Oceanly has conveyed a stern warning that the green fuels push may lead to increased global emissions as the race to decarbonize the industry focusses on alternative fuels such as hydrogen, ammonia, biofuels, and liquefied natural gas (LNG).
According to Oceanly, the key challenge in scaling green fuels is the high demand for renewable electricity, with current estimates suggesting that the shipping industry would need a substantial share of the world’s renewable electricity production, which is a target that seems unattainable in the short to medium term.
Frederik Lerche-Tornoe, General Manager at Oceanly stated that while alternative fuels are part of the future, current infrastructure and energy availability isn’t enough to support a full transition. Relying too heavily on green hydrogen, could strain global renewable energy resources given that only a fraction of today’s hydrogen production is classified as ‘green.’
There’s a vital need for balance. Focusing on immediate improvements in energy efficiency offers a more achievable path to reducing emissions now, especially as most vessels have yet to adopt energy-saving technologies, leaving the potential for progress.
…said Lerche-Tornoe.
Furthermore, Oceanly says that while there is an absolute understanding for the need for greener fuels, the need to address the current inefficiencies is equally as important, to ensure that shipping is ready for a future powered by renewables.
Oceanly supports that the focus should be on smarter practices and incremental improvements, until renewable technologies are more accessible, to counteract inefficiencies involved in producing and using green fuels. Also considering 80% energy loss from renewable electricity production via green hydrogen and e-fuels, to a ship’s propeller.
Moreover, Frederik Lerche-Tornoe explains that improving energy efficiency across the global fleet is the most important step to take in the short term, rather than immediately switching to green.
Clarkson Research (2023) also states that 75% of the world fleet has yet to install any energy-saving devices.
