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ResourceWise: Apr 25, '24
The bio-bunkering world is moving quickly as ResourceWise continues to track major announcements and updates in this emerging market.
An alliance of leading maritime industry players recently announced a joint venture to look into the use of ammonia as a clean fuel source within the marine fuel industry. While the move is very new, it reflects the same growing shift in market sentiment we’re seeing in areas such as sustainable aviation fuel (SAF).
Ammonia Ship-to-Ship Bunkering
Several organizations recently came together to announce a Memorandum of Understanding (MOU). MOUs refer to documents which outline an agreement on an action plan between two or more parties.
In this case, the MOU includes the following organizations:
- American Bureau of Shipping
- CALAMCO
- Fleet Management Limited
- Sumitomo Corporation
- TOTE Services
The group’s MOU spearheads a feasibility study focusing on establishing an all-inclusive and competitive supply chain for clean ammonia ship-to-ship bunkering on the US west coast.
The spotlight is on ammonia as a high potential option in the maritime sector. The fuel’s primary advantage over traditional fossil fuels is its emissions.
Ammonia produces zero CO2 upon combustion and has been recognized as a potential alternative marine fuel that can significantly curtail direct greenhouse gas emissions in the shipping industry.
This initiative aligns with the updated strategy of the International Maritime Organization. The IMO’s objective is to achieve net-zero emissions from international shipping by 2050.
Key ports for this study are located at the Port of Oakland, Benicia, and other significant U.S. West Coast spots yet to be announced.
About the Study
CALAMCO, a collective of materials growers based in California, is the largest ammonia distributor in the state. It operates as a cooperative with members such as fertilizer producers and farmers.
The feasibility study aims to explore the potential of utilizing CALAMCO’s existing ammonia storage terminal at the Port of Stockton. The process will initially launch a pilot demonstration project for ammonia bunkering for car carriers calling at the Port of Benicia and container vessels stopping at the Port of Oakland.
This pilot program will help to determine whether a broader adoption of ammonia as a marine fuel on the U.S. West Coast is possible. The Port of Benicia is a crucial vehicle-handling port in the region. Similarly, the Port of Oakland is considered one of the top 10 largest container ports in the US.
Because of its toxicity, safety evaluations are critical standards for the use of ammonia as a marine fuel. Various U.S. government agencies and experts will collaborate to work towards the standardization of safe operations and regulations.
A Collaboration for Decarbonizing Marine Fuel
The partnership among all members reflects a broader commitment to pursue decarbonization solutions within the marine industry:
- The American Bureau of Shipping will provide its expertise in using ammonia as a marine fuel.
- CALAMCO will offer its support and experience in ammonia in this expanded usage for bunkering.
- Fleet Management Limited will lend its technical expertise to the equation.
- Sumitomo will commit its resources through the construction of its first ship-to-ship ammonia bunkering base on the US West Coast.
- TOTE Services will also contribute to improving the environmental footprint within the maritime industry.
Each of these companies has already made strides toward decarbonization in their respective operations. Together through this partnership, all of them can achieve even greater outcomes in reducing marine fuel emissions and transitioning the industry.
ResourceWise will continue to follow this news as more information is released.
Get Bio-Bunkering Price Indexes and Insights with ResourceWise
Developments like this partnership reflect a clear movement in the maritime industry toward a carbon-neutral future. Staying informed of such changes is imperative for any future-focused business.
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Our team of experienced analysts works diligently to ensure our customers have current, relevant data for this emerging market. Those across the maritime and shipping industries can greatly benefit from our insights.
Learn more about the bio-bunkering market with an exclusive look at our Green Diesel report, "Biofuel Bunkering Gathers Pace." Click the link below to download.
