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Oil companies must explain how their new “Super Pollutant” shipping fuels ever came to market

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Oil companies must explain how their new “Super Pollutant” shipping fuels ever came to market. Image: Clean Arctic Alliance
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Responding to the discovery that some of the new blended low sulphur shipping fuels developed and marketed by oil companies to comply with IMO 2020 air pollution standards will actually lead to a surge in the emissions of a Super Pollutant known as Black Carbon, the Clean Arctic Alliance is calling for the International Maritime Organization (IMO) to support an immediate switch to distillate fuels for ships in the Arctic and develop a global rule prohibiting fuels with high Black Carbon emissions.

“If immediate action isn’t taken by the International Maritime Organization, the shipping industry’s use of very low sulphur fuel oil (VLSFO) – introduced to comply with the 2020 sulphur cap – will lead to a massive increase in Black Carbon emissions, and this will both accelerate the melting of Arctic sea ice and have a major impact on Earth’s climate,” said Dr Sian Prior, Lead Advisor to the Clean Arctic Alliance, a coalition of non-governmental organisations working for a ban on heavy fuel oil from Arctic shipping.

VLSFOs have been introduced in response to the 2020 “sulphur cap”, the IMO’s regulation that enforces a global fuel sulphur limit for shipping at 0.50% from 1 January 2020, in order to protect human health and the environment [1]. A paper submitted by Germany and Finland to the IMO’s PPR7 meeting in February found that these new blends contain high levels of aromatic compounds which, when combusted, lead to an increase in emissions of Black Carbon when compared with heavier fuels and distillate fuels [2]. Black carbon is a short-lived climate forcer, second only to CO2 in terms of international shipping’s contribution to global climate. Black Carbon represents 7% to 21% of shipping’s overall GHG equivalent impact on the climate [3].

“There are serious questions to be answered about how these blended super pollutant ‘Frankenstein’ fuels ever came to market. It beggars belief that amidst a global climate crisis, the marine fuel industry could develop these VLSFOs without knowing their effect on Black Carbon emissions and the climate, particularly in the Arctic – especially as the IMO has spent almost a decade considering how to reduce Black Carbon emissions from shipping,” said John Maggs, Senior Policy Advisor at Seas at Risk.

The Clean Arctic Alliance has written a letter containing the following questions to representatives of the marine fuel industry who prepared the definitive guidance on the supply and use of 0.5% sulphur marine fuel only months ago, to ask [4]:

  • Were you aware that these new low sulphur heavy fuel blends had higher aromatic content?
  • Were you aware of the link between higher aromatic content in fuels and higher BC emissions?
  • If the answer to the above questions is “yes”, then why did you not immediately seek to halt the production of these fuels and alert the IMO?

The letter was sent to IACS, IBIA, IPIECA, IMarEST, IUMI, OCIMF, and the Royal Institute of Naval Architects – all of whom have consultative status to the IMO. The letter was also sent to ARA, Concawe, CIMAC and JPEC. All of the organisations are named as co-authors of of the Joint Industry Guidance on “The supply and use of 0.50%-sulphur marine fuel” published in August 2019 [5].

“At next month’s PPR 7 meeting in London, the IMO must support an immediate switch to distillate fuels for ships in the Arctic and agree to develop a global rule prohibiting fuels with high Black Carbon emissions; in addition, IMO Members must adopt a resolution calling on shipowners, charterers, and fuel providers and other stakeholders to implement these measures on a voluntary basis while new regulations are developed and enter into force,” concluded Prior.

How the Super Polluter Fuels Were Discovered 

Germany and Finland have submitted a paper to February’s Sub-Committee on Pollution Prevention and Response (PPR7) at the International Maritime Organization detailing the results of a measurement campaign which analysed the impact of different fuel oil qualities on Black Carbon emissions, including new low sulphur heavy fuel oil (LSHFO) which comply with the 2020 sulphur cap [2]. The paper states that the findings “clearly indicate that new blends of marine fuels with 0.50% sulphur content can contain a large percentage of aromatic compounds which have a direct impact on Black Carbon emissions”, and “demonstrated that the combustion of fuels with higher aromatic content emits higher concentrations of Black Carbon”.

The Joint Policy Guidance on the supply and use of 0.5% marine fuel published by the marine fuel industry in August 2019, makes no mention of low sulphur fuel blends containing high levels of aromatic compounds nor of an increase of Black Carbon emissions of potentially up to 2.45 times that of distillate fuel [5].

When burnt these new fuel blends resulted in a 10 to 85% increase in Black Carbon emissions compared to heavy fuel oil and between 67% to 145% (a 2.45 times increase) when compared to DMA – the highest quality distillate fuel (along with DMZ) that is normally supplied for marine use. This work has profound implications for IMO’s efforts to reduce the impact of Black Carbon emissions on the Arctic, and for the shipping and oil refinery sectors’ response to climate change.

