Why are shipping companies looking at alternate fuels for ocean voyages?

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Global maritime trade contributes roughly three percent of greenhouse gas emissions yearly – a major cause of global warming and climate change.

'Large uncertainties' exist around the availability of green fuels, which shipowners and operators have highlighted as obstacles to investment in zero-emission ships. Photo: APEven if you’re on the most fuel-efficient cruise ship, you’ll still be responsible for

No wonder shipping companies are increasingly shifting to green fuels in line with the industry-wide goal of achieving at least 5-10 percent uptake of zero or near-zero greenhouse gas emission energy sources by 2030.Among the multiple fuels and technologies being considered, green methanol and green ammonia are seen as promising options for achieving the decarbonisation goals set forth by the International Marine Organization , a UN agency responsible for regulating international shipping.

Green ammonia is produced using hydrogen from renewable electricity-powered electrolysis and nitrogen, using very low to zero production emissions. Similarly, green methanol is also produced with very low to zero production emissions.What’s missing, then? Areas with good renewable energy resources, low capital costs, and access to hydrogen production support mechanisms will be able to produce green ammonia and methanol “several times cheaper” than other regions.

“Federal incentives in the Inflation Reduction Act have made the United States one of the most competitive regions in the world for green fuel production,” said Aparajit Pandey, principal and shipping decarbonisation lead at RMI.

 

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