Nicolas Brabeck, Managing Director of MAN Energy Solutions Singapore, stated that as the global shipping industry accelerates decarbonization, it is expected that the order volume for dual fuel engines will sharply increase, with approximately 85% of all ship engines ordered by 2030 using dual fuel.
Brabeck stated in an interview with S&P Global Commodity Insights that only 35% of dual fuel engines were ordered in 2021, and only 56% were ordered in 2022.
"All of our engines that can use alternative fuels are dual fuel engines. Our engines can use methane, ethane, liquefied petroleum gas (LPG), methanol, and soon ammonia," Brabeck said.
Brabeck added, "The shipping industry is a decentralized industry, and all types of fuels have their advantages and disadvantages, depending on the type and size of the vessel, the participants, etc." He hinted that the shipping industry will use multiple fuels in the future, as compliance with various environmental regulations, including the European Emissions Trading System (ETS), will inevitably promote the application of green fuels.
In a recent report, S&P Global analysts stated that due to the lack of sufficient fuel supply and actual engines for ammonia and hydrogen dual fuel ships being built by shipyards, LNG, biofuels, and methanol are the main candidate fuels to fill the gap until new fuels are tested and more widely available.
According to the reference case of S&P Global, the overall demand for marine fuel in 2030 may be 328 million metric tons, with LNG accounting for 7.8% of the total demand and all alternative fuels except LNG and LPG accounting for 2.2%.
MAN has been developing a flexible two-stroke ammonia engine as a key technology for offshore energy transformation. According to its website, the company's goal is to put two-stroke ammonia engines into commercial use as early as this year, and then launch a modification plan for gradually retrofitting existing maritime vessels before 2025.
At the same time, MAN Energy signed a methanol modification agreement with China Shipping in December 2023.
Brabeck stated that so far, global shipowners and operators have ordered over 180 MAN methanol engines. He added that at the same time, the total number of methanol powered ships equipped with the company's ME-LGIM engines ordered in China is about 105, reflecting the increasing popularity of methanol as a marine fuel.
Mann Energy recently announced the signing of a methanol dual fuel engine cooperation agreement with China Classification Society.
"MAN B&W ME-LGIA adopts the same dual wall concept as our existing LGI based dual fuel engines. This means that leaks can be controlled without directly leaking into the cabin," Brabeck said.
He admitted that the company is not considering investing in green methanol companies or producers, but will provide key components for the electricity to methanol facility.
When it comes to using LNG as a fuel for ships, Brabeck pointed out that LNG is both a transitional fuel and a fuel that is undergoing transformation. "LNG is a fossil variant of methane with limited potential in achieving IMO emission reduction targets. However, engines fueled with LNG can also use biomethane or synthetic natural gas," Brabeck said.
Brabeck also stated that the MAN B&W ME-GI two-stroke dual fuel engine is one of the most efficient engine types on the market, and due to its negligible methane escape, it provides a future solution for LNG powered ships. He added that the emissions of this engine are several times lower than other Otto cycle engines.
At the same time, Brabeck remains convinced that despite the volatility of the natural gas market, demand for LNG engines will remain strong.
Brabeck pointed out, "Fuel prices are influenced by cycles, but engine ordering is not affected by short-term LNG prices."
Singapore, as the world's largest refueling port, has been committed to promoting sustainable shipping development.
On March 1st, MAN unveiled its multi-purpose facility in Singapore, which is also the company's largest service center outside of Europe.
Brabeck said, "The launch of the new comprehensive facility under the Mann Energy Plan will expand local business activities."
This facility provides maintenance and repair services for its alternative fuel two-stroke engine users, as well as faster provision of spare parts, reducing ship turnover time.
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