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Spot on, let’s hope the Govt are listening:-
“To do this we need the UK Government to establish a CCUS investment framework and ensure projects like ours can link into a CO2 transport and storage infrastructure network in the region.”
https://www.velocys.com/2020/02/04/velocys-ceo-comments-on-sustainable-aviations-new-fuels-roadmap/
Understanding the behaviour of the new VLSFOs entering the market is proving to be a ‘steep learning curve,’ said Saral and he also noted that scrubber equipped tonnage continues to grow at pace. The number of scrubber-equipped ships is expected to climb from 1,800 in 2018 to 3,800 in 2020, and Saral reminded delegates that some ‘40% of scrubbers orders are pending retrofit or waiting to go into the fleet.’ Demand for HSFO is expected to double between January-December 2020 and the market can expect to see a significant bunker premium on this product.
The shipping and bunker markets can expect to take some comfort from marine fuel prices, as the severe volatility seen at the start of 2020 calms down. However, Saral cautioned, market stability in pricing may not really play out until mid-year.
https://www.bunkerspot.com/global/49817-global-imo-2020-transition-akin-to-crossing-the-rubicon
https://www.collinsdictionary.com/dictionary/english/to-cross-the-rubicon
“The UK is well positioned to become one of the leaders in the green technologies of the future, including sustainable aviation fuels and electric flight, creating highly-skilled and well-paid jobs in the process, and we look forward to working in partnership with Ministers to help realise these opportunities.”
Rt. Hon Grant Shapps MP, Secretary of State for Transport, said:
“The fight against climate change is one of the greatest challenges facing the modern world, but the aviation sector’s commitment today is a huge step forward in creating a greener future.
“Aviation has a crucial role to play in reducing carbon emissions, and with the help of new technologies, renewable fuels and our continued international co-operation through the UN agency, the International Civil Aviation Organisation, we’ll be able to strike that balance, creating a greener and cleaner future.”
https://centreforaviation.com/analysis/reports/aviation-sustainability-and-the-environment-capa-05-feb-2020-512335
The recent long spur research study valued VLS @, “we value the shares at 21p. More active compliance within the constraints of feedstock resources would give us a valuation of 36p and active expansion of these resources could take us to 50p."
https://www.lse.co.uk/rns/VLS/longspur-research-initiates-coverage-on-velocys-5g16elkjgjuuzpc.html
You could be right Gillingham, Whether we have the right team or not, time will tell.
What I do know is what Quadrise said nearly 3 years ago now that they believed scrubbers & High sulphur HFO use would be part of IMO compliance has proved to be correct albeit so far in a smaller footprint.
Just a reminder of the significance of these scrubber U-Turns:-
“ QFI continues to believe that the industry will ultimately move to the use of Scrubbers and high sulphur fuel as the most economic compliance option and that Marine MSAR® will enable operators to obtain additional economic and environmental advantages over the use of heavy fuel oil.”
https://www.lse.co.uk/rns/QFI/maersk-notification-hi67wrx5cxoim71.html
"Former critic of exhaust gas cleaning systems, very large crude carrier (VLCC) Euronav is making a U-turn on its previous position by escalating efforts to retrofit a section of its fleet with scrubbers."
https://dredgingandports.com/news/2020/new-converts-to-scrubbers-due-to-vlsfo-market/
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Similar to the Maersk U-Turn.
https://www.theguardian.com/business/2020/feb/04/uk-air-industry-sets-zero-carbon-target-despite-70-more-flights
"The coalition forecasts that sustainable jet fuels, which are yet to be employed commercially, could meet almost a third of UK’s aviation fuel demand by 2050."
First Class appointment!
Do we know if Velocycs is part of this consortium? We know they are being paid for technical input but I wondered if the operational development is shared with VLS other than the supply agreements.
"The demonstration facility will have 0.7 ton/day of woody biomass processing and about 20 liter/day of neat biojet fuel production capacity, and various tests and studies will be conducted through the verification operation of the facility. Based on the results of verification and tests, the consortium will also optimize future commercial scale system to develop biojet fuel production technology with high on-stream rate, high efficiency, and low capital cost.
Furthermore, in order to study the process to apply produced neat biojet fuel for practical use in aviation industry, TOYO is participating in “neat biojet fuel practical application working group (tentative name)” under the support of NEDO and will examine its commercial application more practically."
https://www.toyo-eng.com/jp/en/company/news/?n=483
Good point fyoz, but their is a cunning plan I think with Bitumina. I think they could manufacture to order outside of the confinement of a refinery operation, not 100% certain but QRF produce fuel in small quantities, I see Bitumina as QRF on steroids.
