Shipping Executives Predict that the Use of Alternative Marine Fuels Will Increase Beyond 2030

Shipping executives told the APPEC conference in Singapore on Tuesday that, unlike the current stop-start shift, the use of alternative fuels in shipping is expected to accelerate after 2030 as stricter pollution requirements take effect.

As shipping businesses contend with issues such as trade volatility and geopolitical instability, the take-off is anticipated to be modest this decade. However, gains are anticipated in the next ten years.

Maersk's Strategic Shift

Maersk Oil Trading CEO Emma Mazhari stated, “Between 2030 and 2040, I think this is where we're going to see the real kind of volume shift to low carbon fuels.”

According to Mazhari, regulations such as the European Emissions Trading Scheme and maritime fuel standards are the main forces behind the change. Moreover, Maersk is shifting its investments away from single-fuel ships towards dual-fuel vessels due to anticipated changes in the supply of low-carbon fuels in Europe.

This strategic pivot aims to ensure long-term investment recoupment by providing flexibility in fuel options.

Besides, the CEO of Mitsui O.S.K. Lines (MOL), the second-largest shipping firm in Japan, Takeshi Hashimoto, told the conference that shipping companies will prioritise cutting emissions over the next five to ten years by using “proven products” like methanol and LNG.

Additionally, he noted, MOL is actively investigating the use of wind energy to support ship propulsion systems.

The development of low-carbon marine fuels like green ammonia, green methanol, and biomethane will be essential for the sector in the long run, but shipping decarbonisation has been going through a “stop and go” phase right now, Hashimoto added.

Shipping Industry Dedication to Decarbonisation

As the shipping sector works to meet the U.N.'s International Maritime Organisation's carbon emission reduction targets, it has been investigating lower-carbon alternative fuels to lessen its dependency on oil.

Notably, the CEO of Tata NYK Shipping stated that decarbonisation must be a primary objective, notwithstanding geopolitical uncertainties.

Maritime Safety Courses in London focus on the development and implementation of alternative marine fuels such as hydrogen, ammonia, and biofuels. This study is conducted by industry bodies to analyse hazards, develop safe operational processes, and ensure compliance with the marine sector's stringent safety standards for crew, cargo, and environmental protection.

Furthermore, Amitabh Panda, managing director of Tata NYK

Shipping, a joint venture between Japan's NYK Line and India's Tata Steel, stated that “decarbonisation as a necessity and a strategy for shipowners will be there despite whatever we are hearing from the White House.”

However, he admitted that business decision-making is made more difficult by the changing geopolitical environment.

“We are not very sure when and how much to invest, so the capital allocation becomes an issue.”

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