ClassNK has released the “ClassNK Alternative Fuels Insight” report, which summarizes the characteristics and latest trends of alternative fuels to support future fuel selection.
As explained, amidst the pressing need for society-wide reduction of GHG emissions, regulations aimed at further promoting GHG emission reductions in international shipping are being introduced. This heralds the arrival of an era where GHG emissions from ships will incur costs.
In such a situation, for reducing GHG emissions from ships, alongside energy efficiency improvements, the adoption of alternative fuels with lower environmental impacts will become essential in the future. However, given the wide range of alternative fuels available for ships, it is necessary to understand not only the technical aspects but also the trends, including fuel availability and cost forecasts, to make appropriate fuel selections, ClassNK notes.
Key takeaways
- The main costs associated with the adoption of alternative fuel ships are shipbuilding costs, fuel costs, and regulatory costs
- Regulatory costs to comply with IMO and EU regulations depend on the GHG emissions resulting from fuel use. To understand regulatory costs, it’s necessary to grasp each ship’s GHG emissions, including the potential for reduction through fuel transition.
- It’s worth noting that EU regulations (EU-ETS for Shipping and FuelEU Maritime) target GHG emissions in EU-related voyages, while IMO regulations (mid-term measures) may cover GHG emissions in all voyages. Consequently, the regulatory cost burden may be relatively higher, requiring attention.
The “ClassNK Alternative Fuels Insight” offers a detailed look at regulatory frameworks, particularly focusing on GHG-related regulations set forth by the IMO and EU. These regulations are anticipated to wield significant influence over the future trajectory of maritime transport.
Furthermore, it provides an overview of adoption trends in alternative fuels, highlighting their increasing utilization across diverse ship types and sizes. This section offers valuable insights into the evolving landscape of maritime fuel choices.
The report also outlines the distinct characteristics of each alternative fuel option while also addressing factors such as costs, supply prospects, and other relevant considerations. Finally, it elucidates the intricacies of costs associated with fuel transitions.