Oh EB, that’s so touching, your so worried about my taxes funding government science projects, why don’t you then trade in your hi vis vest at the local recycling depot and put your efforts into becoming an MP or at least double up on the Prozac and give us a rest from your earache. Protecting tax payers.......really. Best filtered.
Given that freight rates are unlikely to surge, liners will likely sign more long-term charters to protect against ship-lease inflation and install more scrubbers to reduce fuel costs.
Clarksons estimates that 56% of container ships in the 15,000-TEU-plus segment are scheduled to have scrubbers installed – it is the single most scrubber-focused segment in all of shipping (excluding passenger vessels). Clarksons estimates that 47% of container vessels in the 12,000- to 14,999-TEU category are set for scrubber installations.
Zikos is in an ideal position to gauge liner sentiment toward additional installations beyond previously agreed contracts. His company installs such units at the request of charterers. It already has five scrubber-fitted ships on charter to Maersk, five on charter to MSC and five newbuildings with 10-year charters to Yang Ming scheduled for installations.
"We are in discussions with liners regarding the installation of scrubbers as part of a package together with a charter agreement," said Zikos on the analyst call, confirming, "There is a lot of interest from the liner companies regarding new scrubber installations today." He maintained that it's still possible to get a scrubber ordered and installed by the end of 2020.
https://www.benzinga.com/government/20/01/15212110/container-lines-face-intensifying-cost-squeeze
Who's to say they i.e Bergen (perhaps peel hunt also) didn't sell already into the predictable rising market following the so called death spiral funding (credence to Tim nice but Dim) open offer in September 19. In October the S.P hit almost 6p, surely that was adequate profit along with the share allocation arrangement fee would be a tidy profit for them, anyway, the Company is presently funded following the capital raise to give them the requested runway to deliver a portfolio of opportunities some of which we expect will lead to a successful outcome. GLA.
"Dr Liu highlighted that, in addition to the continuous technological innovations now being realised for airframes and aircraft propulsion technologies, new sustainable fuel alternatives hold the potential to reduce jet fuel life-cycle CO2 emissions by up to 80%. In this regard, she called for greater private-public coordination on advancing sustainable aviation fuel development and deployment."
https://centreforaviation.com/analysis/reports/aviation-sustainability-and-the-environment-capa-29-jan-2020-511252
"Following the introduction of the IMO 2020 sulphur cap regulations, brokers have already established a two-tier market for scrubber-fitted containerships. The consultant said the substantial daily hire rate differential was “setting scrubber-fitted vessels apart”."
https://theloadstar.com/investment-in-scrubbers-starting-to-pay-off-as-carriers-are-offered-double-rates/
“Now that we have entered into January 2020, we see a new upsurge in interest for scrubbers as many shipowners have tried and tested the products, have compared producers and scrubbers versus VLSFO and see the benefits of installing a scrubber on their fleet. Moreover, we believe the current cost savings that scrubber-fitted vessels benefit from compared to vessels running on VLSFO will act as a catalyst for shipowners wanting to install scrubbers.”
https://www.rivieramm.com/news-content-hub/box-ship-scrubbers-lsquopreparing-for-the-big-boomrsquo-57641
"Scrubbers received another boost in January albeit from an unexpected source. With the IMO’s PPR 7 meeting in February due to discuss further the impact of Black carbon on the Arctic environment, Finland and Germany would look to have dropped something of a bombshell with a joint paper describing research undertaken with funding from the German Environment authorities that suggests VLSFO developed to meet the IMO’s 2020 sulphur rules actually produce more of the stuff than conventional HFO.
It would be ironic if the next requirement for ships is for some method of reducing these emissions that could involve installation of a scrubber or a Diesel Particulate Filter (DPF) another technology considered in the mentioned report. The DPF is described as an immature technology and one that is not without problems an increase in fuel consumption and a large footprint are mentioned. Reference was made to a trial carried out by MOL on DPF where the space requirement was two to three times engine volume."
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Isn't it also Ironic that a fuel technology switch solution is immediately available that can also provide a "some method of reducing these emissions".
https://shipinsight.com/articles/a-boost-for-scrubbers-from-black-carbon-research
“Shell thinks aviation fuel will be one of the critical growth areas to explore, as ground vehicle transportation fuel and other segments are expected to decline over time. One of these expected growth segments will be sustainable aviation fuel (SAF)”
https://oilprice.com/Alternative-Energy/Biofuels/Shell-Aims-For-Dominance-In-325-Billion-Aviation-Fuel-Market.html