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STEAM CLEAN PROPULSION • THE GLOBAL SHIPPING INDUSTRY IS SEARCHING FOR THE BEST WAY TO MEET FUTURE ENVIRONMENTAL LEGISLATION, WITH SEVERAL OPTIONS BEING EXPLORED
A YEAR AGO the global maritime industry was in a panic, desperately trying to figure out how it was going to meet the new restrictions on sulphur oxide emissions from its ships being imposed by the International Maritime Organisation (IMO) and due to come into effect on 1 January 2020. Despite the ‘IMO 2020’ rule being flagged up some years beforehand, it seemed that many in the industry did not believe that the deadline would be met and were slow to figure out how they were going to meet it. In the end, it came down to three options for ship operators: burn low-sulphur fuel oil, which was expected to be in short supply and more expensive than standard intermediate fuel oil; install exhaust scrubbers to meet the emissions limits, with the attendant cost of installation and having to take vessels out of operation; or to switch to alternative fuels.
LNG has been the focus of much of the attention on alternative fuels, despite the technical issues concerning its use in engines and the need to retrofit the specific fuel tanks needed to handle a cryogenic liquid. The comparative lack of a bunkering network is also being gradually addressed, particularly in regions of the world where environmental considerations are high on the agenda (particularly in Scandinavia) or for regular, shortsea operations where a scheduled bunkering operation is easy to arrange. Some cruise operators, keen to promote their ‘green’ credentials, have also taken to LNG. LNG has long been used in LNG carriers as a supplementary fuel – the methane that boils off the cargo can be diverted to the main engine – and LPG tanker operators have also been looking to take a similar approach, with BW LPG in particular investing heavily in
retrofitting some of its very large gas carriers (VLGCs) to be able to burn LPG in their engines. However, the IMO 2020 rule is only a step on the road to decarbonisation in the maritime industry as IMO seeks to implement the UN’s global sustainability goals. And it is becoming apparent that all carbon-based fuels, including LNG and LPG, are only a temporary stage on that road. LET’S WORK TOGETHER The maritime industry as a whole has seen how IMO 2020 worked and is looking to be better prepared when the ‘IMO 2030’ and ‘IMO 2050’ restrictions arrive. These will focus on reducing the carbon intensity of marine fuels, with the ultimate aim of achieving a carbonneutral position. The industry has already taken steps to address decarbonisation, as a recent report from Shell and Deloitte reveals. The report, Decarbonising Shipping: All Hands on Deck, sets out the views of senior shipping executives from across the sector and presents a roadmap of solutions. “We know that shipping is one of the harder sectors to decarbonise, which is why we are working with our customers and the wider industry to identify possible solutions,’’ says Huibert Vigeveno, downstream director of Shell. “In conducting this unique study involving detailed interviews with more than 80 of shipping’s top executives, we have been able to better understand the views of our customers and the broader shipping sector,” adds Grahaeme Henderson, vice-president of Shell Shipping & Maritime. “The research identified the barriers the industry faces, solutions that will drive progress, and how we can work to help accelerate change. We want to catalyse progress towards a net-zero emissions shipping industry and working together will be crucial to implementing these solutions.” The report certainly identifies a pressing need for cross-industry collaboration and a commitment on the part of charterers (such as Shell itself) that will involve long-term charters of ‘green’ vessels. It urges company partnering to develop zero- or low-emission fuel solutions through joint R&D efforts,
HCB MONTHLY | SEPTEMBER 2020
