From the magazine – Conventional bunker fuels that the maritime industry has been using so far are a fossil-based product from the refining industry. With new, alternative, fuels entering the market, this will no longer be the case. What is the Port of Rotterdam’s role in this changing bunker market?
This article was written by Bas Lenferink, Maritime Technology student and editor of SWZ|Maritime, lenferinkb@outlook.com. It was originally published in SWZ|Maritime’s June 2024 issue.
This article came about after a conversation with the Port of Rotterdam Authority‘s Steven Jan van Hengel, sr. business development manager energy transition and focusing on future fuels, and Ronald Backers, advisor business intelligence liquid bulk.
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Towards a new global market
With over 28,000 seagoing vessel movements per year, Rotterdam is Europe’s biggest port. As a hub, many vessels choose Rotterdam as their port to bunker. This also makes it Europe’s biggest bunker port today.
Rotterdam is a full-service port. Because of the port’s size and the many vessel movements concentrated within it, a lot of nautical service providers have set up shop in Rotterdam. Economies of scale make it lucrative for companies to provide bunker services and fuels are readily available in Rotterdam. The same goes for ports such as Singapore, Fujairah and Houston, all big bunker ports.
We now see a change from pure heavy fuel oil (HFO) to HFO blended bio-diesel and LNG and a rise in methanol is expected in the next ten years, followed by demand for ammonia and (liquid) hydrogen. These are all, except for hydrogen, substances that are already being shipped to and stored in Rotterdam for uses in other industries. The infrastructure is already there. Tank terminals in Rotterdam are equipped to store both methanol and ammonia, but need to scale up for the future.
Regulations around bunker procedures are in development for ammonia and hydrogen. Bunkering LNG and methanol is already allowed. Apart from a changing bunker market, it will become a market with new players. The new fuels are no longer an oil industry product for which there is no alternative use, but a product in their own right. A new global market will develop as many of these fuels will be produced in other places than Rotterdam.
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Port Readiness Levels
To ensure a smooth development of new bunkering procedures, the Port of Rotterdam has created Port Readiness Levels (PRLs). The PRLs provide a framework for the implementation of new procedures and show the maturity of implementation. The frameworks are developed in cooperation with the suppliers, off takers, service providers and various authorities to ensure a smooth transition.
The Port of Rotterdam’s objective is to be prepared for future fuels ahead of the market. As a result, Rotterdam was the first port in which a ship-to-ship methanol bunkering procedure took place back in 2021 and the port can build on its extensive methanol hub. Following the same PRL approach, the Port of Rotterdam is currently getting ready for the bunkering of ammonia and hydrogen.
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Cross-border cooperation
The Port of Rotterdam is also collaborating with the ports of Singapore and Goteborg to kick-start the use of alternative fuels. Between Rotterdam and these ports, a so-called Green Corridor is in development. The Green Corridor with Singapore is driven by a consortium of a dozen parties (port authorities, shipping companies and fuel suppliers) that join forces to ensure the availability of alternative bunker fuels. Stable availability allows shipping companies to make the investments needed to adapt their ships to new fuels.
The Green Corridors are not the only cross-border cooperations regarding this topic. The PRLs have caught the eye of many other port authorities and by now, the Port of Rotterdam is teaming up with the IAPH (International Association of Ports and Harbours) for the adaptation and implementation of the PRL framework.
Overall, a lot of focus is placed on making sure regulations and procedures are ready for a new era with new fuels. The Port of Rotterdam aims to be a driving force by creating the right conditions and facilitate pilots to be ready for future fuels.
Picture: Mass flow meter on the Vorstenbosch, the largest bunker ship in the Port of Rotterdam (photo Ries van Wendel de Joode).
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