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GCMD: Need to turn to other technologies until new fuels are available
The CEO of the Global Centre for Maritime Decarbonisation (GCMD), Professor Lynn Loo, acknowledges the difficulties of introducing new fuels in tramp shipping and the need to shift to different technologies to improve energy efficiency.
GCMD was launched in 2021 as a non-profit organisation to supports the decarbonisation of the maritime sector through pilots and trials. Their founding partners include BHP, BW Group, Eastern Pacific Shipping, Foundation Det Norske Veritas, Ocean Network Express and Seatrium.
Initially on small, pre-defined routes
The initial adoption of alternative fuels will likely occur on short, pre-defined routes where advanced planning is feasible. Spot or tramp and deep-sea shipping, which tankers and bulkers fall into, face greater challenges as they have less visibility on the ports where they will bunker.
The difficulty of introducing new fuels in tramp shipping is acknowledged by GCMD CEO Lynn Loo
“Given the uncertainties surrounding both the availability and cost of low-carbon fuels, the industry must also explore alternative measures, such as drop-in biofuels (can be blended with fossil fuels), onboard carbon capture and storage, and advanced energy efficiency technologies.” notes Loo.
“Shipping’s fuel transition will be messy and progress will not be in a straight line. To meet our industry’s decarbonisation goals, we need clearer regulations, stronger policies, more sustained investment, faster permitting, and more efficient buildouts,”Loo emphasises. “Every step forward, no matter how small, contributes to the end goal.”
Flexibility of containerships
The reason for our discussion was due to the recent Clarksons report, which found that the pace of shipbuilding with alternative fuels has declined. The reason is the drop in the number of containership orders.
It should be noted that in previous years multiple container ships were placed on order by liner companies.
Maritime sources tell Naftemporiki that major containership companies can confidently invest in the construction of dual-fuel or hybrid-fuel ships due to their fixed routes, provided they have a contract with a supplier (companies supplying hybrid fuel) to secure future fuel supply in sufficient quantities and at specific hubs.
“It will be a long time before we see large orders for such vessels in the tanker and bulk carrier sectors,they add.
A case in point is the Danish container shipping giant Maersk and the progress it has made in the commercial supply of low-carbon methanol.
Loo notes that in 2023, the Laura Maersk bunkered 1,000 and 300 tons of biomethanol in Ulsan, Korea, and Singapore, respectively. With this experience under their belts, Ulsan and Singapore bunkered 3,000 tons and 1,340 tons of biomethanol to Ane Maersk and Stena Prosperous, respectively, this spring. The Ane Maersk subsequently bunkered another 4,300 tons in Antwerp.
Recently, LNG seems to be regaining ground over methanol even amongst liners, as the falling natural gas prices have made it quite an attractive option again, while the more advanced supply network remains a constant advantage. Clarksons data showed a race between the two fuels in orders placed in the first half.
