Interview with X-Press Feeders: Greater adoption of hybrid fuel systems, circular economy to spur shipping transition

December 18, 2024, by Fatima Bahtić

The growing urgency of addressing climate change is driving a powerful shift in the global energy landscape, as the demand for a carbon-free and sustainable future intensifies. Amid shifting political and economic currents, the shipping industry is increasingly turning to clean energy fuels to reach the net-zero goal and secure a resilient, climate-conscious future.

Offshore Energy had the pleasure of speaking with Francis Goh, Chief Operating Officer (COO) of X-Press Feeders, about the current challenges that navigate the maritime industry and how the future of the shipping sector will look like as the industry struggles to reach net-zero goals.

Established in 1972, X-Press Feeders is a Singapore-based container feeder operator, providing a comprehensive range of feeder services to international container shipping lines. The company operates a vast fleet of more than 100 vessels, ranging from a nominal capacity of 500 TEUs to 7,000 TEUs.

As part of its commitment to sustainability, X-Press Feeders has placed orders for 14 dual-fuel vessels, set for delivery between Q1 2024 and mid-2026. The operator has also pledged to achieve the target of becoming net zero by 2050.

Over the course of 2024, X-Press Feeders has continued to push the envelope on sustainability and decarbonization in the shipping industry, including the orders for methanol-powered vessels and the launching of the green methanol-powered feeder network. What measurable impact have you seen so far from these initiatives, and how do you plan to scale them in the coming years?

Goh: In 2024, X-Press Feeders has made notable strides in advancing sustainability and decarbonization within the shipping industry. Our green methanol-powered feeder network has achieved significant reductions in CO₂ emissions, by up to 65% per vessel in terms of main engine propulsion. This initiative not only underscores our commitment to reducing environmental impact of shipping but has also strengthened partnerships with customers who prioritize sustainable logistics, establishing a solid foundation for broader adoption of sustainable practices in shipping.

The memorandum of understanding (MoU) we signed with six key European ports—Antwerp Bruges, Tallinn, Helsinki, HaminaKotka, Riga, and Klaipeda—plays a critical role in enabling future scalability. This collaboration supports the development of essential infrastructure for alternative fuels such as green methanol, and the optimization of port operations through digital innovations.

Additionally, we are actively engaging in joint training initiatives and stakeholder dialogues to equip teams with the knowledge and skills needed to handle alternative fuels safely and efficiently. This collaborative approach lays the groundwork for replicating this model in other regions, further expanding our green methanol-powered network.

Looking ahead, we are poised to scale these efforts globally, leveraging the learnings and infrastructure established through our European partnerships. This positions us to accelerate the transition to low-carbon shipping solutions and supports our broader goal of achieving net-zero carbon emissions by 2050.

Beyond green methanol, what other sustainable marine fuels and technologies are you exploring to further reduce emissions in shipping? Have you considered to explore wind propulsion which is becoming popular within the industry?

Goh: Beyond green methanol, we are constantly exploring a range of alternative fuels and innovative technologies to further reduce emissions in shipping.

Currently, green methanol is our fuel of choice, particularly for feeder vessels, due to its practical advantages. Its storage capacity and energy density make it an ideal solution for the size constraints of feeder vessels. Green methanol tanks take up significantly less space than ammonia or hydrogen tanks, preserving valuable cargo capacity of feeder vessels. This is essential for maintaining operational efficiency on short-sea shipping routes, where space is at a premium.

Beyond alternative fuels, we have adopted a multi-faceted approach to improving efficiency and reducing emissions across our existing fleet. X-Press Feeders utilizes satellite communication and data analytics to monitor a wide range of parameters from our vessels, including fuel consumption, wind conditions, power usage, vessel speed, and more.

This real-time data allows us to optimize routes, minimize fuel consumption, and reduce emissions. This data-driven approach also guides decisions on ship modifications and operational improvements. Targeted enhancements like wind deflectors and the application of anti-fouling paint help reduce friction and improve fuel efficiency incrementally year on year.

One of the critical issues discussed at COP29 is how to accelerate the use of alternative fuels to reduce shipping emissions. Can you provide more details about your green methanol projects, including sourcing of involved green methanol for vessels?

Goh: We source our green methanol from OCI Global, a leading producer of methanol globally. We ensure that the green methanol we procure meets stringent standards, including those set by the International Methanol Producers & Consumers Association (IMPCA), engine manufacturer’s fuel specifications, and the International Sustainability and Carbon Certification (ISCC) EU regulations.

By adhering to these high standards, we not only ensure high-quality fuel for our vessels but also compliance with international sustainability certifications, aligning with our goal to reduce emissions through the use of alternative fuels. With a reliable supply of green methanol, we can effectively support the decarbonization of our operations and contribute to global efforts to mitigate shipping emissions.

How do you see the discussions at COP29 influencing shipping regulations and policies, particularly in terms of decarbonization and environmental responsibility?

Goh: The discussions at COP29 are central in shaping the future of global shipping regulations and policies, especially regarding decarbonization and environmental responsibility.

At X-Press Feeders, we see the outcomes of COP29 reinforcing the urgency for industry-wide adoption of alternative fuels, such as green methanol, which we have embraced as a scalable and practical solution. We expect that the emphasis on collaboration and innovation showcased at the event will accelerate the establishment of frameworks that support multi-fuel readiness, infrastructure development, and incentives for early adopters.

These discussions also highlight the importance of measurable and enforceable policies to ensure accountability. For us, this aligns with our ongoing investments in methanol-ready vessels and our proactive role in pioneering solutions like simultaneous methanol bunkering and cargo operations. Such efforts not only prepare us for regulatory shifts but also position us to contribute meaningfully to a lower-carbon future.

