Shipping Industry Prepares for a Future Powered by Sustainable Fuels
by Isabelle Gerretsen (China Dialogue/Transport Energy Strategies) Experts say the shipping industry will have to decarbonise rapidly to keep global average temperature increases below the critical threshold of 1.5C, and find alternative green fuels to the polluting diesel that currently powers most vessels.
To keep 1.5C alive, global emissions will need to peak by 2025, halve by 2030 and reach net zero by 2050, according to the UN’s climate science body, the Intergovernmental Panel on Climate Change (IPCC).
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Despite the footprint, the International Maritime Organization (IMO), the UN body responsible for shipping, has failed to introduce regulations to curb maritime emissions and drive sustainable innovation within the sector.
Moves forward are steadily arriving, however, from the sector itself and some governments, in the development of sustainable fuels and initiatives to drive uptake. But, as methanol, ammonia and hydrogen are being looked to as some of the leading options, concerns remain over how ready these alternatives are for wide-scale deployment, their own possible impacts, and potential trade-offs in realising a transition.
EU moves to decarbonise shipping
The European Union is taking matters into its own hands with several new regulations aiming to clean up shipping in the next few years. These include a sustainable fuel mandate within the EU, which sets quantitative targets for carbon-intensity reductions over five-year periods, and the inclusion of maritime emissions in the bloc’s emissions trading scheme (ETS). From the start of 2023, shipping will fall under the EU ETS, and all ships transporting goods to and from the EU – regardless of the flag they fly – will be taxed on their emissions.
The FuelEU Maritime initiative aims to increase the uptake of low-carbon and renewable fuels in shipping.
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Future-proofing needs time, brings trade-offs
Compagnie Maritime Belge (CMB) is backing hydrogen as shipping’s future fuel. The Antwerp-based group has three hydrogen-powered ships on the water today, including the world’s first hydrogen-powered tugboat. It is also building 28 large vessels that can operate on ammonia for Chinese companies.
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Maersk, the world’s second largest container shipping company, is betting on methanol to help it reach its 2040 net-zero target
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Ammonia, a compound of nitrogen and hydrogen that emits no CO2 when burned, is the best option for container ships transporting cargo over long distances, (CMB CEO Alexander) Saverys explained, adding that it is possible to store more ammonia on vessels than hydrogen.
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Some companies see “green methanol”, produced using renewable energy, as a better option in the short term.
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Meanwhile, Swiss engine manufacturer WinGD has said its engines will be able to run on methanol and ammonia by 2024 and 2025, pursuing “multi-fuel solutions” that will allow flexibility with current diesel fuels as they work towards a full transition.
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Methanol doesn’t present the pollution issues that ammonia has and is far less toxic to handle, Lazarro (Andrea Lazarro, head of business development at WinGD) said. The fuel is readily biodegradable in water, breaking down within seven days in the case of a spill.
However, many experts say green methanol is not the right fuel to decarbonise the shipping industry, as production is energy intensive and requires carbon dioxide.
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“The renewable electricity that you need to produce these fuels is staggering and it simply doesn’t exist currently,” said Lazarro. “The timeline for ramping up production is measured in decades.”
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China, the world’s largest shipbuilder and the country with the largest shipping fleet, has started building methanol-powered tankers and recently began the first sea trials.
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Massive investment needed READ MORE