The World Economic Forum’s Annual Meeting 2025 (January 20-24) has come to a close in Davos, Switzerland, where key matters that impact the globe were discussed, including decarbonization.
Regarding energy transition, delegates observed a shifting energy industry landscape as they processed a series of announcements from President Trump. These included promises to boost U.S. energy output, accelerate LNG projects, and pressure the EU with tariff threats if the bloc didn’t increase its gas purchases. Trump also suspended new federal offshore wind leasing, declared the U.S. withdrawal from the Paris Climate Agreement, and urged Saudi Arabia and OPEC to lower oil prices.
While Washington’s exit from the climate accord is not expected to significantly alter the momentum of the global energy transition—largely driven by China and Europe—executives in Davos emphasized the need for Europe to speed up deregulation in order to incentivize investments and maintain its competitiveness, Reuters reports.
Key takeaways from Davos 2025 include:
- Optimism about the U.S. economy, but Europe faces challenges.
- The shift in focus from conflict to diplomacy, especially regarding the Middle East.
- Strong emphasis on emerging technologies like AI for climate action and healthcare.
- Continued commitment to gender parity.
- Debate on how Donald Trump’s return to office could reshape global policies.
Furthermore, as part of the World Economic Forum Annual Meeting, WEF put under the microscope how scalable maritime green fuels will help shipping reach net zero by 2050. WEF’s analysis is as follows:
Green methanol or blue/green ammonia
One promising substitute for fossil-based maritime fuels is green methanol. Methanol is currently already being produced on a large scale; however, it relies on fossil fuels and emits significant carbon back into the atmosphere. There are two primary pathways for producing green methanol:
1. Biomass-derived methanol: In this process, methanol is synthesized from biomass feedstocks such as agricultural residues, energy crops, or municipal solid waste. The biomass is gasified to produce syngas (a mixture of carbon monoxide and hydrogen), which is then catalytically converted into methanol.
2. Carbon dioxide (CO2) and green hydrogen: This process combines captured CO2 (from industrial sources or directly from the air) with green hydrogen produced via electrolysis using renewable electricity. The CO2 and green hydrogen are catalytically converted into methanol.
The second method has the additional benefit of capturing CO2 from the atmosphere, but it poses significant hurdles. For one, CO2 is highly unstable, and electrolyzing it with green hydrogen generates an excessive amount of water, which is detrimental to the process.
Another promising alternative to fossil-based maritime fuels are blue and green ammonia. Green ammonia is produced by combining green hydrogen with nitrogen from the air, resulting in an effectively carbon-free fuel. Blue ammonia, on the other hand, is synthesized from natural gas, with the associated carbon dioxide captured and stored or utilized, thus hugely reducing yet not completely eliminating carbon emissions.
Both green and blue ammonia possess higher energy density than conventional fuels, making them appealing for long-distance shipping. However, they face challenges such as the need for specialized infrastructure and the relatively early stage of development for green ammonia production and use in maritime applications.
Catalyst technologies for green fuels
It is crucial to optimize and stabilize the complex and currently very costly processes to produce either green methanol or blue/green ammonia if either is to be successfully scaled. One method of doing this is through the use of smart catalysts.
Beyond production optimization, to achieve widespread adoption of either green methanol and green/blue ammonia in the maritime sector, several obstacles must be addressed, including substantial investments in production facilities, distribution infrastructure, and retrofitting or constructing new vessels. Clear and consistent regulatory frameworks, collaboration across the value chain, and public awareness and acceptance are also crucial.
If green methanol and green/blue ammonia are successfully scaled and adopted in the maritime sector, the world could witness a significant reduction in greenhouse gas emissions from shipping activities, contributing to mitigating the impacts of climate change and paving the way for a more sustainable future.
The development and adoption of these fuels could drive innovation, create new economic opportunities, and foster collaboration across industries and nations, enabling the maritime sector to play a vital role in achieving the global goal of net-zero emissions, WEF concludes.
