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What it will take to create a financially sustainable, zero-emission electric shipping ecosystem

WEF featured an article by Dong Kwan Kim, Vice-Chairman of Hanwha Group, exploring the key factors that will drive the creation of a financially sustainable, zero-emission global maritime ecosystem.

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RESIZED Chris Pagan

The World Economic Forum (WEF) on Wednesday (14 January) featured an article by Dong Kwan Kim, Vice-Chairman of Hanwha Group, exploring the key factors that will drive the creation of a financially sustainable, zero-emission global maritime ecosystem: 

The global shipping industry has reached a historic turning point. After more than two centuries of reliance on fossil fuels, shipping has begun to transition towards cleaner propulsion systems as climate commitments tighten and regulatory frameworks take effect.

The International Maritime Organization (IMO) has committed to net-zero greenhouse gas (GHG) shipping emissions by or around 2050. In Europe, regulatory pressure is also increasing. Through its Fit for 55 package, the European Union aims to reduce overall emissions by at least 55% by 2030 and has brought shipping into the EU Emissions Trading System. Under the phase-in schedule, operators will be required to surrender allowances covering 70% of their 2025 emissions in 2026 and 100% of their emissions from 2027 onward.

The market is already responding. Advances in vessel technologies, growing regulatory pressure and coordinated climate commitments are accelerating investment in electric and hybrid shipping solutions worldwide. As a result, the electric ship market is projected to grow from $4.85 billion in 2025 to $18.39 billion by 2032. And with policy frameworks converging globally, we can expect further growth.

In the short term, operators will need to rely on interim solutions, such as offset schemes and onboard carbon capture. But long-term compliance with tightening emissions regulations requires a fundamental shift in how ships are powered.

What will it take to scale electric and zero-emission shipping?

No single technology or policy can decarbonize shipping on its own. Reaching the scale required depends on coordination across the entire value chain, from shipbuilders and port authorities to power providers and policymakers. All of the following must be considered:

Clean propulsion systems

Different vessel types and routes require different technologies. Battery-electric propulsion suits shorter coastal and inland operations, while engines powered by alternative fuels and fuel cells are essential for longer voyages. A balanced portfolio of low- and zero-carbon propulsion options are needed to keep the sector on track.

Safe and high-performance energy storage

Scaling electric shipping requires energy storage solutions that are operationally robust and capable of supporting the power demands of commercial vessels. Energy storage systems (ESS) are central to decarbonizing shipping because batteries determine how far vessels can operate, how quickly they can recharge and how consistently they can perform without fossil fuels.

Retrofittable pathways

New, future-ready vessels will play an important role, but newbuilds alone cannot meet near- or mid-term climate goals. With ships typically operating for 20 to 30 years, retrofitting existing fleets with lower-emission technologies is a practical necessity.

Port-side charging infrastructure

Just as electric vehicles depend on land-based charging networks, electric ships require reliable access to charging or battery-swapping infrastructure. Without it, operators face operational and economic barriers that limit adoption.

Clean energy at the source

Port electrification must be supported by clean energy. Otherwise, emissions that are reduced at sea risk being shifted onshore. A genuinely zero-emission shipping ecosystem will rely on advanced vessel design and clean energy systems that power the ports they serve.

Public-private collaboration

The scale of the transition demands joint action. Governments and industry must work together to reduce risk, align technical and regulatory standards and build shared infrastructure. Collaboration is the only viable path to commercial viability.

The importance of early action

Early adopters play a fundamental role in proving new technologies and business models. While first-mover investments may not offer immediate returns, they’re critical to building confidence, lowering risk and enabling broader market uptake.

Note: The full article can be viewed here

 

Photo credit: Chris Pagan on Unsplash
Published: 19 January, 2026

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Biofuel

BHP and GCMD trial multi-feedstock B100 bio bunker fuel on bulk carrier

Bio-blend in the BHP and GCMD pilot is being used on a BHP-chartered bulk carrier “Berge Lyngor”, which was bunkered in Singapore in early May.

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BHP and GCMD trial multi-feedstock B100 bio bunker fuel on bulk carrier

BHP and the Global Centre for Maritime Decarbonisation (GCMD) on Wednesday (3 June) said they have blended biofuels from two distinct feedstocks—used cooking oil and waste animal fats —and introduced the lower-emissions marine fuel into a BHP-chartered bulk carrier as part of a pilot project.

The bio-blend in the BHP and GCMD pilot is being used on a BHP-chartered bulk carrier Berge Lyngor, owned and operated by Berge Bulk, transporting BHP iron ore from Western Australia to China. When run on bio-blend, the vessel has the potential to reduce well-to-wake greenhouse gas emissions by approximately 79 per cent per voyage compared to sailing on very low sulphur fuel oil (VLSFO).

