Kiran Paul’s Post

💧Navigating the Future: Transitioning to Sustainable Fuels in Maritime Shipping ⚡Check out our first article of a new series about the developments of alternative fuels within maritime shipping: https://lnkd.in/eFRtAUtm Facing stringent regulations and new incentives from the Fit for 55, FuelEU and ETS, the maritime shipping sector is being forced to curb its greenhouse gas emissions, shifting away from the use of Heavy Fuel Oil (HFO), 🛢 in pursuit of environmental protection 🌳 Due to the vast scope of #alternative fuels within the maritime shipping industry, this article serves as an introduction to what will become a series of articles, 🔍 exploring in-depth the challenges of adopting alternative fuels such as ammonia, methanol, LNG and hydrogen. Thank you Alessandro Peretto for your contribution to this article. #maritime #shipping #fuelEU #ammonia #hydrogen #ports #alternativefuels #article

As the shipping industry navigates the transition to a sustainable future, a comparative analysis of alternative fuels highlights the complexities of decarbonization. LNG, while reducing sulfur and CO₂ emissions, remains problematic due to methane slip. Hydrogen and ammonia offer zero-carbon potential but face significant cost and infrastructure hurdles. Biofuels provide a renewable option but raise concerns over scalability and lifecycle emissions. For Pacific nations, the urgency is clear—solutions must be both just and equitable, ensuring that small island states are not left behind in the energy transition. The debate must move beyond technical feasibility to systemic change that prioritizes climate-vulnerable regions. Read more here:

Sustainable shipping: Navigating the waters toward net zero   How is the global shipping industry changing tack and setting a sustainable new course for a net-zero future? Which alternative fuels are emerging as the low-carbon favorites among shipowners – LNG, green methanol, ammonia, biofuels or even electricity? And to what extent will the European Union’s Emissions Trading System and its FuelEU Maritime legislation overlap with regulations introduced by the International Maritime Organization? The global shipping industry is estimated to consume about 270 million tonnes of fuel per year, emitting 850 million tonnes of CO2 or about 2% of greenhouse gas emissions worldwide. The IMO unveiled a new target last year for the shipping industry to reach net-zero emissions by or around 2050 – an ambitious goal, to say the least. Unsurprisingly, emissions were very much in focus at the 81st session of the IMO’s Marine Environment Protection Committee (MEPC81), held in March, although no concrete decisions were made. At the next session, however – MEPC82 in October – the IMO aims to reach consensus on economic and technical measures to reduce emissions. Options on the table will include operational efficiency improvements, vessel and technology upgrades, and a shift to low-carbon and renewable fuels. You’ve probably heard the old maritime adage “between the devil and the deep blue sea”, which refers to the dilemma of having to choose between two equally unappealing options. Those who join us later this week for the May edition of Rystad Talks Energy will hear that the options to choose from are decidedly more alluring when it comes to the shipping industry’s energy transition. Rystad Talks Energy on 30 May will focus on shipping and the potential for reducing the industry’s environmental footprint. We are truly honored to be joined by Torben Nørgaard, Chief Technology Officer for Energy & Fuels at the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping, who will share his perspectives on the path that lies ahead for the shipping industry in the context of the energy transition. 

