UP FRONT 01
EDITOR’S LETTER
THAT INDUSTRY – and the world at large – is on a road to
Therefore, it is likely that renewable energy will need to be
decarbonisation is now surely beyond doubt. How it gets there
imported into Europe in similar volumes to the current trade
is still an open question but what looks likely to be of greater
in hydrocarbons. Indeed, the volume will likely be even greater,
concern is how much it is all going to cost.
given the lower energy density of hydrogen, ammonia or green
There are plenty of options being touted as alternatives to fuel
methanol, each of which is being touted as a viable alternative
industry, keep transport moving and help us all stay warm and
fuel. Shipping companies, shipyards, classification societies
cosy at home. There is no single solution – but then again, we
and naval architects around the world are currently beavering
currently use all manner of hydrocarbon-based fuels for those
away on concepts and designs for the necessary vessels to
purposes: coal (and lignite), oil and its various refined products
carry those products at scale, with some promising projects
(including LPGs), natural gas and, in less developed parts of the
already underway. Similarly, as we report on again this month,
world, wood.
other companies are looking at developing a logistics chain
Those products are traded globally and, as a result, there is a big maritime industry dedicated to their transport. In Europe, for
for the disposal of captured carbon dioxide. But those solutions are still some way off from being able
instance, where natural oil and gas resources are insufficient to
to deliver the fuels that Europe will need in the volumes that
meet regional demand (and getting ever more insufficient), many
will be necessary (leaving aside the question of whether the
hydrocarbons are imported in vast quantities to meet the needs of
electricity distribution network is up to the job of moving all
industry, commerce and people. Throughput figures for the Port of
those electrons around to consumers). In the meantime, we
Antwerp, quoted in this month’s HCB, show something of the size
are stuck with lower-carbon alternatives (mainly based on gas)
of the trade.
and financial mechanisms to promote energy efficiency.
If we are to move towards a dependence on non-hydrocarbon,
In its annual results for 2021, reported this month, Odfjell
renewable fuel sources, Europe will inevitably find itself in
contemplated the additional cost of meeting EU carbon
the same position: while there has been a lot of investment in
emissions reductions targets due to come into effect next
photovoltaic and wind power – and possibly in tidal power in the
year, specifically through Carbon Allowances, currently trading
future – and hydro-electric generation is well established in those
at around $90/tonne. That cost will have to be passed on to
fortunate locations that are suited (and we might also add nuclear
charterers and, ultimately, end users – and that means you
power, though that is currently rather unfashionable), those
and me. That might be considered a small price to pay to
renewable energy sources are also unable to meet the growing
save the plant, although it could well prove to be too little,
need for power, a need that is only going to get greater with the
too late.
move to electricity-based mobility.
Peter Mackay
WWW.HCBLIVE.COM