Did the fuel suppliers know that this would happen?

There were warning signs. The 2017 update of the IMO 2012 study Investigation of Appropriate Control Measures (Abatement Technologies) to Reduce Black Carbon Emissions from International Shipping (PPR 5/INF7) stated that “fuel factors such as heavy metal, oxygen, asphaltene and poly-aromatic hydrocarbon and ash content contribute to combustion characteristics” and thus Black Carbon emissions. Moreover, high aromatic content of fuels was recognized as likely having an influence on Black Carbon emissions, and was one of the contributors to the variability in Black Carbon reductions, i.e. 33% and 45%, when switching from residual to distillate fuels [6].

What’s the history of Black Carbon as a policy issue for shipping?

In 2011, the United Nations Economic Cooperation for Europe (UNECE) urged the IMO to act on Black Carbon, while in 2013/14 the Climate and Clean Air Coalition (CCAC) renewed a call for action on ship Black Carbon [7,8]. In 2017, the Arctic Council established a target of a 25 – 33 percent reduction in Black Carbon emissions below 2013 levels by 2025 for all sources [9].

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MOL joins GCMD as impact partner to accelerate decarbonisation

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MOL joins GCMD as impact partner to accelerate decarbonisation. Image: Pixabay
MOL joins GCMD as impact partner to accelerate decarbonisation. Image: Pixabay
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The Global Centre for Maritime Decarbonisation GCMD and MOL announced the signing of a five-year Impact Partnership agreement. On the same day, both parties held a signing ceremony at the GCMD office in Singapore.

Decarbonisation in the maritime industry is a challenge that needs to be achieved through accelerating collaboration and increasing investment by shipping companies, their customers, ports, energy suppliers and public sector actors. As an Impact Partner of GCMD, MOL will utilise its expertise developed over their long history and make various contributions and collaborations through its participation in GCMD’s projects, including providing access to vessels, operating data and evaluation reports so that internal learnings can be shared publicly and used for future trials.

MOL is one of the world’s leaders in the maritime industry and has been leading worldwide discussions on achieving decarbonisation. The carbon budget concept imposes a ceiling to the cumulative amount of greenhouse gas (GHG) that can be emitted globally in order to limit global temperature rise to 1.5 degree Celsius by 2050. Intermediate targets to reduce emissions, in addition to a net-zero target, are necessary. While plans are in place to adopt low or zero emissions vessels in the future, it is important to deploy measures to reduce emissions now. Such measures include the use of low-carbon and transition fuels that are available today, and deploying energy savings devices onboard vessels. MOL will bring its extensive capabilities and experience to bear as it joins GCMD and existing partners to accelerate international shipping’s decarbonisation.

Professor Lynn Loo, CEO of the Global Centre for Maritime Decarbonisation, said: “We are proud to have MOL, one of the leading shipowners in Japan, come onboard as an Impact Partner. We are excited to tap on MOL’s track record in developing technical energy efficiency measures to broaden our perspective as we scope an initiative to help increase industry adoption of measures that can increase fuel efficiency of ships.”

Toshiaki Tanaka, Representative Director, Executive Vice President Executive Officer, and Chief Operating Officer of MOL, said: “We are very pleased to be a partner of one of the most important global coalitions. We will make our biggest effort to contribute and accelerate progress towards the net zero future in maritime industry, together with GCMD and all its partners.”

About the Global Centre for Maritime Decarbonisation

The Global Centre for Maritime Decarbonisation (GCMD) was set up on 1 August 2021 as a non-profit organisation. Our strategic partners include the Maritime and Port Authority of Singapore (MPA), BHP, BW Group, Eastern Pacific Shipping, Foundation Det Norske Veritas, Ocean Network Express, Seatrium, bp, Hapag-Lloyd and NYK. Beyond the strategic partners, GCMD has brought on board 15 partners that engage at the centre level, in addition to more than 80 partners that engage at the project level.

Strategically located in Singapore, the world’s largest bunkering hub and second largest container port, GCMD aims to help the industry eliminate GHG emissions by shaping standards for future fuels, piloting low-carbon solutions in an end-to-end manner under real-world operations conditions, financing first-of-a-kind projects, and fostering collaboration across sectors.

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Hapag-Lloyd partners with DB Schenker to decarbonise supply chains

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Hapag-Lloyd partners with DB Schenker to decarbonise supply chains. Image: Hapag-Lloyd
Hapag-Lloyd partners with DB Schenker to decarbonise supply chains. Image: Hapag-Lloyd
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Hapag-Lloyd has entered into a partnership with DB Schenker for the purpose of decarbonising supply chains. Following the launch of “Ship Green” in May, the renowned logistics provider has selected Hapag-Lloyd’s sustainable transport solution as part of its sustainability initiatives.

