Innovation and Action for a Net-Zero Future
Singapore Maritime Week 2025 is shining a spotlight on the maritime industry’s decarbonisation agenda. Global shipping is responsible for nearly 3% of the world’s greenhouse gas emissions, and this means that the maritime industry has a vital role to play in global efforts to decarbonise and support a swift and fair energy transition.
While progress is being made, it is vital that we move even faster if the industry is to fulfil its net zero promises. As the UN Secretary General António Guterres said, we need to do everything, everywhere, all at once.
Fleet Management is supporting the industry’s decarbonisation agenda in two crucial ways. We are applying our expertise and practical know-how to realise the potential of emerging technologies by bringing them out of the confines of research centres to operating vessels. And as the industry transforms, one thing remains constant—we will always need skilled maritime professionals to keep global trade moving. This is why we are investing in talent and training to build and operate the fleets of the future, safely.
Embedding Sustainability Across Our Operations
Fleet Management launched its sustainability strategy in 2022. It consists of four distinct pillars – Navigating Responsibly; Evolving Environmental Stewardship; Safeguarding People; and Working Together – with goals and targets aligned to the UN Sustainable Development Goals within each pillar.
A significant area of focus has been to help shipowners comply with the European Union’s Emissions Trading Scheme (EU – ETS) AND FuelEU Maritime regulation. The key element of the programme was to provide clients with support through Fleet’s bespoke PARIS platform for monitoring, reporting and verifying greenhouse gas (GHG) emissions and allowing customers access to enhanced data for better and quicker decision making when it comes to GHG reductions.
We are working towards net zero operations on our vessels under management or Newbuilding supervision, while helping shipowners work towards the same goal. The installation of energy saving devices, the use of voyage optimisation practices and good maintenance systems such as regular hull cleaning meant that GHG emissions fell by nearly 5% compared to 2022.
In addition, the company has put in place initiatives to support UN SDG 14 (life below water). From reducing waste to removing excess packaging from items consumed on board ships, and installing reverse-osmosis purification units on all owned ships.
Forging the Path Forward for Sustainable Fuels
Fleet Management already manages a growing number of vessels powered by alternative fuels such as methanol, LNG, and LPG. The fleet has expanded significantly in recent years, reinforcing the company’s commitment to sustainable shipping solutions.
We currently operate 28 dual-fuel vessels under technical management spanning LNG (23), Methanol (2) and LPG (3). This in addition to 33 vessels under Newbuilding supervision which will expand fleets in future years, as well as Fleet Management’s active participation in biofuel trials with promising findings. We are supporting many different fuels and technologies as the industry explores the long-term viability of each.
Ammonia standing out as a promising solution, and Fleet Management has been a partner in a study exploring ammonia as a fuel and the training standards for crews operating these vessels since 2021. The growth of methanol-powered shipping is also showing encouraging signs, and we are actively managing dual-fuel vessels powered by methanol already.
Changing fuel requires significant investments in fuel production, infrastructure and supply chains, retrofitting of ship engines and storage and bunkering facilities, modification of fuel tanks and fuel delivery systems, retraining of crew and terminal staff, adjustments to contracts, and reassessment and recertification of equipment and processes. An enterprise-wide and industry-wide effort will be required to bring this to fruition before the end of this decade.
Advancing Ammonia Bunkering
Singapore has become a hub and leader in global efforts to scale ammonia bunkering solutions. In 2024, Singapore became the first port in the world to run a trial of ammonia as a marine fuel but there are other trials – and plans for trials – in Australia and Oman.
Ammonia bunkering must surmount two critical issues. Firstly, we must find scalable, technological solutions. Addressing this, the industry is making great strides through consortiums and partnerships such as Singapore Ammonia Bunkering Feasibility Study (SABRE).
One of the primary challenges in adopting ammonia as a marine fuel is its toxicity. Ammonia is a pungent, highly alkaline substance that can be harmful to humans and marine life, according to the United States Occupational Safety and Health Administration (OSHA). Even at low levels, exposure can cause irritation, while higher concentrations may lead to severe health effects. Secondly, it needs to demonstrate that it can be delivered safely, dispelling fears about its toxic properties when it is properly managed.
Even at low levels, exposure can cause irritation, while higher concentrations may lead to severe health effects. Secondly, it needs to demonstrate that it can be delivered safely, dispelling fears about its toxic properties when it is properly managed.
Ammonia can be safely integrated as a fuel with the right precautions. The industry has decades of experience handling ammonia as cargo, with Fleet Management operating ammonia carriers since 2009 and building several ammonia tankers over the past 15 years. This experience is invaluable in planning for safe operations and training crews.
To mitigate risks, safety protocols and training are already in advanced development:
- Engineering Controls - Ammonia fuel systems will incorporate double walled piping, leak detection systems, emergency shutdown mechanisms, and well-ventilated storage areas.
- Operational Safety Measures - Bunkering procedures will include strict exclusion zones, automated leak containment systems, and comprehensive safety drills.
- Regulatory Frameworks - The IMO has initiated work on integrating ammonia into the International Code of Safety for Ships Using Gases or Other Low flashpoint Fuels (IGF Code), with interim guidance expected in 2024-2025.
- Emergency Response Preparedness - Crews will be equipped with advanced personal protective equipment (PPE), such as gas tight suits and full-face respirators, ensuring rapid and safe responses to any ammonia leaks.
With these measures, the industry is taking a proactive approach to ensure that ammonia can be used safely as a marine fuel.
Methanol in the Mix
Methanol is also gaining traction as an alternative marine fuel. One of its key advantages is its ease of handling; unlike ammonia, methanol does not require cryogenic containment systems, making it more straightforward to integrate into existing infrastructure.
However, methanol faces its own set of challenges, particularly in terms of cost. The production of green methanol is currently more than twice as expensive as green ammonia, presenting a significant economic hurdle. To address this, intensive research is underway to drive down production costs and make methanol a more commercially viable option.
Fleet Management has been a pioneer in methanol powered shipping, operating methanol tankers since 2010. As one of the first companies to operate methanol dual-fuel vessels, Fleet Management has accumulated over 10 years of experience in this area and has also established a highly trained crew pool to support the transition to methanol powered shipping.
Investing in Human Capital Now
Maritime professionals are the crucial ingredient to realise these technologies and advance the transition. The industry will need manifold increases in the number of highly trained seafarers and shore support to operate alternative fuel vessels safely. In Singapore, we are supporting local authorities as they prepare the IGF code and specialised training.
Fleet Management is already rolling out crew training, exceeding our target of 1,500 seafarers trained on dual-fuel vessels by the end of 2024 and more in progress. We offer practical training to crews by sending them onboard to learn various operations, including bunkering operations, as well as simulator-based training in WinGD & MAN dual-fuel engines. We are partnering with engine makers, as well as working with industry partners to impart knowledge and stay ahead of the latest developments in alternative fuels. Demand is only set to grow as the technologies develop, and the industry must prepare now.
Capturing the Future
As technological advancements continue to shape the industry, data driven solutions will play an increasingly important role in optimising fuel efficiency and reducing emissions. The integration of ship data with tide and weather information will enable captains to make real-time decisions that enhance route efficiency, leading to fuel savings and a lower carbon footprint.
For more information on Fleet Management’s sustainability initiatives, explore the Encompass Sustainability Strategy: https://www.fleetship.com/sustainability.
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