Marine e-fuel shortage expected until 2040s – MMMCZCS

“Shipowners should be wary of relying on e-fuels alone for decarbonization,” Maersk McKinney Moller Center for Zero Carbon Shipping (MMMCZCS) warns as it expects a renewable energy shortage to impede green fuels production by 2040.

PHOTO: 3D aerial view of Port of Amsterdam's Biopark, dedicated to the production of renewable fuels. Port of Amsterdam

“As the maritime sector has some of the highest abatement costs, it may not be willing or able to compete for high-cost renewable electricity, limiting e-fuel availability and hampering decarbonization efforts,” MMMCZCS has warned in a new report.

According to the industry non-profit, scarcity of copper, nickel and other rare earth elements are major barriers to scale up renewable energy production.

The report highlights that copper is a critical component of solar panels and wind turbines, two of the most prominent equipment to harness renewable energy. Nickel is also a crucial component of electrolysers, used in production of green hydrogen.

A similar warning was issued in January by the World Bank, which predicted that green energy would result in a 45% increase in copper demand by 2040, causing a supply shortage. In addition, the International Energy Agency expressed concerns that climate change could endanger mining assets in major producing countries like Chile, South Africa and Australia.

The report adds the maritime sector may need to explore use of "other fuel pathways during the transition period; depending on availability, these could include blue fuels, fuels produced using nuclear power, batteries, or biofuels.”

By Konica Bhatt

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