Introduction:

Maritime trade plays a vital role in connecting economies around the world, enabling the movement of over 80% of the world’s goods. It provides critical access to resources, supports industries, and creates jobs, contributing to economic growth and improving people’s lives. However, the shipping industry is also responsible for a significant portion of global greenhouse gas emissions, which contribute to climate change and its associated impacts, such as rising sea levels, extreme weather events, and ocean acidification. Additionally, traditional fuels such as heavy fuel oil (HFO) emit pollutants that harm both the environment and human health. As such, there is a growing consensus that the shipping industry must decarbonize and adopt more sustainable, resilient, and human-centric fuel options. In this blog post, we’ll explore some of the alternative fuel options available to the maritime industry and how they can contribute to a more sustainable future.

Emerging Sustainable Fuel Options:

A range of emerging fuels, from low-carbon to no-carbon options, are being explored for their potential to reduce greenhouse gas emissions and other environmental impacts. However, each fuel type presents unique challenges and requirements, such as infrastructure and engineering considerations. This includes everything from onboard storage to land-based fueling infrastructure, as well as the development of an entire ecosystem of producers, users, and support services for each fuel type. As such, the transition to a no-carbon shipping industry is likely to be phased, with incremental progress towards towards sustainability.

Several alternative fuel options are available to the maritime industry, each with its advantages and disadvantages. Here are some of the most promising ones:

1. Liquefied Natural Gas (LNG)

LNG is an alternative to heavy fuel oil that has gained traction in recent years. It is composed mainly of methane, which is a clean-burning fossil fuel that produces fewer greenhouse gases, sulfur oxides, and nitrogen oxides when burned than HFO. LNG is stored at a temperature of minus 162 degrees Celsius, which transforms it into a liquid state that requires special infrastructure for storage and handling. The cryogenic temperature required for storage presents challenges and safety concerns, but once onboard a vessel, LNG can be used safely and efficiently. Compared to HFO, using LNG can result in a reduction of up to 30% in carbon dioxide emissions and up to 99% in sulfur oxide emissions, making it a more environmentally friendly fuel. It also produces no particulate matter when burned, which contributes to improved air quality. However, the process of producing LNG requires energy and resources, and it is not a carbon-neutral fuel. Nonetheless, it is a step in the right direction towards reducing emissions in the shipping industry.

2. Methanol

Methanol is a clear, colorless, and flammable liquid with a chemical formula of CH3OH. It can be produced from fossil fuels, such as natural gas or coal, or through the use of renewable sources such as biomass or captured carbon combined with green hydrogen. Methanol is a liquid at atmospheric pressure and can be stored and handled similarly to traditional fuels. However, it requires a lower storage temperature of around -20°C, and its combustion produces carbon dioxide and nitrogen oxides, contributing to air pollution. Compared to heavy fuel oil, methanol emits fewer greenhouse gases, sulfur oxides, and particulate matter, making it a cleaner fuel option. Nonetheless, the production of methanol using fossil fuels contributes to carbon emissions, while the use of renewable sources makes it a more sustainable fuel option.

3. Bio/e-methane

Bio/e-methane is a carbon-neutral fuel produced by capturing and cleaning biogas from organic materials such as sewage, food waste, and agricultural waste. Methane is the primary component of biogas, and when it is cleaned, it becomes bio/e-methane. This fuel can also be produced through the electrolysis of water using renewable energy. Bio/e-methane produces fewer greenhouse gases and pollutants when burned than fossil fuels, making it a cleaner fuel option. It is stored in compressed or cryogenic form and requires specialized infrastructure for storage and handling.

4. Hydrogen

Hydrogen is a promising fuel for the shipping industry because its combustion produces no carbon emissions, making it an ideal solution for decarbonizing the industry and mitigating the effects of climate change. Hydrogen is an energy carrier and not an energy source, which means it must be produced using other energy sources such as renewable electricity or fossil fuels. The sustainable option is to produce hydrogen through the electrolysis of water using renewable energy, which is called green hydrogen.

Green hydrogen production is becoming increasingly popular due to the declining costs of renewable energy sources such as solar and wind. However, producing hydrogen through the electrolysis of water requires a significant amount of energy, and the process is still expensive. In contrast, hydrogen can also be produced from fossil fuels such as natural gas or coal, but this approach produces carbon emissions, making it less sustainable.

Hydrogen has some challenges associated with storage and handling, as it is a highly flammable gas that requires specialized infrastructure for storage and transportation. Hydrogen must be stored in compressed or cryogenic form to reduce the risk of explosion or fire. This requires specialized infrastructure, such as tanks, pipelines, and compressors, which can be costly to build and maintain. Furthermore, hydrogen has a low energy density, which means that it requires more space for storage than traditional fossil fuels. This can make it challenging to store large amounts of hydrogen on board ships.

Despite these challenges, several initiatives are underway to explore the potential of hydrogen as a fuel for shipping. The International Maritime Organization (IMO) has set a goal to reduce greenhouse gas emissions from shipping by at least 50% by 2050 compared to 2008 levels. To achieve this goal, the IMO has identified hydrogen as a potential fuel source and is encouraging the development of hydrogen-powered ships.