DB Schenker and Hapag-Lloyd have signed an agreement for emission-reduced container transports with a waste- and residue-based biofuel. By end of 2023, DB Schenker plans to claim approximately 3,000 metric tonnes of carbon dioxide equivalent (CO2e) emissions avoidance. This is based on at least 1,000 tonnes of pure biofuel.

“We are excited about this new partnership with DB Schenker as we share the common goal of making logistics more sustainable. Collaborations like these set a clear signal in the industry and are another example of a step-by-step approach to further decarbonise supply chains”, said Henrik Schilling, Managing Director Global Commercial Development at Hapag-Lloyd.

“I am very pleased that together with Hapag-Lloyd we are setting another example for sustainability in our industry. This partnership further enlarges our global biofuel offer in ocean freight. With this commitment we are one step closer to our goal of becoming carbon-neutral”, said Thorsten Meincke, Global Board Member for Air & Ocean Freight at DB Schenker.

Hapag-Lloyd has launched the Ship Green product to offer its customers emission-reduced ocean transports. Based on biofuel, customers of Hapag-Lloyd can add Ship Green as an additional service to their existing bookings – thereby avoiding CO2e emissions. Using the so-called “Book & Claim” chain of custody, Hapag-Lloyd can attribute avoided emissions to all ocean-leg transports, regardless of the vessel and route used. Ship Green is available for all shipments containing standard, hardtop or tank equipment. By offering Ship Green, Hapag-Lloyd is continuing along its path towards achieving climate-neutral fleet operations by 2045.

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EU member states agree to the “FuelEU Maritime” regulation

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EU member states agree to the "FuelEU Maritime" regulation. Image: Port of Hamburg
EU member states agree to the "FuelEU Maritime" regulation. Image: Port of Hamburg
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EU Member States cleared the way to bring sustainable renewable fuels into maritime transport. They approved the “FuelEU Maritime” regulation. The EU Parliament had also voted in favour of the agreement reached in the trilogue procedure.

The new requirements will apply to ships with a gross tonnage of more than 5,000 entering, leaving or staying in ports in the territory of an EU Member State. In addition, shore-side electricity will be mandatory for container and passenger ships from 2030. The use of synthetic fuels from renewable energies will be specifically promoted for shipping.

Federal Minister of Transport Dr Volker Wissing:
After we were recently able to achieve a breakthrough for maritime climate protection at UN level, we are now pushing the actual transformation towards climate-neutral shipping at European level with the “FuelEU Maritime” initiative. The draft regulation is open to technology and takes into account the special competitive conditions in the maritime transport sector. The main objective is to increase the demand for renewable and low-carbon fuels and their consistent use, thereby decisively reducing greenhouse gas emissions in maritime transport. The initiative is thus expected to play a fundamental role in the implementation of the European Climate Change Act for shipping.

Federal Environment Minister Steffi Lemke:
Today the EU has set a decisive course for more climate protection and the use of renewable fuels in maritime transport. Shipping companies will continue to rely on fuels in the future, because electric drives are not yet an option for long-distance transport. In maritime transport, e-fuels from renewable energies are therefore a sensible climate-friendly alternative. With the new requirements, the EU is giving manufacturers and shipping companies the necessary planning security, driving forward the development of modern technologies and making renewable fuels for maritime transport ready for the market. But there are also shadows: The fact that fuels from fossil sources and nuclear energy are also permitted as a compliance option is regrettable. The German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV) will continue to advocate the use of predominantly synthetic fuels from renewable energy sources in order to make maritime transport climate neutral.

FuelEU Maritime lays down uniform EU-wide rules for limiting the greenhouse gas intensity of the energy used on board a ship, and thus above all the fuels. The regulation from the Fit for 55 package stipulates that shipping in the EU must reduce its emissions by 2 percent from 2025, 6 percent from 2030, 14.5 percent from 2035, 31 percent from 2040, 62 percent from 2045 and 80 percent from 2050. The GHG intensity reduction targets are set against the 2020 average GHG intensity of energy consumed on board ships. The greenhouse gas emissions of all fuels are assessed on the basis of a life cycle assessment (so-called well-to-wake (WtW) approach that includes the greenhouse gases carbon dioxide, methane and nitrous oxide). All fuels are permitted as a compliance option; the legislative initiative is thus technology-neutral.

The use of synthetic fuels is encouraged by a special mechanism: if the share of synthetic fuels from renewable energy sources (so-called “renewable fuels of non-biological origin, RFNBO) in the fuel mix does not exceed one percent in 2031, a mandatory minimum quota of two percent for these RFNBO fuels will automatically come into force from 2034. Beyond the use of alternative fuels, the FuelEU Maritime Regulation obliges container and passenger ships in ports in the territory of a Member State to use shore-side electricity or alternatively zero-emission technologies for on-board energy supply.

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. It shall apply from 1 January 2025, with the exception of certain Articles which shall apply from 31 August 2024.

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