For the sixth consecutive year, Lighthouse Chartering held its maritime transport seminar, where experts from the international consultancy Drewry shared their perspectives on the dry bulk shipping market in the West Coast South America region and globally.

The webinar, organized by MundoMaritimo, also analyzed how new regulations would impact the shipping market.

The online event, which had over 400 registrations from 33 countries, was moderated by Christian Kassu, Partner and General Manager at Lighthouse Chartering, and featured presentations by Navin Kumar, Director of Maritime Research Drewry, and Rahul Sharan, Senior Manager of Bulk Research Drewry.

This first article will explore the main points presented by Kumar on the advantages and disadvantages of alternative fuels in the maritime industry within the framework of the transition to the net-zero era.

According to the expert, several factors are pushing the industry towards adopting green fuels aligned with the IMO's 2050 goals.

Firstly, regulatory pressures from the European Union and the International Maritime Organization; secondly, demands from financial entities, which have adopted the "Poseidon Principles," granting credits only to companies aligned with sustainable goals; and lastly, the requirement from end customers for products that do not contribute to the carbon footprint.

"For maritime transport to achieve the 2050 goals, a combination of factors is required, including the use of alternative fuels, the intervention of new technologies, and propulsion systems that are more energy-efficient," says Kumar.

Currently, there are three categories of fuels in the market. Gray fuels produce emissions that are not captured; Blue fuels produce carbon emissions but are captured; and Green fuels do not generate carbon emissions.

"Currently, only 1% of the container ship fleet runs on alternative fuels. This is because ships need to adapt to use them. However, the scenario changes when we look at the order book, where 1/4 of the ships to be built are designed to accommodate these fuels," explains Kumar.

For shipowners, the main options for alternative fuels are LNG, ammonia, methanol, and biofuels. But what are the advantages and disadvantages of each?

LNG

One of its main advantages is that there are already around 200 ports worldwide with infrastructure for LNG-powered vessels. According to the expert, at least 21 ships are operating with this fuel, and there are construction orders for 11 more.

While it has a lower environmental impact than traditional fuels and is considered an alternative, it is still a fossil fuel, emitting large amounts of greenhouse gases not only through CO2 emissions but also through methane leaks, a gas capable of producing a greater greenhouse effect than CO2, an aspect that the industry is working hard to address.

Ammonia

Its main advantage is that it does not emit carbon and requires less space than hydrogen fuels. For this reason, it is considered one of the main long-term fuels.

Ammonia engines are still under development, but a significant boost is expected by 2024. However, it emits nitrogen oxide, a greenhouse gas 300 times more potent than CO2. In addition, any ammonia spill is extremely toxic to both humans and the environment.

Another disadvantage is that it is a fuel in demand by multiple sectors, so its supply is limited.

Methanol

Methanol is becoming a popular alternative fuel due to its low emissions and easy handling and production. Additionally, most existing ships have the ability to use it with minimal modifications to their engines.

It is an ideal alternative fuel, according to Kumar. However, its production capacity is a disadvantage. Supply is limited, and its use is a priority for other industries.

On the other hand, it is extremely toxic to marine life in the event of spills.

Biofuels

Because it is made from vegetable and animal oil or their waste, it is very environmentally friendly and can be used without altering ship engines. 

Also, it does not increase net carbon emissions to the atmosphere since the carbon it releases is offset by the carbon captured during its production. "They are excellent fuel for the short and medium term. However, large-scale production is complex, and the existing infrastructure for its use is minimal, so I doubt it can be considered a fuel of the future," says Kumar.

Regardless of the type of fuel, Kumar explains that it is necessary to consider several factors, including infrastructure availability and production capacity; storage logistics; ship energy use and flexibility to adapt to existing engines; worker safety when handling them; the gases emitted; and regulations and certifications.

"In the next four or five years, we will see a paradigm shift in all areas. In the vision of shipowners, those investing in the industry, and end customers. This pressure towards the net-zero era is very positive and will allow us to achieve the 2050 goals," concludes Kumar.

By MundoMaritimo