The container shipping industry is a major contributor to global carbon emissions, with diesel-powered freighter ships responsible for transporting approximately 90% of global cargo. This reliance on carbon-emitting vessels underscores the international economy’s dependence on this mode of transportation. Furthermore, most container ships utilize heavy bunker fuel, which exacerbates carbon emissions. Annually, the sector consumes over 300 million tonnes of fossil fuel.
Moreover, this industry is also a significant contributor to environmental pollution, particularly through the emission of greenhouse gases (GHGs) and other pollutants. As the world intensifies its efforts to combat climate change and reduce carbon footprints, the shipping industry faces increasing pressure to adopt sustainable practices. One of the most promising avenues for achieving sustainability in this sector is the development and adoption of alternative fuels. This blog explores the emerging alternative fuels that hold potential for transforming the container shipping industry.
Present state of the decarbonization efforts of the container shipping industry
The container shipping industry accounts for 3% of total global carbon emissions, a figure projected to rise dramatically to 17% by 2050. This alarming trend has made sustainability a top priority for the sea freight shipping sector. The International Maritime Organization (IMO) has previously imposed mandatory limits on emissions of gases like sulfur oxides and nitrogen oxides. Three years ago, the IMO implemented a new regulation that reduced the permissible sulfur content in fuel from 3.5% to 0.5%. In response, several carriers are proactively transitioning to more environmentally friendly options to enhance the sustainability of shipping operations. Using cleaner, though more expensive, fuels is a key measure driving these sustainability efforts.
Major players in the shipping sector universally agree that the path to sustainability lies in reducing reliance on traditional heavy fuel oil and embracing greener alternatives. This shift is essential for minimizing the environmental impact of shipping and ensuring the industry’s long-term viability.
The shipping industry has only recently begun its journey toward decarbonization in response to the escalating climate crisis. In 2018, the International Maritime Organization’s member states reached a significant agreement to reduce greenhouse gas emissions by half by 2050 and to phase out carbon emissions entirely by the end of the century. Traditionally, the container shipping industry has relied on heavy fuel oil (HFO), a cheap by-product of petroleum crude that provides considerable mileage for ships. However, HFO emissions are extremely harmful to the environment. The full extent of their toxicity becomes evident when vessels accumulate at ports, highlighting the urgent need for cleaner alternatives.
Emerging alternative fuels for a greener ocean freight shipping operations
Liquefied Natural Gas (LNG)
Liquefied Natural Gas (LNG) is currently the most advanced alternative fuel in the shipping industry. LNG emits significantly lower levels of CO2, sulfur oxides (SOx), and nitrogen oxides (NOx) compared to traditional heavy fuel oil (HFO). While LNG is not entirely carbon-free, it offers an immediate reduction in harmful emissions, making it a transitional fuel towards greener solutions. Several shipping companies have already begun retrofitting their vessels to operate on LNG, and new LNG-powered ships are being built.
Hydrogen
Hydrogen is poised to emerge as a major shipping fuel in the coming years, attracting significant investments from multinationals in the development of hydrogen fuel cells. It is heralded as a key contributor to the decarbonization endeavors of various sectors, including shipping. What sets hydrogen apart is its production process, particularly the utilization of renewable electricity, rendering fuel cells a zero-emission solution. Presently, this technology is undergoing testing, primarily with hydrogen-powered small boats and ferries.
However, hydrogen fuel cells present certain challenges. The production cost is substantial, and they demand a considerable amount of electricity, often sourced from conventional fuels. Additionally, storage and logistical considerations hinder widespread adoption. While many countries are currently producing hydrogen for various industries, scaling up manufacturing and transitioning to renewable energy sources are imperative.
On a positive note, the simplicity of hydrogen production technology facilitates global deployment of production facilities. Even developing nations reliant on fossil fuel imports stand to benefit, potentially producing hydrogen domestically to fuel their vessels. Despite its costliness, hydrogen stands out as perhaps the most promising alternative fuel option with lasting implications for the international shipping sector. Major players like Royal Dutch Shell are aligning their strategies with shipping decarbonization goals, further driving investment in hydrogen fuel cells.
Wind energy
Until recently, hydrogen-based fuel garnered much attention as a method for reducing carbon emissions. However, its high cost and complexity have posed significant challenges. In contrast, wind-powered ships present a promising solution with tangible benefits. This resurgence of interest in harnessing wind power harks back to ancient seafaring techniques and promises to revolutionize global freight transportation.
One notable endeavor is underway at Wallenius Marine AB, a Swedish firm developing a 200-meter-long wind-powered freight ship. This innovative vessel is poised to slash CO2 emissions by an impressive 90% compared to conventional diesel-powered counterparts.
Meanwhile, Econowind, in collaboration with Dutch shipping company Schram Shipping, is exploring Ventifoil technology to create wind-powered ships. Ventifoils, wing-shaped elements housed within 40-foot containers, generate substantial propelling force, leading to significant fuel savings and enhanced forward motion.
In a similar vein, French company Neoline is pioneering a 136-meter wind-powered ship capable of reducing carbon emissions by 90%. Led by a team of seasoned ro-ro ship captains, Neoline seeks to mitigate the environmental impact of container shipping by embracing wind propulsion. Their flagship project, the Neoliner, aims to showcase the cost-effectiveness of wind-powered shipping and ensure stable ocean freight rates, irrespective of fluctuating oil prices.
Methanol
Methanol is gaining attention as a clean-burning alternative fuel. It can be produced from natural gas, coal, biomass, or even renewable sources like wind and solar power. Methanol is liquid at ambient temperature, which makes it easier to handle and store compared to LNG. It produces fewer emissions than traditional marine fuels and is biodegradable, reducing the environmental impact of potential spills. The International Maritime Organization (IMO) has approved methanol as a marine fuel, and pilot projects are underway to test its feasibility on a larger scale.
Biofuels
Biofuels, derived from organic materials such as agricultural waste, algae, and even used cooking oil, offer another promising alternative. These fuels can be used in existing ship engines with little to no modification, providing a practical route to reduce GHG emissions. Biofuels are considered carbon-neutral because the CO2 they release when burned is offset by the CO2 absorbed during the growth of the organic matter from which they are produced. Ongoing research aims to improve the efficiency and scalability of biofuel production to make it a more viable option for the shipping industry.
Wrapping up
While these alternative fuels offer promising pathways to reduce the environmental impact of the container shipping industry, several challenges remain. The development of appropriate infrastructure, such as refueling stations and storage facilities, is critical. Additionally, the high initial costs of retrofitting ships or building new vessels compatible with alternative fuels can be a barrier to widespread adoption.