TITLE:
The Decarbonization of the Shipping Industry and the New Fuel Issue
AUTHORS:
Alexandros M. Goulielmos
KEYWORDS:
Shipping, Decarbonization, Shipowners, Fuels, Increasing Returns, Classification Societies, Shipyards, Energy Crisis
JOURNAL NAME:
Modern Economy,
Vol.12 No.12,
December
30,
2021
ABSTRACT: The efforts of the international community to build
the green ships of the future, and modify the present ones, by decarbonizing
them, were described. These efforts depend on the joint effort of 7 major
global enterprises: marine engine manufacturers, energy providers, marine fuel
suppliers, shipyards, classification societies, ports and charterers. To date,
5 fuels have been suggested: LNG, biofuels, ammonia, methanol and hydrogen.
Shipowners are happy using the heavy fuel oil (HFO), which they employed for
the last 38 years. This was a result of efforts made by engine manufacturers
and fuel providers (the seven major oil companies), due to the sudden increases
in fuel oil prices in 1973 and 1979. Technology provided more efficient
engines, and cheaper new fuel. In 2005, the IMO terminated shipowners’
happiness by adopting Annex VI of the MARPOL 1973/1978 International
Convention. Shipowners seek now the new fuel to have the following six
properties: 1) cheap (as HFO), 2) safe, 3) compatible with the (new) engines,
4) available, 5) of high energy density, and 6) produced in adequate quantities.
They most probably will get new fuel, but in the meantime, they have to build
dearer, dual-fuel-ready ships, which comply with NOx Tier III
regulations. Twenty-five projects are described, which attempted to decarbonize
the planet, and shipping. The concept of increasing returns is reintroduced.
Environment will improve by itself, we
believe, during 2022 and thereafter, due to COVID-19 and the present
energy crisis. Nations need to resort to Renewable sources of Energy immediately, and in any event, by
2050. But will the energy crisis act as a brake on economic development?