Vitol – Navigating sustainable seas

Shipping is expected to produce up to 13 per cent of global greenhouse gas emissions in the next few decades if no actions are taken today. Considering its role in global trade logistics, innovative solutions are needed to help the industry decarbonise.

As a global maritime hub and one of the world’s largest bunkering ports, Singapore is playing a key role in maritime decarbonisation. The Maritime and Port Authority of Singapore (MPA) has set out an ambitious blueprint to decarbonise Singapore's maritime sector by 2050.

In line with MPA’s drive towards sustainable shipping, V-Bunkers – a local bunker operations company that is a subsidiary of Swiss-based energy company Vitol Group – has launched Singapore’s first two electric-hybrid bunker tankers.

The electric-hybrid bunker tankers feature state-of-the-art energy storage system (ESS) technology, which comprises advanced lithium-ion batteries and a highly automated power management system – an energy efficient alternative to conventional generator-equipped engines.

Vitol Group has a partnership with UOB stretching back over 30 years. Beyond traditional trade financing, the Bank also supports Vitol’s diverse financing needs, ranging from regional mergers and acquisitions, to green and transition financing initiatives like these hybrid bunker tankers.

As Vitol sets its sights on sustainable fuels, UOB continues to support Vitol and the maritime industry’s green push.

With comprehensive solutions tailored to clients’ needs, UOB’s “One Bank” approach connects businesses to growth opportunities in the region, and beyond.

About this series

Building Asia is a collection of business stories on CNA that examines the financial forces driving Asia’s position as an economic powerhouse.

Vitol – Navigating sustainable seas was first aired on 5 June 2023 under the Building Asia with UOB series. Watch how UOB supported Vitol in its efforts to decarbonise the shipping industry, with the launch of Singapore’s first two electric-hybrid bunker tankers.

Transcript

Lim Chen Chen (Group Head, Structured Trade & Commodity Finance, UOB):

Marine Charge is Singapore's first electric-hybrid bunker tanker. Congratulations on its delivery.

Capt. Rishab Bahl (Director, Marine Operations, Vitol Asia):

Thank you very much. We are very proud to bring in electric-hybrid bunker tankers, which are the first ones for Singapore.

The electric-hybrid bunker tankers comprise energy storage systems which have lithium-ion batteries fitted, as well as a highly automated power management system. Together, both these systems ensure that these bunker tankers operate in a very energy efficient manner compared to conventional generator fitted engines.

Lim Chen Chen:

In trade finance, one of the most difficult areas to decarbonise is shipping. Shipping is expected to contribute up to 13 per cent of global greenhouse gas emissions. Singapore plays a critical role in leading the greening of shipping. It is crucial for UOB to partner with front-runners like Vitol in decarbonisation.

Capt. Rishab Bahl:

So, UOB has been a key relationship bank for us. Over the years, they have supported us with many business projects.

Lim Chen Chen:

The bank has gone beyond traditional trade financing. We have supported Vitol in regional mergers and acquisitions, as well as identifying other potential areas of business partnership, including the hybrid bunker tankers.

Capt. Rishab Bahl:

In Singapore, Vitol is one of the first trading houses to set up shop here in 1979, 44 years back. Recently, we started supplying bunker fuels under the banner of V-Bunkers. Currently under the V-Bunkers banner, we are operating more than 20 bunker tankers. We are delivering more than 3.5 million tonnes of bunker fuels in Singapore on an annual basis.

Going forward, our focus is going to be on sustainable fuels and we want to achieve IMO’s 2030 targets by the end of 2024.

Lim Chen Chen:

UOB is committed to drive sustainability through our green and transition financing solutions. Being able to easily identify and capture opportunities to support Vitol in your green ambitions also comes from working with the group for more than 30 years. We hope to support Vitol in sustainable logistics, to support your company's ambition. In this way, UOB plays a part in the maritime industry's green push.