Transport & Environment (T&E) released their briefing on IMO and sustainable fuels criteria, particularly focusing on the production of electrolytic hydrogen-derived fuels.
Alternative marine fuels come with different well-to-wake (WtW) GHG footprint. Some renewable fuel pathways do have the potential to eventually reach that target, while others will always have substantial residual emissions in the production chain.
To provide certainty for renewable fuels that could theoretically deliver IMO Revised Strategy’s mid and long-term decarbonisation objectives while minimising the risks of stranded assets for the fuel and technology options that cannot – it is essential to introduce a robust GHG reduction criteria to the definition zero and near-zero emission fuels . T&E proposes the following transitional GHG reduction thresholds to qualify as such.
Sustainable fuels are electrolytic hydrogen-derived fuels that deliver:
- At least 90% WtW CO2e emissions reduction relative to the fossil fuel baseline from 2030 onwards, or a maximum of 9.4 g CO2e /MJ of energy GHG intensity.
- At least 95% WtW CO2e emissions reduction relative to the fossil fuel baseline from 2040 onwards, or a maximum of 4.7 g CO2e /MJ energy GHG intensity.
- 100% WtW CO2e emissions reduction from 2050 onwards.
Such a definition would ensure that only the fuels with long-term full decarbonisation potential, especially those derived from electricity, are promoted through the IMO GFS without prescribing the specific type of on-board conversion tech.
Sustainable fuels & renewables requirements
The production of electrolytic hydrogen-derived fuels requires a source of electricity that should be decarbonized and come in addition to the decarbonization requirements of the electricity grid. It is important to ensure the production of sustainable fuels does not rely on renewables that are already used to decarbonize the electricity consumption in other sectors of the economy.
Furthermore, should the production of sustainable electrolytic hydrogen fuels rely on electricity originating from the grid, this implies that the grid should be almost fully decarbonized in order to produce very low GHG intensity H2-derived fuels that could meet the suggested thresholds. In fact, grid-connected hydrogen-based e-fuel production would already require renewable and/or low-carbon (i.e., nuclear) electricity to make up over 90% of the power mix in order to meet the 70% GHG intensity-reduction threshold.
With a reduction threshold of 90%, this would necessitate the grid to be completely decarbonized, or for fuel production facilities to be directly connected to renewable power sources. In reality, this means that relying on electricity from the grid to produce e-fuels with strict sustainability requirements would not be feasible today in almost any country.
Furthermore, this means that using a 90% GHG reduction threshold would eliminate the risk of marine e-fuels production diverting green/clean electrons from decarbonizing the grid. In other words, a high threshold would ensure both sustainability and additionality under one single mechanism.
