Connect with us

Alternative Fuels

GAC: Does Sweden’s alternative fuel development risk worsening a maritime Catch-22?

GAC Sweden’s Nils Igelström says Sweden faces having a surplus of renewable fuel options with limited access to wider European market; collaboration and clarity is needed to prevent stalling in shipping’s energy transition.

Admin

Published

on

GAC: Does Sweden’s alternative fuel development risk worsening a maritime Catch-22?

Sweden leads Europe in developing alternative fuels, driven by its 2045 net-zero emissions target and the IMO’s 2050 decarbonisation goal, and it is now making bold advances in renewable fuel options for commercial shipping. 

It is also investing heavily in infrastructure to support the development of biofuels, liquefied biogas and natural gas, and synthetic fuels like eMethanol. Many of these projects, although relatively nascent, showcase the country’s bold vision to lead the alternative fuel development pack.

Groundbreaking

In May 2023, Sweden broke ground on the FlagshipONE facility in Örnsköldsvik, targeting annual production levels of 50,000 tonnes of carbon-neutral eMethanol by combining carbon dioxide and green hydrogen for commercial shipping.

In February 2024, Jämtkraft AB launched NorthStarH2, with the goal of producing up to 100,000 tonnes of eMethanol each year to support Sweden’s green electricity supply and maritime needs.

But the development of alternative fuels goes beyond eMethanol. In August 2024, ScanOcean partnered with Vegoil to introduce a marine fuel derived from hydrotreated vegetable oil produced in Sweden. The tanker vessel Key Fjord successfully took on that product as bunker fuel at the Port of Oskarshamn, marking a step towards making biofuels commercially viable for maritime use.

Such developments highlight Sweden’s leadership in the development of greener fuel options for maritime use. But supply issues could put the brakes on by limiting their market reach.

Bunker fuels supply

The risk of oversupply

Shipping faces a ‘Catch-22’ scenario with alternative fuels: low adoption limits the infrastructure development while companies delay investing in newbuilds or retrofits until fuel supply chains expand. 

This production-market access disconnect risks oversupply in Sweden’s alternative fuel market, restricting access to the wider European maritime sector.

Nils Igelström, Managing Director at GAC Sweden, highlighted the challenge of balancing production and demand for renewable marine fuels: “Sweden is producing some of the most advanced renewable marine fuels, but cargo owners are unwilling to pay higher freight costs. Without buyers, the environmental benefits remain unrealised, stalling progress towards decarbonisation.”

Despite interest from shipowners, low demand highlights the need for better market access. 

“Companies like Preem, lead the development of alternative fuels, but oversupply persists,” added Igelström. “With heavily investments in refineries and fuel development, these facilities will continue producing fuels regardless of current demand. However, the priority now is ensuring these fuels reach the market effectively.”

Nils Igelström Managing Director, GAC Sweden

Nils Igelström Managing Director, GAC Sweden

Beyond the Baltic

Supply chain bottlenecks of alternative fuels, including logistical challenges and limited port infrastructure in other parts of Europe, hinder the export of surplus alternative fuels and can lead to higher costs and regulatory complexities. This uneven distribution particularly affects vessels that do not have easy or regular access to the North and Baltic seas. 

“If a vessel calls at Gothenburg regularly, fuel supply isn’t an issue,” said Igelström. “But in areas lacking necessary infrastructure, accessing Sweden’s alternative fuel supplies is challenging. With availability limited to Sweden or Finland or Germany, shipping companies hesitate to invest in greener vessels without certainty of supply.” 

Igelström also emphasised the need to improve accessibility across Europe to encourage investments and support the maritime sector’s green transition. 

The cost factor

Logistical challenges raise costs, with bunkering accounting for up to 50% of a vessel’s daily operating costs. Greener alternatives, according to the World Economic Forum, can cost up to four times more than traditional heavy fuel oil. For an industry with tight margins and volatile freight rates, zero-emission shipping significantly increases the cost of goods. 

A study by Drewry estimated that switching to green methanol would increase fuel costs by 350%, equivalent to an additional US$1,000+ per 40 feet container shipped from Asia to Europe.

“There is a big price gap between renewables and fossil fuels. Exporting Sweden’s alternative fuels further increases costs, but that’s a necessary step to achieve shipping’s green potential,” Igelström said.

Collaboration and clarity

Shipping thrives on clarity, but gaps in regulatory goals, infrastructure, and environmental policies hinder the development of an effective green fuel supply chain.

“Shipping companies need certainty,” Igelström noted. “With tight margins, they can’t risk fuel unavailability, especially where delivery points are scarce. Collaboration across Europe is essential to build a uniform supply chain that ensures renewable-powered ships can operate globally. Policymakers, industry leaders, and international organisations must unite to create conditions for renewable fuels to succeed.”

Sweden is working with partners in Finland, Iceland and the Faroe Islands, leading the charge in devising a supply chain that can support the maritime sector’s access to green fuels. 

In May 2024, the Nordic Maritime Transport and Energy Research Programme launched the STORM project to address supply barriers, assess fuel suitability, and propose solutions to accelerate the green transition. Sweden’s leadership in this initiative highlights its commitment to not only fuel development, but also market accessibility. 

“Sweden is doing its part to drive shipping’s fuel transition through fuel development and regulatory frameworks. However, Europe must collaborate to efficiently distribute surplus renewable fuels across the continent,” Igelström concluded.

 

Photo credit: GAC Sweden
Published: 6 December, 2024

Continue Reading

Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

Admin

Published

on

By

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

Continue Reading

Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Admin

Published

on

By

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

Continue Reading

Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

Admin

Published

on

By

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

Continue Reading
Advertisement

OUR INDUSTRY PARTNERS



Trending