FEATURE:
Shipping’s Headwinds – The Drivers for Decarbonisation
Although ships and engines will have to be flexible and adaptable, this part of the challenge is insignificant compared with ensuring the right fuel is ready as well as the required supporting infrastructure on land. Therefore, the bulk of the technology challenge is in land infrastructure and in the energy sector.
The supply volumes of alternative fuels or their sourcing at major ports will be a factor that will determine their adoption over the coming decades. A carbon price may be needed to incentivise and finance this adoption.
Value-chain emissions
IMO is focussed on the emissions of shipping operations. Governments may want to focus on entire value chain emissions, bringing into consideration how alternative fuels are produced. The use of carbon carrying fuels such as LNG and methanol would need to be combined with development of carbon capture technical capability. Infrastructure readiness at the world’s ports to utilise and sequester ‘bad’ molecules would need to be in place. Upstream emissions also present challenges.
A good example is Hydrogen, currently economically produced using fossil fuels - which defeats the purpose emissions-wise. Hydrogen can be produced in varying degrees of blue and greenness utilising emerging electrolysis technology at scale powered by renewable energy sources. Hydrogen is stored in gaseous or liquid form although extremely cool liquified temperatures present challenges. Combining hydrogen with nitrogen and forming ammonia, a far easier molecule to handle, is a pathway being explored by many for long distance shipping clean fuel requirements.
Electrification of propulsion brings with it range factors which may mean more frequent point to point charging and chartering patterns. Solutions including onboard solar, wind turbine and sail, and even nuclear propulsion are available.
Achieving Net Zero
Ship owners and port authorities need to now consider what Net Zero means for their fleet portfolio and operations. There are ship lifespan and finance considerations, as well as infrastructure build-out requirements onshore. Nobody knows what these will look like. Decisions need to be taken to ensure a commercially-viable transition to decarbonisation.
Market based measures, policy interventions and incentive schemes are likely needed for the sector to develop a level zero carbon transition playing field. IMO 2020 i.e. getting from 3.5% to 0.5% sulphur-content was a painful but relatively straightforward three-year lead-in exercise, some would say the experience was a storm in teacup. Achieving Net Zero is going to be much harder. The industry cannot do it alone, so carrots and sticks are needed effectively during this decade to make decisions in the run-up to 2030 given long lifespan of ships.
Fuel cells are
becoming more efficient and are seeing greater use in transportation including shipping, buses and commercial fleets where they circumvent the charging time of battery electric.