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Sea Cargo Charter report demonstrates shipping’s shortfall against IMO climate goals

2024 report highlights the gap between current emissions and the IMO’s revised strategy for net-zero emissions by 2050.

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Sea Cargo Charter 2024 report

The shipping industry must take urgent action to meet ambitious new climate targets set by the International Maritime Organization (IMO), according to a new report released on Thursday (13 June) from the Sea Cargo Charter (SCC), a global transparency initiative developed by the Global Maritime Forum.

New data from the SCC, a global framework representing 20% of global bulk cargo transport, reveals the sector fell short of minimum international climate goals set by the IMO by an average of 17% in 2023, equivalent to 165 million metric tonnes of CO2e.

When considering ‘striving’ goals set by the IMO, signatories are on average 22% misaligned, which represents a shortfall of 204 million metric tonnes of CO2e in 2023.

Currently, dry bulk, general cargo, and tankers account for around 400 million tonnes of CO2 emissions. With global trade predicted to quadruple by 2050, emissions will skyrocket without urgent action.

Reporting has also been expanded to include “well-to-wake” emissions, which measure emissions from the extraction of oil to its end use, providing a more comprehensive picture of environmental impact and pushing the industry towards faster decarbonisation.

The 2024 report highlights the gap between current emissions and the IMO’s revised strategy for net-zero emissions by 2050. The report shows the importance of commercial and operational decisions on the vessels’ use (such as, instructed speed, cargo and routing optimisation, laden/ballast ratio), innovation and cooperation within the industry to be able to take action in this transition.

Other identified barriers to cutting emissions are geopolitical disruptions, limited alternative marine fuel options for long voyages, and a lack of infrastructure to support new technologies.

The 2024 Annual Disclosure Report was produced by the Global Maritime Forum, which performs secretariat services for the Sea Cargo Charter with expert support provided by UMAS and the Smart Freight Centre.

 

Photo credit: Sea Cargo Charter
Published: 14 June 2024

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Nuclear

VARD and partners team up to explore nuclear propulsion for shipping

Project, which involves Knutsen Tankers and DNV, will evaluate fourth-generation nuclear reactor technologies for their viability in commercial shipping applications.

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VARD and partners team up in project to explore nuclear propulsion for shipping

Norway-based shipbuilder VARD on Friday (3 January) said it has partnered with the Norwegian University of Science and Technology in Ålesund, Norway and other key stakeholders in the NuProShip I project, which explores nuclear propulsion for the maritime sector. 

NuProShip, short for "Nuclear Propulsion in Shipping," will evaluate fourth-generation nuclear reactor technologies for their viability in commercial shipping applications.

In this project, an extensive assessment of 99 companies developing advanced reactor technologies led to the selection of three promising reactor types:

  • Kairos Power (USA): Fluoride high-temperature molten salt reactor using Tri-structural Isotropic (TRISO) fuel particles, designed for robust and efficient operation.
  • Ultrasafe (USA): Helium-cooled gas reactor, also employing TRISO fuel particles, known for their resilience and safety in extreme conditions.
  • Blykalla (Sweden): Lead-cooled reactor concept utilizing uranium oxide as fuel, offering high efficiency with advanced cooling mechanisms.

VARD said TRISO fuel particles, noted for their durability and containment properties, play a crucial role in two of these reactor types. 

“TRISO technology in fact, is renowned as one of the most resilient nuclear fuel types available today,” it added.

Alongside VARD, the NuProShip project is supported by other partners, including DNV, the Norwegian Maritime Administration, ship owner Knutsen Tankers, and the Spanish nuclear consultancy IDOM. 

VARD’s primary contribution involves integrating these reactor systems into various vessel types, assessing the technical challenges to enable the future commercial use of nuclear-powered ships.

 

Photo credit: VARD
Published: 10 January, 2025

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Alternative Fuels

LR: 600 vessels capable of using alternative bunker fuels ordered in 2024

New orders grew the total orderbook by more than 50%, to 1,737 vessels while in-service alternative-fuelled fleet also grew strongly, up 18% to 1,860 vessels.

