Alternative Fuels

ABS research: Carbon capture, new bunker fuels and energy efficiency are the path to net zero

ABS’ latest research concluded that the industry will need to accelerate investment in carbon capture technology, energy efficiency technologies and new fuels to achieve net zero by 2050.

Published

2 years ago

September 13, 2023

Admin

Classification society ABS on Monday (11 September) released a report on its latest research into shipping’s progress on the green energy transition.

The report, Beyond the Horizon: View of the Emerging Value Chains, concluded that the industry will need to accelerate investment in carbon capture technology, energy efficiency technologies and new bunker fuels to achieve net zero by 2050.

Released at the ABS Sustainability Summit during London International Shipping Week, the report examines in depth the carbon, ammonia and hydrogen value chains.

“Our findings show there is a significant amount of work to be done between now and 2050 if we hope to hit net zero. But crucially, our research shows it can be done, and maps out a pathway for the industry to get there,” said Christopher J. Wiernicki, ABS Chairman and CEO.

“Simply put, for shipping’s CO2 emissions to reach net zero, we will need to harness the potential of energy efficiency improvement technologies to reduce aggregate fuel consumption by 15 percent on the existing fleet and newbuild vessels. At the same time, we will need carbon capture rolled out across much of the oil burning fleet, reducing onboard CO2 emissions by 70 percent. Those that do not or cannot adopt carbon capture will need to switch to e-diesel or zero-carbon biofuels.”

Vessels with conventional single-fuel engines will still be constructed until well into the next decade. As a result, widespread adoption of retrofitting of energy-saving and carbon capture technologies will be required for the shipping industry to meet its targets.

The report also considers the obstacles and opportunities for adoption of alternative marine fuels and the actions shipowners must take in order to secure their future fuel supply chain. Growing demand for higher volumes of synthetic and green bunkers will be matched by competition for these fuels by other industry sectors.

As a result, it will be essential that shipping companies demonstrate to bunker fuel producers that sufficient demand exists to justify investment in production, pooling their buying activity in order to secure sufficient volumes.

The research highlights how shipping will play a pivotal role in the global clean energy transition.

“As the marine industry looks ahead and dives deeper into the complexities of these three value chains, the ABS Outlook makes it clear that maritime is more than a spectator in the global green energy revolution. Instead, it serves as a critical facilitator and enabler. The transportation of carbon, ammonia and hydrogen as cargo highlights the industry’s significance in bridging the global energy landscape’s gaps between production, storage and consumption,” said Wiernicki.

The Outlook models scenarios for the impact of decarbonization of the global economy on seaborne trade and the potential for shifting patterns of trade to reshape the global fleet. This includes falls in the aggregate share of the oil and chemical tanker and dry bulk carrier sectors and a growth in the containership sector measured in gross tonnage terms.

The transition to low and ultimately net-zero carbon operations will require substantial investment that may change the dynamic of shipping’s commercial relationships. But in the longer term, shipping operations will benefit from reduced fuel use, lower emissions, higher asset values and simplified regulatory compliance.

Considering the characteristics of the alternative fuels being considered by the maritime industry, it is clear that safety procedures and protocols as well as seafarer training will also need to evolve, the report concludes.

Note: A copy of the ABS 2023 Outlook, Beyond the Horizon: View of the Emerging Value Chains, is available for download here.

Photo credit: ABS
Published: 13 September, 2023

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Environment

IMO Secretary-General: Net-Zero Framework sends clear demand signal to bunker fuel producers

New regulations will require investment for decarbonisation to take place, states Arsenio Dominguez.

Published

22 hours ago

June 17, 2025

Admin

Shipping gears up for massive investments in decarbonization 2 medium

The global shipping industry is preparing for a net-zero transformation that will have a sector-wide impact on everything from supply chains and business models, to ships, ports and the maritime workforce, said IMO Secretary-General Arsenio Dominguez.

IMO approved new regulations for net-zero marine fuels and emissions in April, set for adoption in October. Calls for investments in decarbonisation are getting louder.

“Regulations alone cannot do the job. We need technological development and we need alternative fuels… And that can only happen in one way – with investment,” he said, speaking at the Blue Economy Finance Forum in Monaco (8 June).

