What does “alternative fuels” mean in shipping?

The shipping industry accounted for 2.89% of the world’s total carbon footprint in 2018 (IMO). With the sector committed to reducing emissions to net zero by or around 2050, alternative fuels are a vital way to reduce environmental impact.

The most common alternative fuels include biofuels, methanol, liquefied natural gas (LNG), hydrogen and ammonia. Each offers unique benefits in terms of emissions reduction and operational efficiency.

Biofuel is the term for fuel, gas, or liquid that derives from biomass or biomass residues. It can be produced from a wide range of feedstock and used directly or blended with conventional fossil fuels.

If derived from biofeedstock or green hydrogen and captured biogenic CO2, methanol has close to zero emissions from well to wake and is particularly beneficial for smaller vessels.

Hydrogen is considered a clean fuel from well to wake, when produced with renewable energy. It can be produced from various energy sources, such as electrolysis of renewables, or by re-forming natural gas.

Liquefied Natural Gas (LNG) is a natural gas produced from cooled-down methane, primarily. The fuel has been available since the 1950s and is used by more than 200 vessels, predominantly LNG carriers.

Some of the main challenges include the scalability of production, the need for new infrastructure, the cost gap between alternative and fossil fuels, and competition for these fuels with other industries.