Green fuel supply needs a boost: Danish Shipping

: Hydrogen, Oil products
25/03/19

Production of zero-emission fuels needs to be increased to a level which will lower the cost of buying the fuel and help accelerate the transition to green fuels, according to Danish Shipping in a new report.

Consumption of zero-emissions fuels needs to reach 27pc of total energy consumption by 2036 and 93pc by 2046 to reach the maritime industry's goal of net-zero emissions by 2050, Danish Shipping, an industry trade group, said in the new report listing 10 recommendations on how Denmark's government can increase green fuel production.

The Danish government should allocate a larger share of projected revenue from the EU Emissions Trading System (EU ETS) for producing zero-emission fuels, Danish Shipping said.

About 3.8bn Danish krone ($555mn) of annual revenue is expected from the Danish shipping industry to fund EU ETS once it is fully implemented next year, according to the report.

"Revenue from the EU ETS could be effectively used as an earmarked support scheme for shipping's green transition – covering both fuel production and offtake," Danish Shipping said.

The FuelEU maritime regulation requires ship operators traveling in, out and within EU territorial waters to gradually reduce their GHG intensity on a lifecycle basis, starting with a 2pc reduction in 2025, 6pc in 2030, reaching an 80pc reduction by 2050, compared with 2020 base year levels.

The Danish government should also set up financial mechanisms to support green shipping, Danish Shipping said, like establishing competitive bids for contracts and sending money to the EU hydrogen bank and EU Innovation Fund that would go towards green fuel production projects.

The government should set up green shipping corridors in the North and Baltic seas. According to Danish Shipping, this would help make the Nordic region a leader in green shipping and incentivize suppliers, port authorities and shipping companies to transition to zero-emission fuel.

Singapore and Rotterdam have set up green shipping corridors to facilitate green shipping for vessels travelling between those ports.

By Luis Gronda

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25/04/02

Mexico manufacturing extends contraction in March

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UK to sign remaining CfDs for first H2 round in May

25/04/02

UK to sign remaining CfDs for first H2 round in May

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India's IOC cuts jet fuel prices by 6pc for April

25/04/02

India's IOC cuts jet fuel prices by 6pc for April

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US oil, farm groups push EPA for steep biofuel mandate

25/04/01

US oil, farm groups push EPA for steep biofuel mandate

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Mexico GDP outlook falls again in March survey

25/04/01

Mexico GDP outlook falls again in March survey

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