This includes investing in scaling up production of alternative bunker fuels in large enough quantities to replace the 350 million tonnes of fuel oil currently burned by ships each year.

Upgrading port infrastructure and bunker operations will also be required to safely provide clean energy for ships when they call at ports around the world.

“The liner industry has already invested USD 150 billion in decarbonisation. It is unprecedented for the transport sector,” said President of the World Shipping Council, Joe Kramek. “But we need the fuel supply… it’s a tremendous investment opportunity.”

The new set of regulations, known as the “IMO Net-Zero Framework”, takes a two- pronged approach: a global fuel standard that limits the greenhouse gas (GHG) fuel intensity of marine fuels, and a price placed on the GHG emissions from ships.

The regulations send a clear demand signal to fuel producers, while rewarding ‘first movers’ – shipping companies who take the risk to adopt low- and zero-emission solutions early, and who are then able to share their experiences and expertise with others.

The IMO Net-Zero Framework works alongside earlier measures adopted by IMO to enhance energy-efficient ship design, operational improvements and carbon intensity ratings. They will be reviewed every five years, with emission limits tightened over time.

Photo credit: International Maritime Organization
Published: 17 June 2025

Newbuilding

NYK Group’s first methanol-fuelled bulk carrier “Green Future” delivered

Vessel is the first bulk carrier in the NYK Group to be equipped with a dual-fuel engine that uses methanol and fuel oil.

Published

22 hours ago

June 17, 2025

Admin

NYK Group on 13 May received delivery of Green Future, the company’s first methanol dual-fuel bulk carrier, at the TSUNEISHI Factory of TSUNEISHI SHIPBUILDING Co., Ltd. where a naming and delivery ceremony was also held, it said on Thursday (14 June).

The vessel will be chartered by NYK Bulk & Projects Carriers Ltd., an NYK Group company, from KAMBARA KISEN Co., Ltd.

It is the first bulk carrier in the NYK Group to be equipped with a dual-fuel engine that uses methanol and fuel oil.

“Methanol has a lower environmental impact than fuel oil, and by using bio-methanol and e-methanol produced using hydrogen derived from renewable energy sources and recovered carbon dioxide, the vessel achieves significant reductions in greenhouse gas emissions,” it said.

Vessel Particulars
LOA: 199.99 m
Breadth: 32.25 m
Depth: 19.15 m
Deadweight: approx. 65,700 metric tons
Capacity: approx. 81,500 m³
Draft: 13.8 m

Photo credit: NYK Group
Published: 17 June 2025

Ammonia

Yara Clean Ammonia voices support for ammonia bunkering pilot

Pilot has generated crucial real-world data and best practices for future ammonia bunkering operations globally.

Published

23 hours ago

June 17, 2025

Admin

Yara Clean Ammonia (YCA), the world’s largest trader and distributor of ammonia, on Friday (13 June) announced its key role in a landmark maritime decarbonisation initiative led by the Global Centre for Maritime Decarbonisation (GCMD).

The successful completion of the first-ever ship-to-ship transfer (STS) of ammonia at anchorage in Western Australia marks a major milestone in paving the way for ammonia as a viable marine fuel, it said.

Under the supervision of the Pilbara Port Authority (PPA), the pilot took place within the anchorage area of Port Dampier, simulating real-world bunkering conditions and demonstrating that ammonia transfer can be executed safely and effectively offshore.

According to YCA, the trial builds on the insights from GCMD’s prior safety study in Singapore and confirms that, with the right controls in place, ammonia STS transfers at anchorage are both safe and scalable.

The pilot has also generated crucial real-world data and best practices for future ammonia bunkering operations globally.

“This successful trial is a pivotal step towards building trust in ammonia as a zero-to-near-zero emission (ZNZ) maritime fuel,” said Murali Srinivasan SVP Commercial in Yara Clean Ammonia.

“It’s the result of world-class collaboration and careful planning—and it shows that with the right safeguards, ammonia bunkering is not only feasible but practical.”

Photo credit: Yara Clean Ammonia
Published: 17 June 2025