The vessel bunkered in Singapore in early May with a B100 bio-blend comprising 50 percent tallow-derived biodiesel, sourced and supplied by HAMR Energy, and 50 per cent used cooking oil (UCOME) supplied by Mitsui & Co Energy Trading Singapore (METS).

Mitsui also blended the fuel and Dan-Bunkering coordinated and executed the bunkering operation, which was performed by Global Energy’s barge MT Maple.

The BHP and GCMD pilot will assess how biofuels from multiple feedstocks can be blended, handled, and introduced under real-world operating conditions using existing used cooking oil bunkering infrastructure.

At the same time, insights from this pilot will help identify solutions to challenges related to fuel quality, handling, traceability, and onboard vessel performance.

Biofuels for global shipping today rely heavily on used cooking oil – a feedstock whose availability is approaching its projected limits. Biofuel from waste animal fats presents a promising option to expand the supply of lower-emissions marine fuels.

The outcomes of the pilot are expected to shed light on the practical steps to integrate biofuel blends from different feedstocks into existing supply chains. The diversity of biofuels will provide shipowners and operators with greater flexibility to optimise fuel procurement based on cost, availability, and lifecycle emissions performance.

Biofuels derived from different feedstocks can exhibit varying properties that may impact operations, including potential corrosion from oxidation, fuel system clogging caused by wax formation, which this pilot aims to assess.

The pilot will trace and verify the biofuel blend’s integrity aimed at bolstering confidence in emissions reductions reporting. The pilot will also provide insights into how robust tracing can support future marine fuel supply chains where biofuels from multiple feedstocks with varying lifecycle greenhouse gas emissions footprints are blended together.

This project is co-funded by the Maritime and Port Authority of Singapore under the Maritime Innovation and Technology Fund (MINT).

 

Photo credit: Global Centre for Maritime Decarbonisation
Published: 3 June, 2026

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Biofuel

NYK starts one-year B100 bio bunker fuel trial on car carrier

In this trial, NYK will operate a car carrier continuously on B100 for one year to evaluate the impact on engines, fuel supply systems, and operational practices.

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NYK starts one-year B100 bio bunker fuel trial on car carrier

Japanese shipping firm NYK on Tuesday (2 June) said it has commenced a one-year long-term trial involving the continuous use of 100% biofuel (B100) on an NYK-operated car carrier. 

In this trial, NYK will operate a car carrier continuously on B100 for one year to evaluate the impact on engines, fuel supply systems, and operational practices. High-purity biofuels such as B100 are known to be susceptible to degradation from oxygen, light, and heat, raising concerns about the stability of such fuels during long-term use.

In this trial, the biofuel primarily comprises FAME (Fatty Acid Methyl Ester) derived from used cooking oil and similar feedstocks.

The initiative is designed to evaluate the fuel’s effects on the vessel’s equipment and verify operational safety under real-world conditions. 

Through this effort, NYK seeks to accumulate technical expertise that will support the broader use of high-purity biofuels and further accelerate efforts to reduce greenhouse gas (GHG) emissions.

NYK has been advancing the use of biofuels through various initiatives. In 2024, the company conducted a trial using biofuel blend B24 and subsequently expanded practical usage to B30. However, the company said there remains limited global experience with the long-term continuous use of B100.

“By collecting long-term operational data through this trial, NYK aims to accumulate valuable technical insights to support both the safe operation of vessels and the wider adoption of high-purity biofuels,” it said. 

 

Photo credit: NYK
Published: 3 June, 2026

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Ammonia

AM Green plans to build green ammonia plant at Indian port

Initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes, says VOC Port Authority.

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VO Chidambaranar (VOC) Port Authority on Friday (29 May) said it has signed a Memorandum of Understanding (MoU) with India’s ammonia producer AM Green Ammonia to collaborate in the development of a green ammonia production plant.

The plant will have a capacity of one million tonnes per annum (MTPA) at Tuticorin.

The initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes. 

The project is expected to support the development of green fuel corridors connecting VOC Port with major ports in Europe and Asia, thereby strengthening India’s position in the global green fuels value chain.

VOC Port also signed a Memorandum of Understanding (MoU) with Bureau Veritas (India) Pvt. Ltd., to collaborate on Green Port certification, emissions accounting, ESG reporting, safety validation, development of green bunkering practices, and establishment of a Centre of Excellence for green fuels and sustainability.

The port also plans for an upcoming 750 m³ green methanol bunkering facility.

 

Photo credit: Naveed Ahmed on Unsplash
Published: 3 June, 2026

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