The pathway for decarbonization in the shipping industry has been laid out by the IMO, providing clear objectives and checkpoints along the way. The global industry regulator has set a goal of net zero-emissions from ships for around The energy transition will be complex, costly and demand significant resources from shipping and individual owners and operators. No single technology or fuel is going to deliver the shipping industry to a net-zero end goal, and the sector is rightly exploring all areas to develop a sustainable pathway to lower carbon intensity.
Critically, the development, supply and usage of zero-carbon fuels across the sector will be essential to meeting the objectives set by the IMO.
However, the challenges faced along the marine energy value chain to develop and adopt the infrastructure and technology to support low-carbon fuels will be long and complex. The future of marine energy will also be multi-fuel; increasingly common solutions include LNG, biofuel and methanol in the short to medium term, while the use of ammonia and hydrogen offer alternatives for the future.
However, availability of these fuels are low and shipping faces competition for supply from other advanced sectors. Crucially, when they do come into the market, they will also be exponentially more expensive than current fuels, which will significantly impact their widespread uptake.
Differences in energy density between alternative fuels and fuel oils exacerbate this difference in price. Fuel bills are already the major constituent operational cost for ship owners and operators and they face the continual commercial imperative to reduce them, a force that will only increase with the switch to alternative fuels.
