The Decarbonization of the Shipping Industry and the New Fuel Issue

Abstract

The efforts of the international community to build the green ships of the future, and modify the present ones, by decarbonizing them, were described. These efforts depend on the joint effort of 7 major global enterprises: marine engine manufacturers, energy providers, marine fuel suppliers, shipyards, classification societies, ports and charterers. To date, 5 fuels have been suggested: LNG, biofuels, ammonia, methanol and hydrogen. Shipowners are happy using the heavy fuel oil (HFO), which they employed for the last 38 years. This was a result of efforts made by engine manufacturers and fuel providers (the seven major oil companies), due to the sudden increases in fuel oil prices in 1973 and 1979. Technology provided more efficient engines, and cheaper new fuel. In 2005, the IMO terminated shipowners’ happiness by adopting Annex VI of the MARPOL 1973/1978 International Convention. Shipowners seek now the new fuel to have the following six properties: 1) cheap (as HFO), 2) safe, 3) compatible with the (new) engines, 4) available, 5) of high energy density, and 6) produced in adequate quantities. They most probably will get new fuel, but in the meantime, they have to build dearer, dual-fuel-ready ships, which comply with NO x Tier III regulations. Twenty-five projects are described, which attempted to decarbonize the planet, and shipping. The concept of increasing returns is reintroduced. Environment will improve by itself, we believe, during 2022 and thereafter, due to COVID-19 and the present energy crisis. Nations need to resort to Renewable sources of Energy immediately, and in any event, by 2050. But will the energy crisis act as a brake on economic development?