Global Sustainability Agenda #30: Alternative marine fuels challenges and the need for stakeholders’ coalition to decarbonize the maritime industry

Global Sustainability Reality

Many countries pledge to reach net zero by 2050. Few plan for it. (EE News)

Record Loss Of Antarctic Sea Ice Linked To Climate Chang (Weather)

Climate change and turbulence: Experts weigh in after death on Singapore Airlines flight (NBC News)

Climate change made U.K.’s waterlogged winter worse (BBC)

Slowing climate change is possible—here’s how nations could make it happen (Phys)

In a warmer world, tornado behaviour is changing – this is how we can prepare (BBC)

Extreme Weather 2024’s Climate Crisis: extreme weather around the globe signals the urgent need for action (Climate Council)

Climate Change, La Niña Slated to Drive Record-Breaking 2024 Atlantic Hurricane Season (UCS USA)

The Rise in America’s Billion-Dollar Extreme Weather Disasters (Visual Capitalist)

As the climate dries, American West faces problematic future, experts warn (UNEP)

G20: Affordability and Social Impacts of Energy Transitions (IEA)

Brazil at the G20 and leadership in the energy transition (G20.org)

Global Sustainability Business Impact

Plans unveiled for U.K.’s first green shipping corridor (Edie)

NatPower Marine and Peel Ports Group announce plans for first ‘green shipping corridor’ between U.K. and Ireland (American Journal of Transportation)

Global carbon emissions pricing raised a record $104 bln in 2023 (Reuters)

Op-Ed: Senator Kelly Throws U.S. Maritime Industry a Lifeline — Let’s Seize It (GCapitain)

To Make Clean Industry Stick, the United States Needs New Trade Mechanisms (Center for Strategic & International Studies)

Collaboration to the fore as maritime charts its course towards a greener future (Seatrade-maritime)

Bipartisan group of lawmakers releases roadmap for revitalizing U.S. maritime (Marinelog)

Germany sets out a concept for green industry market in a bid for decarbonization (Reuters)

Graduating seniors seek degrees in climate change, and more U.S. universities deliver (kxan)

How Top U.S. Universities Cut Their Carbon Emissions to Help Fight Climate Change (Carbon Credits)

For decades, the maritime industry has relied on Heavy Fuel Oil (HFO), a highly polluting fuel that requires heating to flow properly. However, new regulations by the International Maritime Organization (IMO) mandate the shipping industry to cut carbon emissions by at least 30% by 2030, prompting a shift away from HFO.

Limiting sulfur content and nitrogen oxides (NOx) emissions from marine fuels to decarbonize the sector by the end of the century is a considerable challenge. These regulations lead shipowners to explore low-sulfur and low-carbon alternative fuels, necessitating transitioning to cleaner fuels like methanol, ammonia, hydrogen, and potentially electricity and nuclear power.

The path forward

There are at least fifteen marine fuels under research to support the transition: Marine gas oil (MGO), Marine distillate oil (MDO), Liquefied petroleum gas (LPG), Liquefied natural gas (LNG), Methanol, Straight vegetable oil (SVO), Hydrotreated vegetable oil (HVO), Fatty-acid methyl esters (biodiesel), Hydrothermal liquefaction (biocrude), Pyrolysis oil (bio-oils), Ammonia, Hydrogen, bio-LNG and electro fuels (eMethanol, eAmmonia, etc.).

Companies like Maersk are exploring alternative fuels such as methanol, which, when sustainably sourced, is less polluting than fossil fuels.

Here are some key challenges associated with this transition:

1. Fuel Availability: Many alternative fuels, such as hydrogen, ammonia, methanol, and biofuels, are not yet widely available. Ammonia is toxic and difficult to burn efficiently. Hydrogen, while clean, is costly and difficult to handle due to its low boiling point and tendency to leak.
2. Infrastructure Challenges: Transitioning to alternative fuels requires significant infrastructural changes, including new bunkering facilities, engine modifications, and production scale-up. The”chicken-and-eg” where the lack of infrastructure hinders fuel adoption and vice versa is always under consideration. Developing the necessary infrastructure for production, storage, and distribution is a significant hurdle.
3. Cost: Alternative fuels often have higher costs than traditional marine fuels like heavy fuel oil. This includes the cost of the fuel itself and the investments required for new technology and infrastructure. For instance, methanol supply facilities are expensive, and ammonia engines face technical challenges. The shipping industry also needs to consider other methods to reduce emissions, such as wind-assisted technology and stricter regulations on energy efficiency.
4. Technology and Compatibility: Existing vessels may require significant retrofitting or may not be compatible with new fuel types at all. Compatibility with existing marine engines, fuel stability, energy density, and storage requirements are significant technical challenges. Developing and deploying new engines and fuel systems that can efficiently use alternative fuels are critical.
5. Regulations and Standards: Clear, consistent regulations and standards governing the use of alternative fuels are needed. This includes safety standards, fuel quality standards, and regulations regarding emissions.
6. Safety Concerns: Some alternative fuels, such as hydrogen and ammonia, pose safety risks due to their flammability and toxicity. Ensuring safe handling, storage, and use is essential.
7. Environmental Impact: While alternative fuels aim to reduce greenhouse gas emissions, their full environmental impact, including production and supply chain emissions, must be considered. Life-cycle assessments are necessary to ensure that these fuels provide a net environmental benefit.
8. Economic Viability: The transition to alternative fuels requires significant investment, and the economic viability of these fuels is still uncertain. To comprehensively assess the economic viability of these alternate fuels, at least five key dimensions shall be considered: economic, environmental, infrastructure, safety, and technical.
9. Metrics: Under each dimension, there are its specific metrics, such as infrastructural (bunkering, production levels, engine compatibility, storage convenience), technical (volumetric energy density, cold weather performance, abrasiveness, corrosiveness, stability, miscibility with diesel, fuel standards) economic (fuel cost, retrofit cost), safety (toxicity, flammability limit, explosion risk, spill risk), and environmental (life cycle greenhouse gas emissions [GHG], SOx, NOx, and PM2.5).
10. Research and Development Priorities: Investing in R&D is a critical priority to overcome the challenges of fuels transition. This includes improving fuel technology, developing compatible engines, and ensuring safety standards.

In sum, a combination of regulatory and market forces is driving the development of alternative marine fuels. Three value chains are central to steering the sector’s decarbonization actions, as they affect other value chains and determine what is collectively achieved: the marine fuel value chain, the shipbuilding value chain and the maritime operations value chain.

Finally, significant investments in infrastructure, technological advancements, and coordinated efforts among stakeholders are necessary to achieve maritime decarbonization goals.