Inside KR
KR Decarbonization Magazine
VOL.06 | Spring 2024
KR Verifies HMM’s Greenhouse Gas Reduction Calculation Methodology
KR has awarded a third-party verification certificate for a “Greenhouse Gas Reduction Calculation Methodology” developed by HMM, South Korea’s largest shipping company. The methodology is based on the Renewable Energy Directive Ⅱ, a regulatory framework adopted by the EU to promote the use of renewable energy to all member states.
Last year, the International Maritime Organization (IMO) set a goal of achieving net zero carbon emissions in international shipping by 2050. Discussions on the Life Cycle Assessment (LCA) methodology for marine fuel oil are underway, accelerating the movement towards carbon neutrality.
In response to current regulatory changes, shipping companies are diligently searching for suitable alternative fuels and their efficient application. Biofuel, a blend of biodiesel from used cooking oil and standard marine oil, is gaining traction due to its compliance with IMO regulations without necessitating engine modifications.
The greenhouse gas reduction methodology verified by KR involves calculating the amount of reduced greenhouse gases based on the fuel’s life cycle emissions (WtW, Well-to-Wake), which includes WtT (Well-to-Tank) and TtW (Tank-to-Wake) emissions.
HMM is at the forefront of adopting biofuel, collaborating with GS Caltex and KR. Last year, they marked a significant milestone with the successful biofuel trial on its 6,400 TEU container ship, HMM TACOMA.
HMM uses this verified methodology in their ‘Green Sailing Service’. This service aims to help shippers and stakeholders reduce Scope 3 carbon emissions, by allowing them to report carbon reductions directly resulting from HMM vessels sailing on low-carbon fuels.
SONG Kanghyun, Head & Senior Vice President of KR’s DecarbonizationㆍShip R&D Center, commented on the industry’s challenges in adopting new technologies amidst fierce competition for next-generation alternative fuels. He emphasized KR’s commitment to aiding shipping companies in adhering to greenhouse gas regulations through the proactive development of alternative fuel technologies and the monitoring of international regulations.
New Technical Publications on Decarbonization Have Been Published
The IMO recently decided to significantly strengthen its CO₂ and GHG reduction strategy to achieve a 70% CO₂ reduction and net zero GHG emissions by 2050. Additionally, the EU is implementing a stronger carbon reduction policy than the IMO by establishing the FuelEU Maritime Regulation, which mandates the use of green fuels through the ‘Fit for 55’ package of legislation.
In response to these carbon reduction policies, KR has published three publications that provide technical information on decarbonization.
△ Methanol as a marine fuel
△ Outlook of liquified carbon dioxide carriers
△ Biofuel as marine fuel
The publications cover not only KR’s various R&D achievements on decarbonization but also domestic and international trends on decarbonization and GHG emission reduction, and collaboration within maritime industries.
KR Decarbonization Ship R&D Center plans to regularly provide customers with the latest information on decarbonization and GHG emission reduction.
KR-UPA-Lotte Fine Chemical
-HD Hyundai Heavy Industries-
HMM MOU to Boost the Ammonia Bunkering Industry
On January 9, KR signed a Memorandum of Understanding (MOU) with Lotte Fine Chemical, HD Hyundai Heavy Industries, and HMM to boost the ammonia bunkering industry at the Ulsan Port Authority (UPA) headquarters.
The MOU is expected to further strengthen KR’s role in environmentally friendly marine fuel bunkering, one of the major challenges facing the global shipping industry.
Since the IMO tightened its greenhouse gas regulations in July 2023, ammonia, which does not emit carbon, is gaining traction as the next alternative fuel for ships. Orders for ammonia-powered ships are also on the rise, making advanced preparation for bunkering essential.
While ammonia is considered a hazardous substance, the collaborating parties plan to use this opportunity to improve the system and regulations for its use as a marine fuel. They will cooperate in various areas, including building infrastructure for stable ammonia supply and conducting research and demonstrations to develop new businesses related to ammonia bunkering.
KR Grants DongHwa Entec and
DongHwa Pneutech Approval in Principle
(AIP) for Ammonia Fuel Supply and
Re-liquefaction System
KR awarded DongHwa Entec and DongHwa Pneutech Approval in Principle (AIP) for the Ammonia Fuel Supply and Re-liquefaction System at Marintec China held on 6 December, 2023 in Shanghai, China.
