Shipping decarbonisation requires $5bn investments
A vast amount of research and development (R&D) at a $5bn cost is required to speed up the roll-out at an industrial scale of zero carbon fuels necessary for the shipping industry’s decarbonisation, according to the ICS. In its report, ICS proposed the creation of a $ 5 bn fund. The fund must be paid through the marine fuel tax and monitored by the IMO. As a result, it enables research to produce cleaner marine fuels.
The sea freight industry is a heavy polluter. Sulfur is still the main fuel for the sector, which accounts for 90% of world trade in goods. It consumes 4m bbl/day of crude oil, or 4% of global production. This is almost equal to one third of Saudi Arabia’s daily production.
ICS said the only way for the shipping industry to decarbonise requires the urgent adoption of fuels based on products like ammonia and hydrogen. It also needs a wider rollout of electrification.
This is the only way to reduce greenhouse gas emissions that cause climate change. ICS asked governments to support and fund the creation of the International Maritime Research and Development Board.
ICS asks the IMO to support the offer. Because it has a wide range of benefits for the global sea freight sector. “The scale of the financial challenge is as great as the technical challenge. We need certainty and action to avoid the approaching financial iceberg as we set course for a zero-carbon future,” ICS said.
Methanol is one of the products that can make the most profit against the carbonization of the shipping industry. Obviously, the industry encourages this move. Methanol fortunes have been helped by its biodegradable properties. As a result it provides a sharp reduction in emissions from the most polluting gases used in transport.
According to the figures, the use of methanol as a fuel can reduce the effects of Co2. It can also remove SOx and certain substances. As a result, it reduces NOx emissions by 60%. Uptake has increased in recent year. Methanol is available at over 100 ports worldwide, including at all major bunkering hubs. Last week, IMO issued guidelines on the use of ethanol and methanol as low-emission marine fuels.
The trade group the Methanol Institute quickly welcomed the decision. Some sea freight companies are making attempts to increase the use of methanol as a fuel for freighter ships. Last week, the Proman Stena Bulk said it would build a third methanol-powered vessel. It will be operational by the second half of 2022.
For more information, check out the source. Also you can read the IMO guidelines here.