Happiness and worries about biodiesel helping shipping reduce carbon emissions| ③ Observation on the biodiesel industry

How to reduce carbon emissions in shipping ships? The industry believes that there are three main ways.

Shipowners reduce ship carbon emissions through operational measures (cleaning the hull, modifying the bulbous bow of the engine, using more environmentally friendly and efficient coated fuels, etc.), which can reduce energy consumption by no more than 15%.

By using big data, artificial intelligence, etc. to optimize routes, the overall reduction in carbon emissions will not exceed 10%.

Alternative ship fuel use has been reached in the industry that it is the most important way to ultimately achieve the greenhouse gas emission planning goals of the entire shipping industry.

It is reported that in recent years, the entire shipping industry has been actively using ship alternative fuels, and biodiesel is one of them. Recently, the "Action Plan for Large-scale Transportation Equipment Renewal" issued by 13 departments including the Ministry of Transport has proposed to vigorously support the application of new energy and clean energy, including biodiesel, in transportation ships.

Tian Ming, general manager of the Enterprise Management and Development Department of China Shipbuilding Fuel Co., Ltd., told this reporter: "Judging from the use of biofuel oil in domestic and foreign shipments, biodiesel has broad application prospects in the shipping industry. It is of great practical significance to solve the problem of future shipping companies needing sufficient alternative fuel supply."

International Maritime Organization's carbon reduction goals bring opportunities for the development of biodiesel

According to the latest global ship fuel consumption data released by the International Maritime Organization (IMO), in 2030, global ship fuel consumption will be approximately 300 million tons.

Our reporter learned that IMO has made clear plans for greenhouse gas emission reduction targets for the shipping industry. For example, in 2030, the total greenhouse gas emission reduction of the entire shipping industry will be reduced by 20% and strive to be 30%; in 2040, The overall decline in greenhouse gas emissions will reach 70%-80%; the goal will be to achieve net zero emissions by 2050.

Some industry insiders have analyzed that the above plan is only the overall planning goal determined by IMO, and as extreme weather continues to appear throughout the global environment, the above planning goals may continue to be tightened. From the perspective of the development of the entire shipping industry, the shipping industry, including the industry mainly engaged in ship fuel filling, will be affected by IMO policies.

It is understood that currently, Hapag-Lloyd, the world's fifth-ranked marine transportation company, will purchase biofuels in 2023 from the previous 100,000 tons to 200,000 tons.

Maersk Shipping Company, a global benchmark company, is also actively purchasing biodiesel to meet future greenhouse gas emission reduction targets. In 2022, its procurement volume will reach 350,000 tons. In 2023, the overall green marine fuel procurement volume will increase by 11% year-on-year, of which biofuel procurement volume is approximately 390,000 tons.

In addition, Singapore is the world's largest ship refueling port. According to data from January to July this year, the entire biofuel filling volume has reached 330,000 tons, a year-on-year increase of 43%.

According to IMO statistics, in 2023, the total fuel consumption of ships with a total tonnage of more than 5000 tons in the world will be 211 million tons, down 2 million tons from 213 million tons in 2022; from the perspective of carbon emissions, carbon emissions in 2023 will be 655 million tons, a decrease of 1.4%.

IMO statistics show that the total amount of biofuel filling in 2023 will be approximately 390,000 tons, a rapid growth rate compared with 230,000 tons in 2022.

Tian Ming pointed out that the decline in global ship fuel consumption is mainly affected by alternative ship fuels. Alternative fuels, including biodiesel, will develop rapidly throughout the shipping industry in 2023.

Our country is a Class A member of the IMO. IMO's regulatory requirements on shipping industry and ship fuel determine the overall development of my country's shipping industry, including the ship fuel filling industry in the future.

"One point that needs to be noted is that 2023 - 2030 is the mid-term period of the IMO's entire greenhouse gas emission plan target emissions. A large number of low-carbon and zero-carbon ship fuels are in the research and development and initial stages. During this period, the country has adopted market mechanisms to encourage the use of clean communication fuels and encourage the application of energy conservation and emission reduction technologies. After 2030, under the IMO's clear requirement to use more low-carbon and zero-carbon ship fuels, It will be able to better meet the needs of the development of my country's overall shipbuilding industry in the future." Zhang Dayong, deputy secretary-general of China Industrial Development Promotion Association and secretary-general of the Biomass Energy Industry Branch, pointed out.

Domestic biodiesel is developing rapidly in ship applications and has obvious emission reduction effects

In order to promote domestic consumption of biodiesel, the National Energy Administration has identified 22 pilot projects for the promotion and application of biodiesel.

