The Week in Alternative Fuels 29 September 2023
Swift policy action, more investments in green fuels and a ramp-up of bunker infrastructure are key ingredients to an accelerated adoption of low- and zero-emission fuels.
PHOTO: Aerial view of Gibraltar city and Bay of Gibraltar. Getty Images
The shipping sector needs broad and readily available access to cleaner fuels as it prepares for an imminent green transition. It can be achieved through policy action to stimulate demand and supply, greater investments to scale up green marine fuel production and development of bunker infrastructure for these fuels. These points were reflected in this week's top stories.
The International Energy Agency (IEA) recommended aggressive policy measures and timely implementation of policies to boost green hydrogen production. This will spur demand for hydrogen and hydrogen-derived fuels like e-methanol and green ammonia, the IEA said. It urged governments to extend financial assistance to fuel producers hit by inflation.
The UN Conference on Trade and Development (UNCTAD) noted that fully decarbonising the world’s fleets will require annual investments of $8-28 billion. UNCTAD's latest report underscored the need for economic measures like carbon taxes and emissions trading programmes to promote low- and zero-emission fuels and infrastructure, and alleviate the financial burden on low-income nations.
Environmental non-profit Transport & Environment (T&E) and shipping association Danish Shipping asked EU regulators to prioritise investments in green marine fuels. Danish Shipping's chairman Torben Carlsen said that the EU's Fit for 55 package must focus on green fuel pricing. T&E’s executive director William Toots called for clear guidelines on e-fuel adoption in the 2026-2027 review of the FuelEU Maritime regulation.
Meanwhile, Japanese trading firm Itochu and bunker supplier Peninsula plan to establish ammonia bunkering in Algeciras to cater to future ammonia demand around the Gibraltar Strait. Procuring ammonia and developing bunkering infrastructure are crucial steps to increase ammonia uptake from ships, Itochu said.
Addressing "greenwashing" in the shipping industry is a vital step to ensure that real progress can be made towards the green transition. Greenwashing occurs when companies make unsubstantiated claims about reducing their carbon footprints, without taking any concrete measures to do so. London-based non-profit Opportunity Green made official complaints to the UK’s Advertising Standards Authority (ASA) against MSC Cruises, Carnival Cruise Line, Costa Cruises and Princess Cruises for greenwashing LNG and “trying to gaslight the public into believing that fossil LNG is a climate solution when it is not.”
By Konica Bhatt
Here is our selection of top five alternative fuels stories from this week:
Low-emission hydrogen growth held back by lack of policy support – IEA
Shipping sector’s decarbonisation by 2050 will come with a hefty price tag – UNCTAD
Maritime experts push EU to facilitate investments in green fuels
Itochu and Peninsula to develop ammonia bunkering in Spain
Opportunity Green challenges cruise ship industry’s LNG claims with UK advertising watchdog
