During the 2023 SAFETY4SEA Singapore Forum, ShuYong Koh, Global Sustainability Director, ABS, presented decarbonization and sustainability insights in the maritime industry, saying that the green transition in shipping is increasing with various challenges based on the current regulations towards envisioning roadmap to achieve 2030 to 2050 sustainability goals.
GHG strategy was introduced in 2018 with two short term measures, namely, EEXI and CII. In July 2023. a revised strategy was adopted which introduced more stringent targets in an effort to accelerate the decarbonization efforts of the industry with the aim to reach “net zero” by or around 2050.
The initial targeted short-term measures from the strategy were implemented under MARPOL at the start of 2023. Where EEXI provides a one time certification of the energy efficiency of a ship’s machinery and its intended operating profiles while the CII provides an on-going annual certification and grading that indicates a vessel’s operational efficiency.
But since the adoption of the initial IMO strategy, there has been a continuing assessment on emerging technologies and the availability of alternative fuels to remain current with the options that could support the decarbonization in shipping.
The revised strategy is a comprehensive work package consisting of targets, workplans, reviews and impact studies all aimed at achieving decarbonization by or around 2050. The GHG reduction target sets levels of ambitions for overall emissions and carbon intensity and they set indicative checkpoints along the way.
Achieving these targets will require a basket of mid-term measures to be developed to steer the maritime industry towards full decarbonization by 2050 with a balance of proposed measures right.
Market Outlook: Alternative Fuels Update
As the global energy demands continue to increase with recent geopolitical events, there is a growing list of fuels being added to the mix for the demand. Traditional energy sources, such as oil and coal, have typically been the staple. However, there is a recent emerging trend of gradual replacement with alternative fuels.
Currently, the shipping industry’s decarbonization journey is accelerating its pace. Investment in LNG, PLG and methanol fueled vessels continue to grow, and the next topic of discussion will be what alternate fuels producers can provide at affordable prices.
In the latest ABS outlook publication, ABS re-examined the supply and demand data for alternative fuels and updated the future fuel mix to reflect the market information with base case scenario on some key regions. i.e. Americans and Europe, China and northeast Asia, Africa, middle East, South and southeast Asia.
In addition, looking at the effect of the 2050 net-zero target to the projected fuel mixed based on the recent strategy, the scenarios for global energy consumption are translated into global fuel consumption by ships with a translation of order book demands based on the types of vessels adopting alternative fuels.
Does the industry need to fast forward our fleet renewal by 5 years?
- The implementation of the IMO GHG reduction strategy started in 2012 with the introduction of EEDI.
- Until 2030, when the older / pre-EEDI tonnage will be reaching the end of economic life, the interim checkpoints remain aligned with the original strategy. Compliance with smaller scale retrofits of EET and adoption of drop in fuels will allow older vessels to reach the end of life.
- Beyond 2030, the decarbonization targets will require adoption of alternative fuels, a swift that we already notice at the current orderbook, to future proof the fleet.
- Bringing forward the target to reach net-zero emissions by 2050 will mostly affect the current orderbook, while the current fleet will be able to adapt and meet the interim targets.
Market Outlook: New Technologies.
- Maritime industry is undergoing a technological revolution driven by advancements in clean-energy technology, digitalization, and applied research. These developments are propelling the sector towards a more sustainable and efficient future, fostering reduced emission, enhanced operational capabilities and improved collaboration across the maritime eco-system.
- What are shown here are some of the innovation technologies viabilities in the market.
- As technology continues to evolve, the maritime industry is poised to embrace even more innovative solutions to address environmental concerns and meet the increasing demand of a globalized world.
- The decarbonization of shipping is complex with unique challenges to navigate. An area of significant advancement is the clean-energy transition that associated technologies where solutions such as carbon capture, electrification, alternative fuels, and alternative energy have gained prominence.
Explore more by watching his video presentation here below
The views presented are only those of the author and do not necessarily reflect those of SAFETY4SEA and are for information sharing and discussion purposes only.
Above article is a transcript from ShuYong’s Koh presentation during the 2023 SAFETY4SEA Singapore Forum with minor edits for clarification purposes.
