSBA study finds U.S. dredging industry a critical component of national security
11:39 USCG Cutter Legare returns home after interdicting over 3,300 pounds of drugs
10:47 Ray Fitzgerald to rejoin Crowley as COO

2020 February 21

18:12 Digitization of KN: paper is no longer used in the operation of Klaipėda LNG terminal
17:48 NIBULON Shipyard is about to launch second non-self-propelled open type vessel
17:17 CMA CGM announces Emergency Space Surcharge from North Europe, Scandinavia & Poland to West Med, East Med, Adriatic & North Africa
16:59 New roll trailers put into operation at Bronka port
16:04 AS Tallink Grupp’s wholly-owned subsidiary AS Hansatee Cargo merged with Group’s wholly-owned subsidiary AS Tallink
15:25 Russia's Main Department of State Expertise approved adjusted design documentation under Nord Stream 2 project
15:02 OCEAN Industries orders MAN Propulsion Packages for Royal Canadian Navy tugs
14:13 Diana Shipping announces time charter contract for m/v Coronis with Koch and cancellation of the sale of a Capesize dry bulk vessel
13:01 COSCO SHIPPING Lines provides water and rail transport services
12:40 Wärtsilä LPG Fuel Supply System the first ever to undergo engine testing
12:12 ABS to class world’s largest B-Tank VLECs by Jiangnan
11:30 Coronavirus disease 2019 – IMO urges no unnecessary delays to ships
11:09 World’s first LPG-retrofit order exercises option for four additional engines
10:44 MABUX: Bunker market this morning, Feb 21
10:43 Biofouling demands collective, urgent and ‘proactive’ approach, stresses Bellona
10:09 Cod farming set for rebound as savvy investors rush to back Norcod
09:55 Bunker prices are slightly down at the port of Saint-Petersburg, Russia
09:43 GTT acquires Icelandic company Marorka, an expert in Smart Shipping
09:35 BlueWater Reporting closely monitoring blanked sailings amid coronavirus outbreak
09:34 Brent Crude futures price is down 0.73% to $58.88, Light Sweet Crude – down 0.61% to $53.55
09:16 Baltic Dry Index is up to 480 points

2020 February 20

18:27 SMOOTH PORTS Partners met and discussed in Livorno
18:07 UNIIQ invests in Tetrahedron’s innovative crane for next-gen wind turbines
17:52 RF Navy’s Admiral Kasatonov frigate left for Barents Sea to continue testing
17:30 Evergreen issues notice for reefer cargo to Shanghai、Ningbo and Xingang, China
17:17 Tersan Shipyard (Turkey) delivers lead crab catching and processing ship of Project ST184
17:00 West Africa Container Terminal to commence Phase 2 upgrade
16:53 Port of Rotterdam increases sales of LNG and VLSFO
16:53 Indonesia hosts new national workshop on maritime security risk
16:29 UN agencies collaborate to promote seafarers’ rights treaty
16:04 INOK TM and Admiral Makarov SUMIS sign agreement on cooperation
15:38 Rosmorport reports on its icebreaker support in Russian seaports as of February 17, 2020
15:11 Rosmorport changes tariffs for services offered at the seaport of Kaliningrad
14:47 BIMCO joins Japan to regulate carbon intensity of existing ships
14:25 ESPO published its Position Paper on European Green Deal objectives in ports
14:02 CHIMBUSCO starts to supply China-produced low sulphur bunker oil to international ships
13:43 Top-level speakers announced for Unmanned Maritime Systems Technology 2020 in London
13:20 Throughput of Russia’s river ports fell by 11.6%, from 143.1 million tonnes in 2010 to 126.5 million tonnes in 2019
13:01 BC Ferries names and christens the first two Island Class ferries
12:46 Bunker prices are flat at the Far East ports of Russia (graph)
12:31 National Marine Dredging Company and Royal IHC launch TSHD GHASHA
12:08 Port of Baku and Tamiz Shahar cooperate on environmental issues
11:48 Hapag-Lloyd improves operating result by more than 80 percent in 2019
11:41 Port of Gdynia widens its internal entrance to 140 m
11:15 CMA CGM announces PSS for exports from East Russia
10:52 Russian Maritime Register of Shipping introduces new scheme of oil and gas equipment approval
10:24 Main contractor Damen and more than a hundred companies contribute to Combat Support Ship
10:24 MABUX: Bunker market this morning, Feb 20
09:53 Ships of RF Navy’s Baltic Fleet left for Atlantic to perform combat training tasks
09:35 Brent Crude futures price is up 0.32% to $59.31, Light Sweet Crude – up 0.45% to $53.73
09:14 Baltic Dry Index is up to 465 points

2020 February 19

18:37 Eni launches hull for Coral Sul FLNG in offshore Mozambique
18:06 Port of Rotterdam aims to become the most sustainable biorefinery in Europe
17:52 NOVATEK’s 2019 profit grew 5.3 times YoY to RUB 865.5 billion
17:31 Royal IHC launches TSHD GHASHA for National Marine Dredging Company