The Ammonia Fuel Supply and Re-liquefaction System is the result of a Hazard and Operability Analysis (HAZOP) of operation and control with APAVE Korea (ABS Consulting) to identify and improve process hazards and operational issues in advance.
Ammonia has the characteristics of being lighter than air, so it can be effectively controlled in case of gas leakage and has a low explosion potential compared to other fuels. However, it is accompanied by problems of toxicity and corrosiveness, so it is essential that the design addresses these issues.
In response, DongHwa Entec completed the overall process design for the fuel supply, reliquefaction, and neutralization system, considering the unique characteristics of ammonia. Specifically, the core equipment for ammonia reliquefaction is a reciprocating compressor from DongHwa Pneutech.
KR will continue to collaborate with companies developing environmentally friendly technologies to contribute to the global goal of carbon neutrality and will provide ongoing support for successful technology development.
Launch of a Company Audit Service for
the Verification of the Ship Energy Efficiency Management Plan
(SEEMP Part-III)
In December 2023, KR established a company audit service to verify the implementation of the Ship Energy Efficiency Management Plan (SEEMP) Part-III. KR visited SK Shipping to conduct a preliminary audit before the actual implementation.
SEEMP Part-III is a requirement for the implementation of the Carbon Intensity (CII) regulation, which has been in effect since 2023. It is a document that describes the procedures and methods for establishing, implementing, monitoring, and evaluating plans to improve the energy efficiency of ships. SEEMP Part-III includes CII information for the past three years, CII calculation methods, implementation plans to achieve the CII allowable value for the next three years, self-assessment, improvement plans, etc.
CII is a regulation that calculates carbon intensity (Attained CII) based on a ship’s actual annual fuel consumption and distance traveled. It assigns a grade from A (high grade) to E (low grade) compared to the required CII allowance (Required) for the ship over the period.
The 2023 classification for individual ships based on their fuel consumption will be derived by March 2024. If a ship’s CII rating is D for three consecutive years or E for a single year, a corrective action plan to achieve the CII allowable value must be developed and included in SEEMP Part-III.
Therefore, shipping companies operating internationally voyaging ships of 5,000 gross tonnes or more should have developed a SEEMP Part-III of their carbon intensity action plan for the three-year period up to and including 2023 before the CII is fully implemented this year. They should have obtained a Confirmation of Compliance (CoC) from a competent authority or verification body last year and need to undergo a company audit every three years.
KR has established the ‘Company Audit Service for SEEMP Part-III Implementation Verification’ to ensure that shipping companies can receive company audits for overall monitoring, including verification of the implementation of these regulations, within the set deadline.
“Based on the experience and feedback we received from the preliminary audit of SEEMP Part-III, we are preparing to provide the service to shipping companies earnestly from this year,” said KIM Kyungbok, Executive Vice President of KR’s Statutory Division. “In addition, we will strive to provide a wide range of services next year, including preparing integrated guidelines through KR GEARs to support the overall response to CII regulations.”
The application process for SEEMP Part-III will be available on the website of KR-GEARs*, Korea’s GHG management system.
KR Publishes Technical Information for
Safe Marine Transport of Electric Vehicles
KR has unveiled technical information to support the safe marine transportation of electric vehicles (EVs). This new guidance provides a practical and realistic understanding of the AFP-C(EV) notation, which has been developed by KR to strengthen safety standards for PCTCs (Pure Car and Truck Carriers)/PCCs (Pure Car Carriers).
The maritime industry is increasingly concerned about the safety of transporting electric vehicles due to the rising number of such vehicles being carried. There have already been instances of fires involving vehicle carriers, and the International Maritime Organization (IMO) and related organizations have underscored the importance of establishing safety regulations for the maritime transportation of electric vehicles. However, the process of developing comprehensive regulations is still in the discussion phase, and practical guidelines are not yet available.
In response to industry demands for safer EV transportation and the need for effective measures in case of EV-related fire incidents, KR has worked in collaboration with shipping companies and shipyards to introduce the AFP-C(EV) notation.
The new information helps to explain the requirements for the AFP-C(EV) notation, which includes the fire detection and fire alarm system, fixed fire-extinguishing system, and fire-fighting equipment.
The technical information can be down-loaded from KR’s Homepage.
