The Week in Alternative Fuels
Here are some key developments in alternative bunker fuels from the past week.
PHOTO: Street view of International Maritime Organisation building in Lambeth, London, UK. Getty Images
Much attention was paid to a crucial IMO working committee meeting held last week. The majority of IMO member states endorsed setting a net-zero emissions target for shipping by 2050 to reduce greenhouse gas emissions, according to University Maritime Advisory Services (UMAS). They advocated for mandating ships to use at least 5% alternative fuels by 2030, said UMAS.
Implementing these regulations could spur more renewable energy firms to ramp up their production of cleaner marine fuels, such as green methanol and ammonia. And ship designers, builders and owners would have greater incentives to develop alternative fuel-powered vessels.
A consortium including ammonia producer Yara, naval architect Breeze Ship Design and engine manufacturers MAN Energy Solutions and Wärtsilä debuted one such vessel concept this week. The consortium unveiled an initial design for an ammonia-powered gas carrier under the Nordic Green Ammonia-Powered Ships (NoGAPS) project. The plan is to operate the vessel in north Atlantic and northwestern waters by 2025.
Another industry consortium has been exploring whether ammonia bunker infrastructure can be established in the US Port of Savannah. Several project partners, including Danish shipping major A.P. Moller – Maersk, Japan’s Sumitomo Corporation and Georgia Ports Authority, will also look into whether ship-to-ship bunkering of ammonia can be feasible off the US East Coast, and how a green ammonia supply chain can be drawn up to cater to future ammonia-powered ships.
However, the maritime industry has repeatedly stressed that production and uptake of alternative fuels require both financial and regulatory support. The EU has started to take steps to address some of these concerns, with a recent deal on the FuelEU Maritime regulation and with the proposed Net Zero Industry Act. But there is still a lot of room for regulators to refine their approach to incentivise green fuels production. Tomasz Wlostowski, managing director of EU Strategies, suggested that simplifying regulations and offering more subsidies to producers could stimulate ammonia production in Europe. The EU-proposed Net Zero Industry Act should also support the production of blue ammonia, he added.
According to the International Renewable Energy Agency (IRENA), the pace of the energy transition will hinge not only on regulatory incentives, but also on financial support. IRENA recommends redirecting $1 trillion/year of fossil fuel investments into renewable energy technologies and infrastructure by 2030. It estimates that we can only limit global warming to 1.5°C through "cumulative investments" of $44 trillion in green transition-related technologies by 2030.
By Konica Bhatt
Here is our selection of top five alternative fuels stories from this week:
Stronger IMO support for net-zero by 2050 emissions target – UMAS
Initial design of Nordic ammonia-fuelled vessel revealed
Consortium to explore ammonia bunkering in the US Port of Savannah
Less regulations and more subsidies crucial to spur ammonia demand in Europe – EU Strategies