SHIPPING DECARBONIZATION - MEPC 82 advances, difficulties and actions to be taken The 82nd session of the MEPC was held between 30 September and 4 October. Among other environmental issues, the MEPC is responsible for mitigating GHG emissions. This session was preceded by a week of debates within the intersectional group for reducing these emissions. The main decisions concerned: the assessment of emissions; the charging of the most emissive ships; the life cycle of fuels; the acceptance of the study on potential impacts on States resulting from the measures, carried out by UNCTAD; a certification scheme with international acceptance to attest to compliance with environmental standards; applying the measures to ships with an GT equal to or greater than 400 or 5000; and instructions for the fifth IMO GHG STUDY, in order to find out the current state of total emissions and, using 2008 as a basis, to check how far the fleet is from meeting the targets set out in the IMO GHG 2023 STRATEGY [MEPC 377(80)]. The advances made were to migrate the emissions metric from the GFS (total annual emissions) to the GFI (emissions/energy generated), with the need to create a database and a GFI target to which each ship will compare its attained GFI, the preferential option for a flexible economic element, the consensus to apply the measures initially to ships with an GT of 5,000 or more, leaving those with 400GT for a later stage, and the finalisation of the instructions for the fifth IMO GHG STUDY. The use of the UNCTAD study on the issue of potential impacts generated controversy among the representatives of the Member States, which meant that it was not accepted by some countries, including Brazil, due to the alleged lack of academic rigour in the analysis, and the proposal to assess food security emerged as an alternative or complement to the necessary impact assessment before adopting the measures. The certification scheme and the finalisation of the life cycle guidelines still merit further research. Finally, the recognition of biofuels as contributors to the emissions mitigation strategy and the consensus that the operational energy efficiency approach, through the Carbon Intensity Indicator (CII), will play an important role in the complementary assessment to the awarding/penalisation of vessels. Given the complexity inherent in the IMO's mission to decarbonise a sector that transports more than 80% of the world's cargo, which has many specificities in terms of types/sizes of ships, cargoes transported and different routes, we can say that MEPC 82 has fulfilled its task of taking forward the definition of the basket of measures that aims to deliver net zero GHG emissions from ships by 2050. Capt(rtd) Fernando

The #MiddleEast champions #sustainable #shipping as Methanol Institute joins IMO. What is happening with this #fuel in the region? Are #ports looking at supplying multiple types of fuels for ships? Find out more here: https://lnkd.in/drMdRTTG

The maritime transport sector, handling 90% of global trade, is working to become more sustainable. Currently responsible for 3% of global greenhouse gas (GHG) emissions, this could rise to 10-11% by 2050. In my latest blog, I look into: ▶️ Why shipping, while generally more environmentally friendly than air or road transport, still needs to become greener ▶️ Alternative fuels like LNG, biofuels, and ammonia ▶️ Energy efficiency through new designs and wind-assisted propulsion ▶️ Digital tools for better route planning and efficiency Read more by visiting the link in the SCM Globe post. #supplychain #logistics #Sustainability #MaritimeTransport #GreenShipping #Innovation

ENVIRONMENTAL: World Shipping Council updates #netzero regulatory measure to bridge fuel price gaps Following consultation with #IMO member nations and other stakeholders, the World Shipping Council (WSC) has further developed the Green Balance Mechanism, a regulatory measure designed to ensure that #shipping meets its net-zero goal by 2050 in an efficient, just and equitable way. According to the organization, over 60% of new #container and #vehicle carrier vessels for delivery by 2030 will be ready to use the greenest fuels. However, these fuels are scarce and several times more expensive than fossil fuels, the #WSC says. Its #GreenBalanceMechanism aims to bridge the price gap, making green fuels competitive with fossil fuels.  The Green Balance Mechanism has been designed to encourage immediate investment in the greenest fuels and #technologies, jump-starting the energy transition in a cost-efficient manner. It provides incentives for fuel producers and shipowners to invest in advanced technologies now, avoiding costly incremental changes. Joe Kramek, president and CEO of the WSC, commented, "For shipping’s energy transition to take place, green #maritimefuels must be available at scale, requiring billion-dollar investments by energy producers. For these investments to occur, the IMO must adopt regulations that not only increase #fossilfuel prices but also make green fuels a viable alternative. Only then will there be a strong enough market for green maritime fuels to stimulate the necessary levels of investment in green fuel production and renewable energy." Read more here: https://lnkd.in/eWjUGkkc #Marine #Maritime #Electrification #Decarbonization #Sustainability #Environment #Technology #Transportation #EHMExpo #EHMXNA #ukimediaevents

