Sustainable marine fuels: the key to finally decarbonise shipping? [Advocacy Lab Content]

Recent advancements in low-carbon fuels for ships will likely mean new verification and reporting requirements. But the flexibility of ships has made for unique challenges – and opportunities.

Most people don’t realize it, but the products that they buy every day, which have been shipped from around the world, are contributing more to climate change than flying in an aeroplane. Maritime shipping plays a crucial role in the world economy, but it’s also a significant contributor to air pollution and climate change that’s responsible for 3.6% of global emissions – more than aviation.

A lack of political, media and public attention on the subject has meant global efforts have been very slow. But in recent years, there has been a growing focus on finding sustainable solutions to lower emissions from maritime shipping, one of which is the use of sustainable marine fuels.

Sustainable marine fuels

Traditional marine fuels, such as heavy fuel oil, are known for their high emissions of sulphur dioxide and other pollutants. In contrast, sustainable marine fuels (SMF), also known as biofuels or alternative fuels, are derived from renewable sources and produce fewer harmful emissions when burned. These fuels can help maritime vessels reduce their carbon footprint and move towards a more environmentally friendly operation.

One type of sustainable marine fuel that has gained traction in recent years is biofuel. Biofuels are produced from organic materials such as algae, cooking oil, or plant waste. They can be used as a direct replacement for traditional marine fuels or blended with them to reduce emissions.

Biofuels are considered carbon-neutral because the carbon dioxide emitted during their combustion is roughly equal to the amount that the source plants absorb from the atmosphere during their growth. But there are questions about whether they can be produced in sufficient quantities, cost-effectively, to power an intercontinental maritime journey.

Other possibilities for sustainable marine fuels include hydrogen and ammonia. These fuels produce zero emissions when burned, offering a pathway to decarbonize shipping operations completely. However, challenges such as production costs, infrastructure requirements, and safety considerations need to be addressed before widespread adoption could occur.

Global efforts advancing

To promote the uptake of sustainable marine fuels, governments, industry stakeholders, and international organizations have been introducing regulations and incentives. The International Maritime Organization (IMO) has set strict sulphur emissions limits through the International Convention for the Prevention of Pollution from Ships (MARPOL), driving the adoption of cleaner fuels. Additionally, financial incentives, tax breaks, and research funding are being provided to encourage the development and utilization of sustainable marine fuels.

These new policy frameworks will require new methods of verification and reporting. Several frameworks have stepped in, one of which is International Sustainability and Carbon Certification (ISCC). ISCC is already certifying biofuels, renewable fuels of non-biological origin (RFNBO) and recycled carbon fuels.

Near-zero GHG emissions

“The IMO has set the objective of increasing the uptake of ‘zero, or near-zero GHG emissions technologies’, including fuels, to represent at least 5% – and striving for 10% – of energy utilized in international shipping by the year 2030,” says Dario Formenti, system manager for sustainable fuels at ISCC. “The IMO is currently constructing comprehensive LCA Guidelines to establish the sustainability and life cycle emissions impact of SMF under future IMO regulations.”

“Many different feedstocks and production pathways are to be considered, including biofuels from crop and waste/residue feedstocks – such as FAME, renewable diesel, DME and methanol – co-processed fuels, and e-fuels such as green hydrogen derivatives and ammonia from renewable electricity,” said Formenti.

It is not yet known whether the IMO’s LCA guidelines will specifically envisage the use of certification schemes, but Formenti says ISCC is remaining in active dialogue with the IMO to facilitate this if it happens. “ISCC is also supporting efforts at multiple levels, including with the IMO and the EU, to ensure a workable certification framework for sustainable marine fuels.”

EU regulatory framework

The EU is also working on several regulatory frameworks covering maritime shipping. The EU regulation on the verification, and reporting of CO2 emissions from maritime transport, which started requiring reporting in 2017, has been building the data to serve as the basis for this framework.

The FuelEU Maritime Regulation, slated to apply starting January 1, 2025, targets GHG intensity reductions for ship operators. The energy used on board vessels is to be reduced by 6% by the year 2030, and gradually decline, reaching a final target of an 80% reduction by 2050.

These requirements will be applied at the fleet level, meaning that individual ships within the same fleet may pool their compliance requirements together to meet mandatory reduction levels.

Fuels that count towards FuelEU Maritime include biofuels, biogas, RFNBOs, and RCFs, as defined in the EU’s Renewable Energy Directive. Additionally, starting in January 2024 the EU’s Emissions Trading System (ETS) was extended to the maritime sector, making the utilization of alternative marine fuels one of the primary ways for ship owners and operators to comply with their obligations under FuelEU and the EU ETS.

Exceed the status-quo

Adam Kirby, another system manager for sustainable fuels at ISCC, says that in the meantime shippers shouldn’t just be sitting back waiting for regulatory requirements to kick in. “While regulatory sights for sustainability within the marine sector have been increasing, there remain a plethora of opportunities for shippers – or organizations operating with a maritime capacity – to exceed the ‘status-quo’ and to become industry first movers,” he says.

“These organizations have the added benefit of being directly engaged in shaping the future of the industry.”

Kirby added: “Sustainable fuels have, and will, play an ever-important role in decarbonization, which of course includes the marine sector.”

“Early adopters, and those exceeding regulatory requirements, could bolster their positions by providing testament to not only end consumers but to others within the industry, of the positive outcomes achieved via sustainable fuels,” he said.

Maritime certification

A unique aspect of sustainable marine fuel certification, as opposed to the other fuels that ISCC certifies, is that ships can be more flexible than other forms of transport. “As the maritime industry is more flexible than other industries in terms of fuel specification, other types of sustainable alternative marine fuels are currently under certification and review,” remarked Kirby.

“As maritime certification requirements continue to be developed, ISCC remains engaged to assist in developing solutions to expand the amount and types of sustainable fuel alternatives being utilized.”

Sustainable marine fuels offer a promising solution to lower emissions from maritime shipping and mitigate the industry’s environmental impact.

By investing in research and infrastructure development, promoting regulatory frameworks, and fostering collaboration among stakeholders, the maritime sector could transition towards a more sustainable future and contribute to global efforts to combat climate change. It will be imperative for shippers to be able to track and verify their progress in these efforts.

[By Dave Keating I Edited by Brian Maguire | Euractiv’s Advocacy Lab ]

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