Shipping's future expected to be multi-fuel - industry survey

Nearly half of shipping companies plan to achieve net-zero greenhouse gas emissions by 2050 through "fuel-diverse" operations, according to a survey conducted by leading industry non-profits.

PHOTO: Danish shipping major A.P. Moller-Maersk launched its 2,100 TEU dual-fuel methanol feeder vessel last week. A.P. Moller-Maersk

The survey was jointly conducted by the Global Maritime Forum (GMF), the Global Centre for Maritime Decarbonisation (GCMD) and the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping (MMMZCS).

The survey found that 45% of shipping companies wanted to power their fleets with a variety of alternative fuels, such as biofuels, bio-liquefied natural gas (bioLNG), bio-methane, methanol and ammonia, rather than relying on just one.

MMMZCS's chief executive Bo Cerup-Simonsen said that “the industry will need to think strategically about how to operate multi-fuel fleets and green fuels must be introduced in a safe and cost-efficient manner to make them the preferred alternative to current petroleum products.”

The survey's respondents believe that uptake of cleaner fuels can be sped up through narrowing their price premiums over fossil fuels and by making them more widely available. But the alternative fuel type of choice will depend on the degree of decarbonisation mandated by regulators.

“Policymakers and regulators can help close the cost gap between green fuels and fossil fuels and create a level playing field for all shipping companies to accelerate their adoption of green fuels,” stated GMF.

Meanwhile, GMF chief executive Johannah Christensen added that “to reach a zero-emissions future, the industry needs a more ambitious regulatory framework with clear reduction targets and supporting policies to close the cost gap between green fuels and the fossil fuels that currently power the global fleet.”

The international maritime non-profit GMF also noted that while ports and alternative bunker fuel suppliers would prioritise “individual fuels” in the near-term, they are expected to eventually offer “multiple fuel types” to gain a competitive edge.

The report also estimated that internal combustion engines will remain the “preferred technology” over fuel cells through to 2050.

By Konica Bhatt

Please get in touch with comments or additional info to news@engine.online