The maritime industry, responsible for transporting approximately 90% of global goods, is undergoing a significant transformation to reduce its environmental impact. Traditional heavy fuel oils, known for their high greenhouse gas emissions, are being reevaluated in favour of more sustainable alternatives. This shift not only addresses environmental concerns but also presents compelling investment opportunities in emerging fuel technologies.
Liquefied Natural Gas (LNG) has gained traction due to its ability to lower CO₂ emissions and virtually eliminate sulfur oxides and particulate matter. Its adoption is evident, with LNG-powered vessels accounting for about 51% of alternative-fuelled ship orders in 2024.
Biofuels offer another promising avenue, significantly reducing lifecycle CO₂ emissions. Their compatibility with existing marine engines allows for a seamless transition, blending with conventional fuels to decrease the industry’s carbon footprint.
Methanol is emerging as a viable alternative, with its use in dual-fuel engines providing operational flexibility. In 2023, methanol became the most popular choice for alternatively fuelled contracts, highlighting its growing acceptance in the industry.
Green ammonia is also gaining attention as a zero-carbon fuel option. Companies like Höegh Autoliners and Fortescue have endorsed green ammonia, advocating for its adoption to meet shipping’s emission reduction goals.
The transition to these alternative fuels is not without challenges, including the need for new infrastructure, technological advancements, and significant capital investment. However, the drive towards decarbonisation is steering the maritime sector towards innovative solutions, presenting investors with opportunities in sustainable fuel technologies and related infrastructure developments.
In summary, the maritime industry’s shift towards alternative fuels is creating a dynamic landscape ripe for investment. By focusing on sustainable energy sources like LNG, biofuels, methanol, and green ammonia, the sector is not only addressing environmental imperatives but also opening avenues for growth and innovation.
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.
