28th November 2024

Rotterdam-Singapore Green and Digital Shipping Corridor biomethane bunkering a “major milestone in the alternative fuels transition” – says SEA-LNG

The Rotterdam-Singapore Green and Digital Shipping Corridor (GDSC) has conducted a successful pilot for the bunkering of mass-balanced liquefied biomethane (LBM/bio-LNG) at the Port of Rotterdam (PoR).  A total of 100 tonnes of mass-balanced LBM was supplied by Shell on 19th October to the CMA CGM container ship CMA CGM TIVOLI.

Steve Esau, COO of SEA-LNG, commented on the latest progress: “With COP 29 having recently drawn to a close, we’re delighted to see one of the key outcomes from COP 26, the Clydebank Declaration to develop green shipping corridors, bearing real fruit via the Rotterdam-Singapore corridor and liquefied biomethane (LBM).

“With SEA-LNG leading the Methane Track of the Rotterdam-Singapore Green Corridor, we have been developing pilots to test regulatory and buyer acceptance of ISCC EU certified mass balanced LBM as a marine fuel in both Rotterdam and Singapore.  Our aim is to help create the commercial framework enabling LBM and other alternative marine fuels to scale.”

“This moment marks a major milestone in the alternative fuels transition and has required collaboration from across the entire biomethane value chain, from producers, terminal operators, ports, shipping lines and bunker fuel suppliers.  It sets a precedent for other green corridor initiatives and provides lessons for the shipping industry’s transition to alternative marine fuels.”

Produced from waste-based feedstock1, the LBM used in this pilot provides a lower-emission alternative to conventional marine fuels. This initiative supports the GDSC’s broader commitment to advancing the adoption of near-zero emission fuels along one of the world’s busiest shipping trade routes.

In line with the pilot’s requirement, Shell issued a Proof of Sustainability certificate for the LBM fuel, verifying its compliance with European Union regulations.  The certificate will undergo auditing by third-party organisations accredited by International Sustainability and Carbon Certification-European Union (ISCC-EU)2.

The pilot applied the mass balance methodology3 to track the movement of the LBM through the supply chain and ensure compliance with ISCC-EU certification standards, Renewable Energy Directive III, and FuelEU Maritime regulations. This end-to-end certification and tracking supports the development of methodologies, which will need to be consistent with the accounting framework adopted by countries under the UN Framework Convention on Climate Change. This test will also provide CMA CGM with the opportunity to ensure that mass balanced LBM is properly recognised by the authorities in relation to the EU ETS regulation.  A similar LBM bunkering pilot with full sustainability certification is planned at the Port of Singapore.

Established in August 2022 by PoR and the Maritime and Port Authority of Singapore (MPA), the Rotterdam-Singapore GDSC aims to accelerate maritime decarbonisation and digitalisation.  To-date, the GDSC initiative, which aims to foster collaboration among global ports and stakeholders, has brought together 28 global value-chain partners across shipping lines, fuel suppliers, port authorities and operator, industry coalitions, banks, leading institutes of higher learning and knowledge partners.

Read the SEA-LNG biomethane fact sheet for more information on the LBM fuel.

Appendix

[1] The feedstock used for the LBM bunkered is classified under Annex IXa of the Renewable Energy Directive III.

2 The International Sustainability and Carbon Certification (ISCC) is a certification system that ensures compliance with international sustainability standards for all sustainable feedstock, such as the production of bio-methane. ISCC-EU specifically applies to the raw materials and fuels stated in the European Union’s Renewable Energy Directive (RED).

3 The mass balance methodology is a type of chain of custody approach that allows stakeholders to trace the sustainability of materials moving along the value chain through a “paper trail”. In the context of the pilot, mass balancing involves the blending of sustainability certified bio-methane with non-sustainability certified conventional LNG across transport, storage and distribution infrastructure within the EU grid.

“With SEA-LNG leading the Methane Track of the Rotterdam-Singapore Green Corridor, we have been developing pilots to test regulatory and buyer acceptance of ISCC EU certified mass balanced LBM as a marine fuel in both Rotterdam and Singapore.  Our aim is to help create the commercial framework enabling LBM and other alternative marine fuels to scale.”

Steve Esau, COO of SEA-LNG,