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

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.