Advancements in low-carbon marine fuels create new opportunities

Maritime shipping, a key player in the global economy, is a significant contributor to climate change, accounting for 3.6% of global emissions, surpassing aviation. Despite its impact, the sector has received limited political, media, and public attention, resulting in slow progress in reducing emissions. However, recent efforts have focused on sustainable solutions, particularly sustainable marine fuels (SMF), to lower emissions.

Traditional marine fuels, like heavy fuel oil, emit high levels of sulphur dioxide and other pollutants. In contrast, sustainable marine fuels, derived from renewable sources, produce fewer harmful emissions. Biofuels, made from organic materials such as algae, cooking oil, or plant waste, are gaining traction. These fuels can either replace traditional fuels directly or be blended to reduce emissions. Biofuels are considered carbon-neutral because their combustion emits roughly the same amount of carbon dioxide that the source plants absorbed. However, there are concerns about producing biofuels in sufficient, cost-effective quantities for long-distance maritime journeys.

Other potential sustainable marine fuels include hydrogen and ammonia, which produce zero emissions when burned. However, challenges like production costs, infrastructure needs, and safety must be addressed before these fuels can be widely adopted.

Governments, industry stakeholders, and international organisations are promoting sustainable marine fuels through regulations and incentives. The International Maritime Organization (IMO) has implemented strict sulphur emissions limits under the International Convention for the Prevention of Pollution from Ships (MARPOL), encouraging the use of cleaner fuels. Financial incentives, tax breaks, and research funding further support the development and use of sustainable marine fuels. These policy frameworks necessitate new verification and reporting methods, with organisations like International Sustainability and Carbon Certification (ISCC) certifying biofuels and other renewable fuels.

The IMO aims to increase the use of “zero or near-zero GHG emissions technologies,” including fuels, to at least 5%, and strive for 10%, of energy used in international shipping by 2030. They are developing comprehensive LCA Guidelines to assess the sustainability and lifecycle emissions of SMF. The ISCC is actively engaging with the IMO to facilitate certification schemes if included in the guidelines.

The EU is also working on regulatory frameworks for maritime shipping. The EU’s regulation on CO2 emissions verification and reporting, effective since 2017, forms the basis for this framework. The FuelEU Maritime Regulation, effective from January 1, 2025, targets a 6% reduction in GHG intensity by 2030, with an 80% reduction by 2050. Compliance requirements apply at the fleet level, allowing ships within the same fleet to pool their compliance efforts. The EU’s Emissions Trading System (ETS), extended to the maritime sector from January 2024, incentivises the use of alternative marine fuels.

Adam Kirby, a system manager at ISCC, emphasises that shippers should not wait for regulatory requirements but should seize opportunities to exceed the status quo and become industry leaders. Early adopters of sustainable fuels can showcase their positive outcomes, influencing both end consumers and the industry.

Maritime certification differs from other fuel certifications due to the flexibility of ships regarding fuel specifications. As certification requirements evolve, ISCC is committed to developing solutions to expand sustainable fuel alternatives in the maritime industry.

Investing in research, infrastructure, regulatory frameworks, and stakeholder collaboration can help the maritime sector transition to a more sustainable future and contribute to global climate change efforts. It is crucial for shippers to track and verify their progress in these endeavours.

Sustainable marine fuels present a promising path to reducing maritime emissions and mitigating environmental impact. By embracing these advancements, the maritime industry can move towards a greener future.

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.

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