The Week in Alternative Fuels 27 October 2023
While fossil LNG is currently gaining momentum as an alternative bunker fuel, authorities are working to fast-track adoption of marine fuels with net-zero emissions potential.
PHOTO: Bunkering of CMA CGM's LNG-powered vessel in the Port of Rotterdam. CMA CGM
The International Energy Agency (IEA) forecasts the share of fossil fuels in global energy supply to decline from 80% currently to 73% by 2030. In its latest World Energy Outlook, the energy watchdog recommends reducing methane emissions from fossil fuel operations by 75% and moving towards a gradual phase-out of fossil fuels to meet the 1.5°C Paris Agreement goal.
But ships are increasingly being powered by fossil LNG around the world, suggesting that reducing our fossil fuel addiction - and resultant methane emissions - is no simple feat.
Rotterdam’s LNG bunker sales increased for the third consecutive quarter and recorded their highest level since the third quarter of 2021. Its LNG sales touched 204,000 cbm (83,000 mt) in the third quarter of this year, up from 180,000 cbm (73,000 mt) in the previous quarter. This is a 15% rise over the past quarter.
In a new report, the International Gas Union, Snam and Rystad Energy predict that LNG bunker demand will only grow stronger in the near future due to evolving regulations and maturing technology. The report argues that LNG-ready ships account for more than half of current shipping orders. LNG is considered a tried and tested alternative to oil-based marine fuels. It also asserts that "technological, infrastructure, economic, and regulatory issues" could impede the widespread use of carbon-neutral fuels like hydrogen, green ammonia or e-methanol.
Despite the naysayers, however, some pockets of sunshine were seen as authorities moved forward to expedite manufacturing and adoption of net-zero fuels and technologies.
The European Parliament's Industry, Research and Energy (ITRE) committee will include sustainable alternative marine fuel technologies in its definition of strategic technologies under the Net-Zero Industrial Act. The act aims to ensure that the EU's manufacturing capacity for strategic net-zero technologies reaches 40% of its annual deployment needs by 2030. The amended proposal, led by Member of the European Parliament Christian Ehler, classifies several strategic net-zero technologies such as electrolysers and fuel cells, sustainable biogas/biomethane, carbon capture and storage (CCS) and renewable hydrogen.
Also in the past week, the Energy Market Authority (EMA) and Maritime and Port Authority of Singapore (MPA) shortlisted six consortia to develop project ideas for green ammonia bunkering on Jurong Island. By the end of the year, the MPA will ask companies to submit their proposals to bunker ammonia with a capacity of at least 100,000 mt/year, starting with shore-to-ship bunkering and eventually moving to ship-to-ship bunkering.
By Konica Bhatt
Here is our selection of top five alternative fuels stories from this week:
IEA sees share of fossil fuels in global energy mix to reduce by 2030
Rotterdam's LNG bunker sales surged in Q3
Regulatory changes, technological maturity support LNG bunkering demand
EU Parliament committee approves amendments to Net-Zero Industry Act
