Latest market news

Barriers remain to decarbonizing ships: Report

  • : Oil products
  • 24/10/15

Barriers to the adoption of sustainable marine fuels like ammonia, methanol, and hydrogen still remain an issue, such as the stability of fuel supplies, according to a report by classification society Lloyd's Register (LR).

A total of 431 ships are either "ammonia-capable" or "ammonia-ready" with most of those either bulk or gas carriers, LR said. The company also noted that the maritime industry is taking on more ammonia-related projects including two Norwegian companies, Yara and North Sea Container Line, forming a joint venture last year.

About 815 vessels are either capable or ready to use methanol on board in the current fleet and the order book, the report said. Many of these ships are using blue methanol, which has better availability, LR said.

For hydrogen, there are 78 vessels in operation and on order that are "hydrogen capable" but it is limited to coastal ferries and near-shore support ships. The fuel is not yet ready to use in larger, ocean-going vessels because of operating limitations that exist in those ships, like needing to bunker more frequently to finish a voyage, according to the report.

Future fuel supply and safety concerns are two factors that are limiting uptake in these sustainable marine fuels.

The maritime industry must have higher confidence that there will be available supply for the alternative marine fuels to boost investment, LR said. This may be possible if governments worldwide work with the maritime industry on policies that will increase supply.

The crew must be trained on using alternative marine fuels to mitigate any risk for the people on board, the report said. This could include forming research coalitions to better understand potential risk and completing trials on a ship to implement any new safety rules.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more