The maritime transport industry and the challenges of transitioning to green fuels

The maritime transport industry and the challenges of switching to green fuels

The maritime transport sector supports the global economy, as it participates in approximately ninety percent of total trade, and estimates issued by the International Chamber of Shipping indicate that about 11 billion tons of goods are transported by ships every year, from raw materials to finished products. On the other hand, global shipping emits approximately 3% of total global carbon emissions, emissions that could rise again – if left unchecked – by half by 2050.

In this context, a new report showed that 33% of the giants of the shipping industry did not make any efforts to reduce the carbon footprint and move to green fuels within the framework of the 2050 strategy, while a recent study – related to the shipping industry’s transition to low-carbon fuels – revealed that almost a third of companies operating in this vital industry cannot confirm the type that their ships will use in the contracts. Next.

Divergence in trends among clover companies

The Global Maritime Decarbonization Centre, the World Maritime Forum, and the Maersk Center for Net Zero Carbon Shipping conducted a survey among a number of shipping companies, which own and operate fleets that together account for nearly 20% of the total global shipping industry.

The survey showed that 46% of participants have already run pilot programs that include one or more types of low-carbon fuels, such as biodiesel, while 35% of them have not taken any action regarding the use of more environmentally friendly fuels.

On the other hand, 33% of survey participants reported that they had no specific idea about the type of fuel their fleets will operate on between 2030 and 2050, while 67% of them showed varying expectations regarding the type of fuel used in the future.

Increasing pressure on shipping companies

While experts expect that by 2050, marine transport fleets will use green ammonia, biodiesel, and conventional fuels at a rate of 16% each of these types – blue ammonia, liquefied natural gas (LNG), methanol produced by renewable energy sources, biomethanol, biomethane, and methane produced by renewable energy sources; The fuel for these fleets may have been between 6% and 10% each.

According to participants, shipping companies plan to distribute consumption between several types of fuel, which their ship engines can use these types interchangeably, including: heavy fuel, marine gas oil, marine diesel oil, biodiesel, and liquefied natural gas.

We will not be exaggerating if we say: Achieving a leap towards relying on green fuel in the shipping industry may require decades, but the survey participants explained what it would take to shift this industry togreen fuel faster, as they limited this to four factors, which are:

1. Availability of alternative fuels.
2. Reducing the cost of alternative fuels.
3. Customers’ willingness to bear the increased cost.
4. Amendment of the regulatory and legislative frameworks.