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Mitsui O.S.K. Lines and LNG Terminal Wilhelmshaven sign a contract to build and charter an LNG terminal ship

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Mitsui O.S.K. Lines and LNG Terminal Wilhelmshaven sign a contract to build and charter an LNG terminal ship. Image: Wikimedia/ Pline
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MOL and LTW (LNG Terminal Wilhelmshaven) have signed a contract to build and charter an LNG terminal ship—known in the industry as a Floating Storage and Regasification Unit (FSRU)—for the planned LNG landing terminal in Wilhelmshaven on the North Sea.

LTW is the project developer and operator behind the future LNG terminal in Wilhelmshaven and a fully owned subsidiary of Uniper S.E. The FSRU will be built in a shipyard belonging to South Korean company DSME (Daewoo Shipbuilding Marine Engineering Co., Ltd., Geoje, Korea), and then chartered by LTW for 20 years. It has been planned and custom designed by the two contracting parties in accordance with the local and environmental requirements for the German market and the Wilhelmshaven site.

The FSRU constitutes the heart of the future terminal and will make it possible to offload, store and regasify LNG for the German market. It will be moored off the coast not far from Wilhelmshaven and will handle incoming LNG tankers there.

The regasified gas will then be pumped from the FSRU along a short
connecting pipeline under the sea to the port facilities and finally fed into the German gas transmission network. This eliminates the need to construct complex regasification facilities on land. This optimized planning will minimize the environmental impact both on land and on the seabed by a non-disruptive crossing of the natural habitat identified in the environmental studies.

Uniper Member of the Board and Chief Operating Officer David Bryson says: “The agreement to build and charter this FSRU is an important milestone for both parties on the journey to establishing an LNG terminal in Wilhelmshaven; it underlines the joint desire for collaboration on this ambitious project. This new agreement will build on the successful and trusting collaboration with MOL on previous major projects in the
LNG ship market. The LNG terminal in Wilhelmshaven is a long-term project based on the prediction that demand for imported natural gas on the German and European energy markets will increase significantly
over the coming years. Based on Uniper’s many years of experience in the European gas business and project management, LTW is pushing ahead with the terminal project in Wilhelmshaven to give companies from all over the world optimal access to customers in Europe — and, vice versa, to open up a new supply channel for customers.”

MOL Executive Officer Hiroyuki Nakano says: “We are excited to move one step further to materialise Germany’s first Liquefied Natural Gas receiving project. Our Floating Storage and Regasification Unit of some 263,000m3 storage capacity is of a unique tailored design to meet all customer requirements to provide economical regasification service and comply with German Environmental Regulations. Our mission from this special moment is to execute the project and deliver the unit on time. MOL has expanded its
global FSRU business over the past few years. We are confident that our operational and technical experience gained will enhance the project in Germany and provide a seamless, safe and efficient service to LTW.”

Maritime

World’s first full scale ammonia engine test – an important step towards carbon free shipping

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World’s first full scale ammonia engine test - an important step towards carbon free shipping. Image: The project leaders pictured at the Sustainable Energy Catapult Centre’s test facility at Stord, Norway from left to right: Egil Hystad, Wärtsilä, Willy Wågen, Sustainable Catapult, and Kjell Storelid, Wärtsilä.
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The technology group Wärtsilä, in close customer cooperation with Knutsen OAS Shipping AS and Repsol, as well as with the Sustainable Energy Catapult Centre, will commence the world’s first long term, full-scale, testing of ammonia as a fuel in a marine four-stroke combustion engine. The testing is made possible by a 20 MNOK grant from the Norwegian Research Council through the DEMO 2000 programme.

“This is a great example that illustrates the importance of dedicated petroleum R&D. This DEMO 2000 project is another steppingstone for reaching our ambitious climate targets and it is also aligned with our recently published hydrogen strategy.  We need to develop and use new technologies that reduce emissions. We are very happy to support development work that can lead to increased use of ammonia as a fuel in shipping and in the offshore sector. Know-how from this project will also provide important input to the development of regulations for the use of ammonia and other low-carbon fuels”, says Tina Bru, Norwegian Minister of Petroleum and Energy.

Ammonia is promising as a carbon-free fuel for marine applications, in view of the maritime industry’s need to fulfil the International Maritime Organisation’s vision of reducing greenhouse gas emissions from shipping by at least 50 percent by 2050. Furthermore, ammonia has huge potential for providing green energy to remote power systems, such as offshore installations on the Norwegian Continental Shelf.

Development work by Wärtsilä, as it prepares for the use of ammonia as a fuel, continues with this testing programme, which will be the world`s first full-scale four-stroke combustion engine test. The project will commence in the Sustainable Energy Catapult Centre’s testing facilities at Stord, Norway during the first quarter of 2021.

“We are really excited to further develop and understand the combustion properties of ammonia as a carbon free fuel in one of our multi-fuel engines”, says Egil Hystad, General Manager, Market Innovation at Wärtsilä Marine Business.

“Ammonia storage and supply systems will be designed and developed for maximum personal safety, and in parallel with the Fuel Gas Handling System under development as part of the EU project ShipFC. This project is coordinated by NCE Maritime CleanTech, and it involves an ammonia driven fuel cell which will be tested on the Eidesvik Offshore supply vessel, Viking Energy”, Hystad continues.

From testing to real operations

Wärtsilä, as part of its development work on future fuels, has studied the use of ammonia as a future carbon-free fuel through the ZEEDS initiative. The company’s first ammonia combustions tests were commenced in Vaasa, Finland, in winter 2020, and will continue with this long-term testing at the Sustainable Energy Catapult Centre facilities in Stord.