According to Tian Ming, China ships filling one ton of biofuel oil B24 (fuel oil mixed with biodiesel and D6 fuel oil) in Shenzhen can reduce carbon dioxide emissions by 21%. "Biodiesel is a ready-to-use fuel that does not require transformation of the upstream, middle and lower reaches of the storage and supply infrastructure. At present, in addition to traditional refueling ships that can supply biofuels below B24, many ship refueling companies are now building higher The ratio is filled with barges to ensure the needs of future shipowners."

"The specific emission reduction is related to the proportion of biodiesel added. If the biodiesel produced in China is calculated according to European standards, the emission reduction per ton of B24 will be nearly 1.5 tons." Deng Jinhua, chairman of Hubei Tianji Bioenergy Co., Ltd., told this reporter.

It is understood that Qingdao has a key international port and is now carrying out a pilot biodiesel filling in a ten-ton maritime rescue vessel. Cao Yanjun, head of Qingdao Energy Group, said: "Now, the port has facilities for reconciliation and testing. In the future, there will be a large potential demand for marine biodiesel. We hope to give full play to the advantages of the port."

PetroChina Fuel Oil Co., Ltd. has carried out bonded biodiesel (imported biodiesel is re-sold domestically) filling in Zhoushan, Shanghai, Guangzhou, Shenzhen and Xiamen. It is expected that the marine fuel filling volume will exceed 4 million tons this year. According to the person in charge of the company, the company is now actively promoting the marine biofuel business. Currently, it has achieved regular filling in South China.

"Preliminary statistics show that from January to July this year, the B24 filling volume exceeded 8000 tons. Last year, this figure was only 4650 tons." Shi Lishan, vice president of China Industrial Development Promotion Association and former deputy director of the New Energy and Renewable Energy Department of the National Energy Administration, said that this year's biofuel filling has made very rapid breakthroughs in Guangzhou and Shenzhen, and the filling volume will probably exceed Ten thousand tons or even twenty thousand tons.

"Among the top ten ports in the world, my country accounts for six. With the continuous advancement of the 'double carbon' goal, with such a large size, shipowners have a strong demand for emission reduction using domestic green fuels." Liu Hongrong, executive deputy secretary-general of the Biomass Energy Industry Branch of China Industrial Development Promotion Association and president of the Beijing Songshan Low-Carbon Technology Research Institute, pointed out that overall, in the future, whether it is on water, aviation or land, there will be very good application scenarios. Demand will definitely show a rapid growth trend."

Build a green certification system for biodiesel and reflect the green value of biodiesel

However, at present, the development of biodiesel in China still faces many challenges. Our reporter pointed out in the biodiesel industry observation series report "The development of biodiesel in China needs to open up internal circulation" that the lack of economy of biodiesel, the lack of national standards, and the need to improve tax policies are all problems in the development process of biodiesel. The problem to be solved urgently. When using biodiesel on transport ships, imperfect customs tariff numbers and customs codes are also problems encountered in the promotion and application of biodiesel.

In addition to the above issues that require the attention of relevant departments, the industry also hopes to promote the domestic use of certificates to reflect the green value of biodiesel.

"Nowadays, calculating the carbon footprint of products is becoming more and more important. How to calculate and measure the carbon footprint of biodiesel and enhance the core competitiveness of biodiesel is very important." Liu Hongrong said,"At present, the biodiesel emission reduction methodology has been applied to the Energy Bureau and the Ministry of Ecology and Environment to cooperate with the pilot development. We are also doing the traceability of biodiesel and the certification of carbon footprint and green certification."

It is understood that the Biomass Energy Industry Branch has currently compiled the "Technical Specifications for Biodiesel Certification"(hereinafter referred to as the "Specifications"). The "Specifications" add the construction of a green certification system for biodiesel through standards, hoping to reflect the green value of biodiesel through transactions. The form of certificate, on the one hand, neutralizes the high production cost of biodiesel, and on the other hand, facilitates better participation in international market competition in the future.

Liu Hongrong said: "The Code relies on the zero-carbon energy certificate voluntary certification platform (the zero-carbon energy certificate voluntary certification platform established by the Biomass Energy Industry Branch and China Energy Research Association has currently included biomass thermal energy and bio-natural gas, and biodiesel will also be included), adopting the Internet of Things + Internet approach, based on the original measurement equipment of the project, equip a data collection gateway for data collection, and then conduct traceability, trading, and carbon footprint calculation on the entire supply chain. We also hope that the zero-carbon energy certificate can be connected with CCER or visiting officers to promote the emergence of biodiesel's green value in the country."

According to reports, in the future, zero-carbon energy certificates can prove that market entities produce or consume green energy. On the one hand, they can meet the needs of enterprises to use biodiesel emission reduction certification. On the other hand, the certificates also provide corresponding information on biodiesel, including source traceability and Carbon footprint tracking functions, etc.