REGULATION: International Chamber of Shipping presents revised proposal for #emissions fee and green fuel pricing incentivization Working with the governments of #Bahamas and #Liberia, the International Chamber of Shipping (#S) has presented a comprehensive new proposal to ensure delivery of the UN International Maritime Organization’s (IMO) ambitious target to achieve #netzero greenhouse gas (GHG) emissions from international shipping by or around 2050. Guy Platten, ICS secretary general, commented, “It is time for governments ‘bite the bullet’. Unless a distinct GHG pricing mechanism and feebate program are included in the IMO regulations adopted next year, we genuinely fear that shipping’s transition to net zero by or around 2050 will be unlikely to succeed.” Read more here: https://lnkd.in/erWShY9D #Marine #Maritime #Electrification #Decarbonization #Sustainability #Environment #Technology #Transportation #EHMExpo #EHMXNA #ukimediaevents

The International Chamber of Shipping (ICS) has submitted a proposal for a maritime GHG emissions pricing mechanism, supported by major shipping nations such as Greece, Japan, Korea, the United Kingdom, and other countries and regions, including all EU states and the European Commission. Once approved, this pricing mechanism will take effect globally in early 2027.   The joint submission outlines a regulatory framework for amendments to the IMO MARPOL Convention, which would require all shipping companies operating on international voyages to contribute per tonne of CO2e emitted to a new “IMO GHG Strategy Implementation Fund.”   According to ICS, the primary objective of this GHG charge is to reduce the cost gap between zero and near-zero GHG emission (ZNZ) fuels (such as green methanol) and conventional marine fuels, thereby incentivizing the accelerated adoption of green energy sources. Revenue generated will be allocated to reward the production and use of ZNZ fuels while providing billions of US dollars annually to support maritime GHG reduction efforts in developing countries.   We have been promoting the use of B24 biofuels since 2023 and are expanding our sustainanle fuel options. This proposal will undoubtedly support the shipping industry in our net-zero journey.

The maritime sector is undergoing profound changes as global environmental regulations reshape the landscape. The report “Economic Value of Methanol for Shipping” provides crucial insights into the impact of FuelEU Maritime and the EU ETS on competitiveness and sustainability in international trade, with significant implications for Brazil. Key Points Regulations and Non-Compliance Costs - FuelEU Maritime and the EU ETS impose substantial penalties for the use of fossil fuels like VLSFO, with costs rising from €264/tonne in 2025 to €2,339/tonne by 2050. Economic Viability of Sustainable Methanol - Bio-methanol and e-methanol are viable alternatives, with maximum prices of €1,193/tonne (bio-methanol) and €2,238/tonne (e-methanol, 2025-2033). E-methanol costs decrease to €1,325/tonne after 2034 as regulatory incentives shift. Infrastructure and Market Incentives - Transitioning to sustainable fuels requires adapted port infrastructure. Investments in terminals, storage systems, and technological integration are critical to ensuring methanol availability. Methanol Compared to Other Fuels - Methanol stands out against options like ammonia and LNG for its economic feasibility and significant reductions in greenhouse gas (GHG) emissions. Impact on Brazilian Exports Opportunities - Natural Advantages: Brazil’s abundant biomass, renewable energy resources (wind and solar), and expertise in biofuels position it as a potential global leader in bio and e-methanol production. - Strategic Ports: Infrastructure hubs like Santos, Suape, and Pecém could become key centres for sustainable fuel supply and exports. - Attracting Investment: Europe’s demand for clean fuels offers opportunities to attract foreign investment and modernise Brazil’s supply chain. Challenges - Limited Infrastructure: Brazilian ports currently lack sufficient capacity for methanol supply. The absence of dedicated terminals and robust logistics systems is a significant barrier. - Rising Logistics Costs: Exporters relying on non-compliant vessels will face increasing costs to access European markets, undermining competitiveness in the short term. The report outlines a clear path: Brazil has a unique opportunity to lead the global energy transition in maritime transport. However, this requires: - Effective public policies to encourage investment in port infrastructure and clean fuel production; - Strategic partnerships between government and private sector to promote technological modernisation; - A focus on competitiveness to align Brazilian exports with global environmental standards. I strongly recommend reading the report “Economic Value of Methanol for Shipping” to understand how these changes will shape the future of maritime transport and Brazilian exports. Now is the time for strategic action to ensure Brazil emerges as a key player in the global energy transition and sustainable trade. #EnergyTransition #Sustainability #PortInfrastructure #InternationalTrade #Brazil