With the pressing need to reduce greenhouse gas emissions and meet international climate targets, shipowners and operators are exploring the potential of alternative fuels to pave the way for greener shipping. 

For members of the Emirates Shipping Association, understanding and adopting these new fuel options is not only a matter of regulatory compliance but also a strategic move to remain competitive in a changing market landscape.

The Rise of Alternative Fuels

As traditional heavy fuel oil (HFO) faces increasing scrutiny due to its environmental impact, alternative fuels such as hydrogen, ammonia, methanol, and biofuels have emerged as viable solutions to power the next generation of ships. These fuels offer the promise of significantly lower emissions, contributing to the industry’s goal of reducing carbon output and other pollutants. The International Maritime Organization (IMO) has set ambitious targets to cut the shipping industry’s total annual greenhouse gas emissions by at least 50% by 2050 compared to 2008 levels. To meet these targets, transitioning to cleaner fuels is crucial.

The Future of Maritime Mobility – Hydrogen and Ammonia 

Hydrogen is gaining attention for its potential to provide zero-emission energy when produced from renewable sources. The downside? Hydrogen storage systems need to handle high-pressure gaseous hydrogen or cryogenic liquid hydrogen, requiring specialised tanks and infrastructure. Changes are needed to the fuel injection system, ignition system, and engine materials to handle hydrogen’s properties, such as its lower ignition energy and higher combustion temperature.

Ammonia does not emit carbon dioxide when burned, and is another promising candidate due to its existing infrastructure and ease of storage and transport. However, its use in the maritime context requires careful consideration because ammonia is toxic and corrosive. While it is well-known for its application as an agricultural fertilizer, its adoption in shipping demands stringent safety measures for handling, storage, and engine use.

The Near Future – Biofuels

Biofuels, derived from organic materials, offer a more immediate solution as they can be blended with conventional marine fuels and used in existing engines, making them a flexible option for reducing emissions in the short term. Considered as ‘drop-in’ fuels, meaning they can be used directly in existing diesel engines without significant modifications.

Blended at various ratios included B5 (5% biofuel), B20 (20% biofuel), and even B100 (100% biofuel), which is pure biodiesel, engines made by companies including Wärtsilä, MAN, and Caterpillar can often use biofuel blends without requiring substantial engine redesign or replacement.

Benefits for Shipowners

For shipowners, adopting alternative fuels can bring multiple benefits beyond compliance with environmental regulations. By investing in alternative fuels, shipowners can future-proof their vessels against tightening emission standards and avoid potential penalties and market restrictions. Additionally, early adopters of cleaner fuel technologies are likely to gain a competitive edge, enhancing their reputation and appeal to environmentally conscious customers and partners.

Alternative fuels can also offer long-term cost advantages. While the initial investment in retrofitting vessels or developing new ships to accommodate these fuels might be high, the operational cost savings from increased fuel efficiency and potential tax incentives can offset these expenditures. As global production and infrastructure for these fuels scale up, prices are expected to become more competitive, making them a financially viable choice for the maritime sector.

Overcoming Challenges

Despite the clear benefits, the adoption of alternative fuels is not without challenges. The industry faces hurdles such as the need for substantial investment in new infrastructure, the development of global bunkering networks, and the establishment of clear regulatory frameworks. Additionally, the current supply of alternative fuels is limited, and scaling up production to meet global shipping demand will require time and coordination across industries and governments.

However, these challenges also present opportunities for innovation and collaboration. By working together, shipowners, fuel producers, technology developers, and regulatory bodies can accelerate the development of alternative fuel solutions and infrastructure. Emirates Shipping Association is actively facilitating these collaborations on behalf of our members, advocating for supportive policies, and providing members with the latest information and resources on alternative fuel options.

A Bright Future for Fuels

The shift towards alternative fuels represents a critical step in the maritime industry’s journey towards sustainability. For members of the Emirates Shipping Association, embracing these greener fuel options is essential to staying compliant, competitive, and responsible. By investing in alternative fuels, shipowners and operators can lead the charge in creating a cleaner, more sustainable future for global shipping, benefiting both the environment and your businesses.