One company that is exploring the use of hydrogen in shipping is the Japanese shipping company, NYK Line. The company is working on a project to develop a large, pure car and truck carrier (PCTC) that will be powered by hydrogen fuel cells. The ship, which is expected to be completed in 2024, will be equipped with a hydrogen fuel cell system that will generate electricity to power the ship’s propulsion and auxiliary systems. The project is part of a larger initiative to promote the use of hydrogen in the shipping industry and reduce greenhouse gas emissions.

5. Ammonia

Ammonia is a compound made up of nitrogen and hydrogen, and it is commonly used in fertilizers and other industrial applications. However, ammonia can also be used as a fuel for ships. One of the main advantages of ammonia is that it can be produced using renewable energy sources such as wind and solar power, making it a carbon-neutral fuel. Furthermore, ammonia has a high energy density, which means that it can store more energy per unit volume than hydrogen.

Ammonia must be stored in a liquid state under high pressure or low temperature to maintain its state. The storage and handling of ammonia require specialized infrastructure and procedures, which can be costly to build and maintain. In addition, ammonia combustion produces nitrogen oxides, which contribute to air pollution, but with advanced engine design these emissions can be reduced.

Despite these challenges, several initiatives are underway to explore the potential of ammonia as a fuel for shipping. For instance, the Dutch shipping company, Spliethoff, has ordered two new vessels that will be powered by ammonia fuel cells. The project, which is a collaboration between Spliethoff, the Dutch shipbuilder, and the Finnish engine manufacturer Wärtsilä, aims to demonstrate the feasibility and safety of ammonia as a marine fuel.

Another example is the Green Ammonia Consortium, a group of Japanese companies that includes shipping companies, manufacturers, and energy companies. The consortium plans to build the world’s first ammonia-fueled tanker by 2024 and establish a supply chain for green ammonia. The project, which is supported by the Japanese government, aims to reduce the carbon footprint of the shipping industry and promote the use of green hydrogen and ammonia.

Catalysts for Change:

The transition to alternative fuels in the shipping industry requires not only the development and use of new fuels but also changes to the engines that power ships, storage and handling infrastructure, and the fueling process.

1. Engine technology

Advances in engine design are necessary to accommodate new fuels. Many of the new fuels being explored have different properties than traditional fuels, and engines must be designed to operate optimally with these new fuels. For instance, LNG engines require specialized equipment to vaporize the fuel and mix it with air before combustion. Fuel cells, which are being explored for their potential to power ships with hydrogen, require completely different engine designs than traditional internal combustion engines.

2. On board storage considerations

New fuels may require new storage infrastructure to handle them. For instance, hydrogen and ammonia require specialized storage tanks that can withstand high pressures or low temperatures. The size and shape of these tanks may also differ from traditional fuel tanks, which can affect the design of the ship. Additionally, ships may need to carry multiple types of fuel to accommodate different routes and fuel availability.

3. Land based fueling infrastructure

The availability and accessibility of new fuels is also a consideration. The development of a sustainable and resilient fueling infrastructure requires not only the production of new fuels but also the establishment of a supply chain to transport and distribute them. The availability of new fuels will depend on factors such as local regulations, infrastructure, and resources. For instance, in some areas, the availability of biogas or bio/e-methane may be limited due to the lack of organic waste streams.

4. Bunkering process

The process of refueling ships with new fuels, known as bunkering, is also an important consideration. Bunkering infrastructure must be developed to ensure the safe and efficient transfer of new fuels to ships. The bunkering process for new fuels may differ from traditional bunkering, requiring specialized equipment and procedures. Additionally, the cost of bunkering may vary depending on the type of fuel and the availability of infrastructure. As a result, the adoption of new fuels may require changes to the supply chain and logistics of fuel delivery.

Overall, the transition to alternative fuels in the shipping industry requires not only the development and use of new fuels but also significant changes to the infrastructure and processes that support the industry. The development of a sustainable and resilient fueling ecosystem for the shipping industry will require collaboration across industries and government agencies to ensure the availability, accessibility, and safety of new fuels.

The Way Forward:

The shipping industry is facing an urgent need to decarbonize and adopt more sustainable fuel options. While traditional fuels such as heavy fuel oil have powered the industry for decades, they also contribute to climate change, air pollution, and other environmental and health impacts. Alternative fuels such as LNG, bio/e-methane, methanol, hydrogen, and ammonia offer promising alternatives that can help reduce emissions, improve air quality, and support a more sustainable, resilient, and human-centric future.

Each of these alternative fuels has its advantages and disadvantages, and the choice of fuel will depend on a variety of factors, including the specific application, the infrastructure available, and the environmental impact of the fuel. The shipping industry must assess each fuel option based on its technical, environmental, and economic feasibility, as well as its social and political implications.

To support the transition to more sustainable fuel options, the shipping industry must work collaboratively with governments, regulators, investors, and other stakeholders. The development of sustainable fuel options requires significant investments in research and development, infrastructure, and logistics, as well as policies and incentives that promote the adoption of these fuels.

At TSOR Group, we are privileged to be supporting the maritime industry in its transition to a more sustainable future. To achieve this goal, we are leveraging our experience in integrating green energy production into California’s ports to operationalize green energy hubs in the US Gulf that will serve as critical infrastructure for the production, storage, and distribution of sustainable fuels such as green hydrogen and ammonia. These hubs will not only benefit the shipping industry but also support the agricultural and trucking sectors in the US Gulf region in moving towards greater resiliency and sustainability, while creating new human-centric opportunities for better economic outcomes.