High logistics cost of green fuels needs industry attention - Bunker Holding

Logistical costs of delivering green fuels across the globe are about 3-4 times higher than for traditional fuels, Bunker Holding’s chief operating officer Christoffer Berg Lassen wrote in a report published this week.

PHOTO: Bunkering of a bulk carrier. Getty Images

Berg Lassen said cross-industry engagement is needed to resolve this challenge. He thinks that shipowners will seek long-term bunker purchase contracts of 2-3 years for green fuels to ensure reliable supply.

The Bunker Holding report argued that most green fuels are at the development stage, and that it is unclear which fuels will drive shipping's energy transition. Today's demand for green fuels mostly comes from pilot projects and these fuels are only available from a limited number of locations around the world, it said.

Bunker Holding intends to become a partner in at least 10 green fuel projects by the end of next year, including methanol, ammonia and biofuels.

By Nithin Chandran

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