How do you think the industry can balance the need for decarbonization with the economic realities of global shipping and current global challenges? What role do you see for regulatory bodies in guiding this transition?

Goh: Balancing decarbonization with the economic realities of global shipping requires a strategic, phased approach that considers both technological advancements and market dynamics. The industry must focus on scalable and cost-effective solutions, such as alternative fuels and energy-efficient technologies. Collaboration across the value chain—from fuel providers to logistics partners—is essential to distribute costs fairly and foster innovation that benefits all stakeholders.

At X-Press Feeders, we support the introduction of a global carbon levy as a practical mechanism to reduce the cost disparity between fossil fuels and green alternative fuels. Regulatory bodies play a crucial role in ensuring the fair and effective adoption of alternative fuels, while an appropriately structured carbon levy help to bridge the price gap, creating a level playing field for all stakeholders.

Additionally, regulations should encourage collaboration and innovation while maintaining the economic viability of global trade, recognizing the essential role shipping plays in connecting markets and supporting economies worldwide. Fair and effective regulations are key to driving innovation and decarbonization while maintaining the economic viability of global trade.

Have you seen any (negative) impacts of geopolitical tensions on your operations, e.g. longer sailing routes or changes in supply chain dynamics?

Goh: Geopolitical tensions can pose challenges to shipping operations, but we are committed to staying agile and adapting swiftly to minimize any impact. When necessary, we adjust our sailing routes, call at alternative ports, or implement other strategic measures to ensure continuity of service. Flexibility and proactive planning are at the core of our approach, enabling us to respond effectively to changes in supply chain dynamics or disruptions in sailing routes.

By closely monitoring global developments and staying in close communication with our stakeholders, we can navigate external challenges with minimal disruption. Our focus remains on maintaining reliable operations and meeting the evolving needs of our customers, no matter the geopolitical landscape.

How do you see the maritime sector’s progress in adopting green technologies? In your opinion, what else needs to be done at the policy or regulatory level to accelerate this transition?

Goh: The maritime sector has made strides in adopting green technologies but there is still significant progress to be made to meet decarbonization goals. The pace of adoption varies widely across the industry, hindered by challenges such as high upfront costs, limited infrastructure, and regulatory uncertainty. To accelerate this transition, several steps need to be taken at the policy and regulatory level.

Firstly, global regulations that set clear and enforceable standards on alternative fuels and emissions are essential to drive industry-wide adoption. Secondly, financial mechanisms such as subsidies, tax breaks, and green financing should be broadened to make retrofitting and development of new eco-friendly vessels more economically viable for operators of all sizes. Thirdly, policymakers need to prioritize investment in infrastructure, particularly for alternative fuel production and bunkering facilities.

Lastly, international cooperation is essential to harmonize standards and regulations across regions, ensuring a level playing field and reducing operational complexity for shipping companies. A unified approach involving regulatory bodies, governments, and industry stakeholders is key to fostering innovation and driving the adoption of green technologies across the maritime sector.

Are there any plans to create more green shipping corridor initiatives in the future? How do you envision these initiatives evolving, and what role will they play in reducing carbon emissions?

Goh: At this stage, we are focused on optimizing our recently launched Green Finland X-PRESS (GFX) and Green Baltic X-PRESS (GBX) services, but we are optimistic about the future potential for expanding our green methanol-powered feeder network. The positive results we’ve seen from these initiatives demonstrate their value in reducing carbon emissions, and we are eager to build on this momentum.

Future expansion will be influenced by several factors, including advancements in port infrastructure across Europe to support alternative fuels like green methanol and increasing customer demand for sustainable shipping solutions. Our commitment remains to support our clients to lower their CO₂ emissions while contributing to the broader decarbonization of the shipping industry.

As our green methanol-powered feeder network evolves, we anticipate it will play a central role in reducing emissions, offering a sustainable and scalable model for future initiatives. By expanding this network, we can help pave the way for more widespread adoption of alternative fuels and cleaner technologies across the maritime sector.

X-Press Feeders is also using data analytics and digital tools to enhance operational efficiency. How do these technologies can help improve fuel efficiency and reduce emissions, and how do they complement your green methanol program?

Goh: At X-Press Feeders, we utilize advanced data analytics and digital tools to monitor over 250 data points across a single vessel, including fuel consumption, wind conditions, vessel speed, and power usage. This wealth of real-time information enables us to optimize operations by refining routes, reducing idling times, and minimizing fuel consumption, all of which contribute to significant emissions reductions.

These digital tools complement our green methanol program by ensuring that we maximize the efficiency of vessels running on alternative fuels. Through continuous data analysis, we can identify areas for improvement, implement modifications such as hull upgrades or energy-saving devices, and enhance overall performance. This integrated approach strengthens our commitment to reducing our carbon footprint while delivering sustainable and efficient shipping solutions to our customers.

Looking ahead to 2025 and beyond, what trends do you foresee emerging in the maritime industry in terms of sustainability, innovation, and energy transition?

Goh: Looking forward, we anticipate a greater adoption of hybrid fuel systems, allowing vessels to seamlessly switch between multiple sustainable fuel sources depending on availability and operational needs. This flexibility will be crucial in optimizing fuel usage and minimizing emissions. Additionally, we also expect increased investment in digital technologies that enhance logistics and fleet management, reducing emissions across the industry.

Another key trend will be the shift towards circular economies, where the maritime sector plays an integral role in supporting sustainable material flows. This transition will spur new innovations, not just in fuel and technology, but also in how the industry approaches resource efficiency, waste reduction, and long-term sustainability. The combined impact of these trends will propel the maritime sector toward a greener, more innovative future.