In 2020, the International Maritime Organization (IMO) introduced regulations aimed at reducing sulphur emissions from marine fuels. This marked a significant turning point for the shipping industry, as it sought to address the issue of air pollution from ships. The new rules pushed companies to make difficult decisions about how to comply with these changes.
Shipping companies responded in different ways. Some chose to adopt low-sulphur-compliant fuel, essentially taking a “wait-and-see” approach. This allowed them to continue operations without major adjustments, but they had to absorb the higher costs of the new fuel. Other companies decided to stick with the same type of fuel they were using, but installed scrubbers on their vessels. These scrubbers captured sulphur emissions, allowing the ships to remain compliant without switching fuel types. Finally, a few companies opted to invest in dual-fuel LNG vessels, particularly for new builds. For their existing fleets, they largely adopted the compliant fuel solution.
Each of these approaches had its own set of challenges and potential benefits. Companies that delayed making any significant changes often found themselves falling behind their competitors, who were able to lower their costs by adapting to the new energy landscape. Over time, a greater number of businesses shifted to the more proactive approaches, investing in scrubbers or LNG vessels as a means of staying competitive.
Looking at the industry today, the focus is now on reducing carbon emissions. The choices facing the industry are even more varied than in 2020, with options ranging from biofuels and LNG in the short term, to alternatives such as ammonia, methanol, and hydrogen in the long term. However, despite the appeal of a single, all-encompassing solution, it seems that the reality will be more complex and varied.
Different companies are already taking different routes based on their particular circumstances. Key decisions need to be made, such as whether to invest in new vessels or ensure the existing fleet is compliant. The cost and availability of the chosen fuel also play a major role in these decisions.
In this context, technologies like MSAR® and bioMSAR™ stand out as effective solutions for companies looking to reduce emissions without the high expense of new builds or the lengthy process of retrofitting existing vessels. These technologies offer the potential to lower both emissions and fuel costs for current fleets.
As the journey towards marine decarbonisation continues, it’s evident that no single technology will dominate the sector. Nonetheless, solutions like those from Quadrise Plc, which offer both lower energy costs and emission reductions, are providing shipping companies with a valuable competitive edge as they navigate this increasingly complex transition.
Quadrise plc (LON:QED) is an energy technology provider whose solutions enable production of cheaper, cleaner, simpler and safer alternatives to fuel oil and biofuels, proven in real world applications. Quadrise technologies produce transition fuels called MSAR® and bioMSAR™, which allow clients in the shipping, utilities and industrial sectors to reduce carbon emissions whilst also saving costs.
