• 2020 November 12 17:04

    ICS report reveals scale of challenge to decarbonise shipping

    A new report from the International Chamber of Shipping (ICS) has laid bare the scale of the industry’s decarbonisation challenge. It also sets the scene for governments to back an industry proposal to form a global $5bn R&D fund to de-risk future investment.

    The report warns that a failure by governments to support the industry’s initiative to accelerate R&D risks trillions of dollars of investment being misallocated, making it impossible for the sector to decarbonise. The report, 'Catalysing the Fourth Propulsion Revolution', looks at different options to help decarbonise shipping and achieve the greenhouse gas (GHG) reduction targets established by the industry’s global regulator, the UN International Maritime Organisation (IMO).

    These include the use of Ammonia, Hydrogen, and Batteries to power the global fleet. However, the report finds that currently, zero carbon fuels are not available at the size and scale needed to drive decarbonisation. While there are several promising potential zero-carbon fuels and technologies, the emissions reductions called for by the international community and industry require a huge amount of research and development before they can become viable.

    This represents a ‘financial iceberg’ for the industry, as pressure to regulate emissions is currently moving faster than supply chains’ ability to keep pace. Without innovation and a massive scaling-up of research and development, there is a significant risk of stranded assets that will impact nation states, the finance community and the shipping industry. International shipping is integral to the global economy, transporting about 90% of global trade volumes. It also currently has to use four million barrels of oil a day - 4% of global oil production, or equivalent to a third of the daily production of Saudi Arabia.

    The energy needed to power one large container ship across the ocean in a single day is the same needed to power 50,000 homes. Shipowners are acutely aware of the need to decarbonise, something that can only be done with the development of a new generation of technologies and new zero-emission fuels. New fuels urgently need to be developed along with novel propulsion systems, upgraded vessels and an entirely new global refuelling network.

    The report examines three alternative fuels in more detail:  ‘Green’ Ammonia - one of the most promising low-emission fuels, with the IEA predicting that its use for shipping will reach 130m tonnes by 2070, twice as much as was used worldwide for fertiliser production in 2019. However, it is less energy dense that oil, meaning ships will consume up to five times as much fuel by volume. Ammonia production would have to rise by 440 million tonnes – more than treble current production – requiring 750 gigawatts of renewable energy.

    This means that shipping alone would consume 60% of the world’s current renewable energy production of 2,537 gigawatts.  Hydrogen - emits no carbon but its current commercial production emits large amount of the GHG, negating its green credentials. However, research is underway to prevent this. Similar to ammonia, fuel density is poor, and a new bunkering system would also be required.

    Hydrogen use could reach 12 million tonnes in 2070, equivalent to 16% of 2019 global maritime bunker demand and 16% of today’s global hydrogen use.  Fuel Cells and Batteries - the battery challenge is just as great: a typical container vessel would require the power of 10,000 Tesla S85 batteries every single day meaning that it would require 70,000 batteries in order to sail for a week. Wind power could complement electric vessels, although the current view is that they will only be viable for short-distance trips, but this could change with increased R&D.

    To upscale these and other infant technologies into adoptable solutions, large levels of investment in R&D is required. Operational improvements alone cannot achieve the 90% efficiency targets needed to reach the IMO 2050 goal of halving emissions compared to 2008. Instead, commercially viable zero-carbon technologies must be available by 2030. Trillions of dollars of investment will rely on the success of such initiatives to identify the right zero-carbon technologies of tomorrow.




2021 January 17

17:19 Coast Guard, TCI Police rescue 159 people off Turks and Caicos
16:49 Svitzer Australia takes delivery of second of three new tugs for Mid West Ports and Port of Geraldton
15:34 CMA CGM strengthens its customer offer
14:29 GTT obtains AiP from BV for the NO96 containment system application as LNG fuel tank for ULCVs
13:42 Poty of Los Angeles cargo reaches 9.2 million TEUs in 2020
12:16 OOCL presents 2021 Ocean Alliance products
10:49 Hapag-Lloyd announces PSS on Turkey and Greece to USA trade

2021 January 16

15:39 New ship Silver Dawn floats out in Ancona.
14:31 Signing of MoU in relation to 2 units of 250 feet crane barges
13:28 CMA CGM to apply FAK rates for North Europe to Gulf and Red Sea trade
12:49 DuPont Clean Technologies to develop scrubbing project with BELCO® technology to control the emissions of Empresa Nacional de Petróleo (ENAP)
10:35 Hapag-Lloyd announces blank sailings on Europe - Asia trade
09:11 Golar LNG and Stonepeak Infrastructure Partners to sell 100% of Hygo Energy Transition Ltd. to New Fortress Energy