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RESIZED william william on Unsplash

Shipowners continued to invest for a future of lower emissions in 2024, with 600 vessels capable of using alternative fuels ordered until 13 December, according to classification society Lloyd’s Register (LR) on Thursday (2 January). 

The new orders grew the total orderbook by more than 50%, to 1,737 vessels.

The in-service alternative-fuelled fleet also grew strongly, up 18% to 1,860 vessels. Combined with current orders, the fleet will stand at 3,597 – around 4.8% of all vessels in service and on order. 

But with the IMO’s 2030 target on zero and near-zero emission energy use crossing the five-year horizon, orders will need to accelerate further to meet the required 5-10% of shipping’s energy consumption.

“These numbers show the significant effort the industry is making to reach net-zero emissions,” said James Frew, Business Advisory Director, at LR. 

“As the maritime transition towards decarbonisation advances, the next steps will require greater alignment between industry ambitions, regulatory measures and, crucially, incentives to rapidly grow global production capacity for the alternative fuels shipping will need.” 

Methanol-fuelled vessels led the way amongst new fuels, with 119 orders adding more than a third to the existing orderbook. In early 2024 LR, which classed the very first methanol conversion in 2015 – the ro-pax Stena Germanica – was appointed to support and class Stena Line’s next two fast ferry conversions. 

It also teamed up with Danish alternative fuel specialist Green Marine to deliver training and consultancy around methanol fuel, helping to deliver the skills needed to make alternative-fuelled vessel operation a reality.

Ammonia-fuelled vessel orders more than doubled compared to the previous year, to 22 vessels. In 2025 the first ammonia-fuelled marine engines will be delivered, with a further surge in orders likely as the industry gains experience with the carbon-free fuel. 

As illustrated in LR’s Fuel For Thought report on ammonia published in March 2024, securing the safety of ammonia-fuelled ships through design, training and regulation will be crucial to maximise any opportunity for decarbonisation.

Hydrogen fuel also consolidated its appeal within relevant vessel segments, with orders for 12 more vessels in 2024. Two hydrogen-powered passenger ferries ordered by Norwegian transport company Torghatten Nord are set for LR class, while a memorandum of understanding with H2Terminals, HiDROGEN and D3IM was signed to assess the feasibility of a green hydrogen infrastructure project in the UK. LR also granted AiPs for several new hydrogen vessels, including ferries and tugboats.

Related: LR: Safety and supply crucial for widespread adoption of ammonia bunker fuel
Related: LR report sees surge in methanol engine retrofits in 2023, calls it a ‘defining trend’

 

Photo credit: william william on Unsplash
Published: 3 January, 2025

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Research

Yamna identifies five potential global ammonia bunkering hubs

Unlike methanol, ammonia is not constrained by biogenic CO2 availability, and its production process is relatively simple.

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Yanma projected ammonia bunkering hubs

Specialised green hydrogen and derivatives platform Yamna in early December identified several potential ammonia bunkering hubs around the world.

The hubs are Port of Rotterdam, Port of Algeciras, Suez Canal, Jurong Port, and Port of Salalah.

“The shipping industry faces an ambitious challenge: reducing emissions by 20% by 2030 (compared to 2008 levels) and achieving net-zero emissions by 2050, in alignment with IMO targets,” it stated.

“Achieving these goals in the medium to long term depends on the adoption of alternative low-emission fuels like green ammonia and methanol.

“Among these, ammonia is attracting growing interest as a viable option. Unlike methanol, it is not constrained by biogenic CO2 availability, and its production process is relatively simple.”

However, the firm noted kickstarting ammonia bunkering on a large scale required four enablers to align:

  • Ammonia fuel supply
  • Application technology
  • Bunkering infrastructure
  • Safety guidelines and standards

It believed ammonia bunkering hubs will first emerge where affordable and scalable ammonia supply is available.

Yanma Why use ammonia for bunkering fuel

 

Photo credit: Yanma
Published: 31 December 2024

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