Maersk, the largest container shipping firm in the world, is going to have carbon-neutral ships on the water. Securing the correct fuel for these vessels presents its own set of challenges.
The company has 13 ships on order from South Korea that run on green methanol, which is considered green compared to the fossil fuels that have powered global shipping for decades.
Maersk has a plan to have net- zero greenhouse gas emissions by the year 2040. The challenge includes procuring the vessels as well as other parts. It's one thing to get them fully operational with green fuels.
Maersk's head of decarbonization said it was a chicken and egg situation.
It's not ideal that the vessels will arrive before the fuels. There wasn't a supplier when we ordered the vessels.
To put a demand signal in the market was one of the points of ordering the vessels.
In March, the company signed partnerships with six energy developers around the world.
Maersk expects to have all of its ships running on green fuels by the end of the century, according to Christiansen. The intention is clearly that these ships will be operating on green Methanol, even though the ships could run on fossil fuels in the interim.
The purchase of six methanol-powered ships was announced by the rival company.
At least 10% of ships' consumption will be covered by alternative fuels, like biomethane, in the next five years, according to CNBC.
To make a difference to their carbon footprint, shipping companies will need enough green fuel to power their ships.
If Maersk and other firms have to use fossil fuels in the interim to operate their new ships, it would be a step away from their decarbonization goals. 3% of the world's emissions come from the shipping industry.
The dilemma facing the shipping industry is similar to the one faced by the early days of electric cars, according to Faig Abbasov, the shipping director for Transport & Environment.
The demand signal needs to be sent before the investment decisions are made. The market will not favor green fuels if we leave it to the market.
Abbasov said that many industries have set targets for decarbonizing or reaching net-zero emissions with 2050 being a recurring target.
It's great that the decarbonization date is in the future. In practice, it doesn't mean much because 2050 targets set globally or at the European level are not enforceable on individual companies. He said that the target is an impersonal one.
Demand for green fuels will be driven by strict regulation.
The European Union has a law called the FuelEU Maritime Regulation which sets targets for ships to reduce their greenhouse gas emissions. It's expected to be in effect in 25 years.
Maersk has hitched its ambitions to green methanol but there is no full consensus on what alternative fuels the industry should be pursuing.Bryan Comer of the International Council on Clean Transportation said that the regulation made it easier to invest in ships and infrastructure.
There isn't a way for cleaner fuels to compete with fossil fuels.
While Europe is just one part of the global shipping industry, regional regulation will drive others to follow suit, such as in the U.S., Asia and eventually at the level of the U.N.'s International Maritime Organization.
There is no consensus on what alternative fuels the industry should be pursuing to decarbonize the world's logistics routes.
Ammonia is one of the alternatives we look at. Christiansen said that infrastructure on ships to support ammonia is still some years away.
Ammonia is a gas. It is difficult to handle, it is expensive to handle, and it is very toxic to the marine environment. Safety on board is an issue.
The fuel that will have the least regrets in my mind is green hydrogen.
To store enough green hydrogen on board the ship, it needs to be very cold to begin with, and then you need to store it in very insulated tanks.
It takes up a lot of space, the fuel is already low energy density by volume, and you need to make sure that the areas in which you are operating have green hydrogen for you to fuel in.
This helps to understand the issue. If the industry is to meet its decarbonization ambitions, the land-side infrastructure for refueling and maintenance needs to be invested in.
The size of the ship, the type of ship, and how it operates are all factors that will affect the decision.
Christiansen said that they wouldn't have the luxury of just using one technology to solve the problem.
All Rights Reserved © 2024