2021 January 15

18:15 Organic fertilizers and biogas from biowaste in the Helsinki region – commercial use of the Lohja biogas plant started up
18:04 New Speakers and Sponsors announced for Unmanned Maritime Systems Technology virtual conference
17:51 High reliability of Limburg Express requires expansion
17:41 Gulf of Guinea records highest ever number of crew kidnapped in 2020, according to IMB’s annual piracy report
17:38 Diana Shipping announces increase in tender offer price for its shares of common stock and extension of expiration date
17:29 OCEAN Alliance Day 5 Product signing ceremony
17:08 i4 Insight partner with FNT to integrate Condition Monitoring service
17:06 Throughput of Rostov-on-Don port in 2020 grew by 13% Y-o-Y
17:03 The effects of the coronavirus epidemic prevention regulations on Finnlines passenger traffic
16:42 Launching of Viking Glory slated for Jan 26
16:28 Carisbrooke Shipping and SMT Shipping partner with Nautilus Labs for collaboration to optimize fleet performance
16:01 Tallink Grupp appoints new Managing Director for Swedish subsidiary Tallink Silja AB
15:17 USCG cutter Joseph Gerczak to increase maritime presence in Pacific
14:47 First steel cut for new Carnival Celebration, next Excel-class ship set to debut from PortMiami in 2022
14:22 Zvezda Shipyard starts cutting steel for third MR product carrier
13:57 Bunkering of a new-generation LNG-powered container ships begins in Rotterdam
13:26 Holland America Line opens bookings for Europe 2022 cruises - four ships span the region on itineraries ranging from 7 to 21 days
13:08 SCF takes delivery of new LNG carrier to expand long-standing partnership with Shell
12:49 Anatoly Meshcheryakov appointed as Director of Transport Department
12:34 BW Offshore: Incident on FPSO Espoir Ivoirien
11:21 Sakura Kuma named as new managing director of APM Terminals Japan
10:56 Turnover of DeloPorts terminals grew by 36% in 2020
10:32 MABUX: Bunker market this morning, Jan 15, 2021
10:04 Jinling hands over Grimaldi Group’s second GG5G Class hybrid ro-ro
09:57 Biggest Dutch project for CO2 reduction, Porthos, is on schedule
09:55 Bunker prices show no significant changes at the Port of Saint-Petersburg, Russia (graph)
09:34 Crude oil prices continue decreasing in expectation of COVID-19 related lockdowns to affect the demand
09:19 Baltic Dry Index as of January 14

2021 January 14

18:25 Throughput of Russian seaports in 2020 fell by 2.3% Y-o-Y
18:03 Torvald Klaveness First Steamship joins Baumarine by MaruKlav
17:48 Exports of Transneft oil via seaports fell by 21.3%
17:31 Wärtsilä SmartMove Suite sets sail with the American Steamship Company
16:47 Marine Administration of the Russian Federation extends validity of seafarers’ documents
16:23 CMA CGM announces Empty Equipment Imbalance Surcharge for cargo from North Europe, United Kingdom, Baltic States, Scandinavia & Russia to Nigeria
16:18 Bunker Outlook, Jan 14, 2020
16:03 Contecon Manzanillo caps off 2020 with 1M TEU milestone
15:55 Enhanced requirements for shore-based personnel boarding vessels in the Port of Singapore
15:41 Dredging fleet of Rosmorport’s Astrakhan branch expanded with dredging convoy
15:23 Equinor selected for largest-ever US offshore wind award
15:03 Konecranes makes first UK installation of S-series crane
14:44 Bunker prices increased in the Far East ports of Russia (graph)
14:22 Abu Dhabi Ports to provide container transportation services between Musaffah-based facility and Khalifa Port
14:03 North Sea Port feels reports 63.5 million tons of cargo transhipment from maritime shipping in 2020
13:40 Port of Riga saw cargo structure changes in 2020
13:23 Kalmar’s straddle carrier technology to enhance operational capabilities at Iles de la Réunion
13:21 Port Houston annual container volumes near record in December 2020
12:48 Throughput of Sovetskaya Gavan port surged by 83% in 2020