“We are extremely pleased to be part of this project that will prove for the industry the robustness of ammonia as fuel. The project confirms our test facilities’ and Norway’s leading position within the testing and development of solutions for the use of maritime carbon-free fuels”, says Willie Wågen, CEO of Sustainable Energy Catapult Centre. The centre is part of the Norwegian Catapult programme that facilitates a national infrastructure for innovation. The programme is run by SIVA in close cooperation with Innovation Norway and the Norwegian Research Council and financed by the Norwegian Ministry of Trade, Industry and Fisheries.

The full-scale fuel testing programme can pave the way for ammonia engines to be used in real vessel operations within few years, and several shipowners have shown interest in this possibility. It will also provide important insights into the long-term effect of an ammonia fuelled engine in relation to other systems and components in a vessel, including the required safety measures.

Close cooperation between the government and industry

“A future implementation of ammonia as a carbon free fuel, combined with clean energy production from offshore wind or other renewable energy sources can be the start of a new industrial era for the Norwegian industry”, Egil Hystad points out.

“The Norwegian culture for collaboration and knowledge sharing across different companies and sectors, is a great support in closing big technology gaps. The assistance, cooperation and funding from governmental institutions are essential to drive the change towards a carbon free future”, he continues.

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Environment

Samsung Heavy Industries and Bloom Energy advance plans for clean power ships with joint development agreement

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Bloom Energy and Samsung Heavy Industries, a part of Samsung Group, have signed a joint development agreement to design and develop fuel cell-powered ships. The two companies will work together to realize their vision of clean power for ships and a more sustainable marine shipping industry.

“By signing this joint development agreement, SHI has a plan to develop eco-friendly ships that will lead the future of the industry,” said Mr. Haeki Jang, vice president of shipbuilding & drilling sales engineering at SHI. “Our goal is to replace all existing main engines and generator engines with these highly efficient solid oxide fuel cells to align with the International Maritime Organization’s 2030 and 2050 environmental targets.”

SHI is actively participating in all of the relevant activities during the joint development, from early studies to project completion, in order to build highly efficient fuel cell-powered ships. In alignment, Bloom Energy has created a dedicated, cross-functional team of engineers to adapt Bloom Energy’s Servers to the unique requirements of the marine environment.

SHI and Bloom Energy are actively working towards the next milestone in this development with a target to present the design to potential customers in 2022. Following commercialization, the two companies anticipate that the market for Bloom Energy Servers on SHI ships could grow to 300 megawatts annually.

This joint development work aligns with the International Maritime Organization’s mandate to meet emissions reduction targets by 2050. Because the fuel cells create electricity through an electrochemical reaction, without combusting the fuel, these ships would be able to improve air quality with a reduction of particulate emissions, including NOx and SOx, by more than 99 percent, and shrink carbon emissions.

“The marine shipping industry has the ability to make a substantial impact on emissions and air quality at ports and across our planet,” said KR Sridhar, founder, chairman and CEO of Bloom Energy. “We see a collaboration with one of the world’s largest shipbuilders, SHI, as a moment to make measurable strides in reducing emissions and extending our mission for clean, reliable energy to the seas.”

The joint development agreement between SHI and Bloom Energy follows an Approval in Principle for fuel cell-powered Aframax crude oil tankers from DNV GL, the internationally accredited marine shipping registrar and classification society, announced in September 2019. The next class of ship to be submitted for design approval is the LNG carrier.

 

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Maritime

Gasum opened a new shipping fuel station at Ports of Stockholm

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Gasum opened a new shipping fuel station at Ports of Stockholm. Image: Gasum
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Gasum’s new bunkering station for liquefied gas was taken into use in mid-June. The station is located at Port of Nynäshamn, Sweden on the premises of Ports of Stockholm. The new station includes new bunkering solutions enabling ships to bunker environmentally friendly fuel faster than ever.

After a year of construction, the new bunkering station is finally ready to serve existing and new customers. It enables bunkering at high speed from two trucks at the same time. The station set-up and the specialized trucks now being used allows bunkering to take place at the same time as unloading or loading operations. Ferries were earlier bunkered using single trucks which was both time consuming and affected the ferries’ main operations and schedule.
The new bunkering station is frequently used by two of Destination Gotland’s gas ferries.
“Being able to bunker fuel from the new station is a big step forward for our operations. We fuel faster, more efficiently and during our normal operation hours. This in turn leads to a better service experience for our customers,” says Christer Bruzelius, CEO of Destination Gotland.
“The station’s fit-for-purpose high speed pumps allow the bunkering operation to take just 45 minutes. Passengers disembark and embark and goods are unloaded and loaded while bunkering. High precision and prompt deliveries from our side are needed in order to keep to the vessels’ ordinary schedule,” explains Jonas Åkermark, Sales Manager, Gasum.
The station is located at Port of Stockholm premises, very close to the existing Gasum LNG terminal. Gasum’s LNG trucks efficiently transport the fuel the short distance of 5 kilometers from the terminal to the station.“Ports of Stockholm have high environmental ambitions.
An important aspect is to support our customers in their work towards a more sustainable and efficient shipping. Vessels powered by liquefied natural gas  including a biogas blend, are showing us how to reduce the environmental impact. This example could also encourage the shipping industry to change to more sustainable fuel,” says Fredrik Lindstål, Board Director of Ports of Stockholm.
Gasum supplies both liquefied natural gas and liquefied biogas or a blend of the two from the station. LBG is a renewable energy source. Ships blending LBG into their fuel will reduce their environmental life-cycle emissions by up to 90%.

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