A recent report by UMAS and Arup underscores the UK’s potential to lead in global shipping decarbonization.
The report emphasizes the need for the UK to invest in infrastructure for zero-emission fuel production and supply chains, aligning with the IMO’s goals. However, stakeholders currently lack confidence due to uncertainties surrounding demand, scalability, and cost-effectiveness of zero-emission fuels.
The study focuses on the Northeast and Solent regions, identifying opportunities to decarbonize shipping operations. Leveraging tools like ‘FUSE’ and expertise in zero-emission fuel production, the report suggests that the UK can become an early adopter in this space. By decarbonizing just a fraction of regional energy demands, significant progress towards sustainability can be achieved.
The UK has a real opportunity to become an early mover in shipping’s transition to zero emission fuels. As the research has highlighted, making small, smart changes to our existing fleet will enable the UK to align with the most ambitious international shipping decarbonisation trajectories and showcase the UK as a leader in taking real action in this area
… said Chris ThorneDirector of Strategy and Operations, UMAS
Key findings in the report
- The fossil bunker fuel market is well-established and cost-optimized globally, while the zero GHG emission fuel supply chain is in its early stages and could take decades to develop.
- Short to mid-term solutions may differ from long-term cost-effective strategies, necessitating a comprehensive approach considering technical, commercial, and regulatory factors.
- The Northeast of England and the Solent area demonstrate concentrated energy demand from established shipping routes, offering opportunities to establish fuel supply chains to meet industry targets by 2030.
- Supporting local production over imports could be advantageous due to challenges facing large production projects abroad, such as securing offtake agreements and increased investment risks.
- Reutilizing existing production and distribution infrastructure in the UK could present a time-limited opportunity for financially viable local production, potentially bridging the cost gap compared to large-scale production abroad.
UMAS and Arup also stress the importance of collaboration to accelerate decarbonization efforts, offering a framework for identifying and implementing solutions. They call on stakeholders to seize the opportunity to propel the UK towards zero-emission shipping, emphasizing the economic and environmental benefits of such a transition.
Our findings pave the way for a transformative shift in global zero-emission shipping. It is an exciting time for the sector, with the UK able to take a leading role in demonstrating how and where investment is required.
… commented Sally Prickett, Director, Arup
