Posted: August 14th, 2022

The Impact of Decarbonization Efforts on Ship Design, Fuels and Propulsion Systems

The Impact of Decarbonization Efforts on Ship Design, Fuels and Propulsion Systems
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The shipping industry is responsible for about 3% of global greenhouse gas (GHG) emissions and plays a vital role in the global economy as the main transporter of energy, food and materials. However, as the world becomes more mindful of sustainability issues, it is incumbent on the maritime sector to do its part in creating a more sustainable future. In July 2023, the International Maritime Organization (IMO), the global regulatory body for shipping, adopted the Revised GHG Strategy that sets a sectoral target of net-zero emissions by or around 2050. This is not only a crucial step for shipping, but also for the international climate collaboration and the global economy.

This blog post will explore how the shipping industry can achieve this ambitious goal and what are the implications for ship design, fuels and propulsion systems. It will also discuss some of the challenges and opportunities that lie ahead for the maritime sector and its stakeholders.

## The IMO Revised GHG Strategy
The IMO Revised GHG Strategy is based on four pillars: mitigation measures, adaptation measures, technical cooperation and capacity building, and research and development. The Strategy sets out indicative emission reduction targets for 2030 (20% emissions reduction, striving for 30%) and 2040 (70% emissions reduction, striving for 80%), taking all GHG emissions from the full life cycle of fuels into account. These targets combined set a clear pathway for the industry and provide a signal that immediate action is needed.

The Strategy also refers to ensuring a just and equitable transition for all countries, especially developing ones, that may be affected by the decarbonization process. Furthermore, the IMO agreed on the development of a policy package in the coming two years to achieve these targets. The policy package may include measures such as carbon pricing, market-based mechanisms, operational efficiency standards, speed limits, fuel taxes or levies, and incentives for zero-emission fuels.

## The Role of Ship Design
One of the key levers to reduce GHG emissions from shipping is to improve ship design and efficiency. This can be achieved by applying various technologies and innovations that can reduce fuel consumption and enhance performance. Some examples of these technologies are:

– Hull optimization: improving the shape and coating of the hull to reduce drag and resistance.
– Propeller optimization: improving the design and material of the propeller to increase thrust and reduce cavitation.
– Air lubrication: injecting air bubbles under the hull to create a cushion that reduces friction.
– Wind-assist: using sails, kites or rotors to harness wind power and supplement propulsion.
– Waste heat recovery: capturing and reusing the heat generated by the engine or other sources.
– Energy storage: using batteries or other devices to store excess energy and use it when needed.

According to a study by McKinsey, these technologies can reduce fuel consumption by up to 40% for existing ships and up to 60% for new ships by 2030. However, they also require significant upfront investments and may face technical, regulatory or operational barriers. Therefore, it is important to assess the costs and benefits of each technology and select the most suitable ones for different ship types and routes.

## The Role of Fuels and Propulsion Systems
Another key lever to decarbonize shipping is to switch from fossil fuels to zero-emission fuels and propulsion systems. This can be achieved by using alternative fuels that have lower or zero carbon intensity and are compatible with existing or new engines. Some examples of these fuels are:

– Biofuels: fuels derived from organic sources such as plants or waste that can be blended with conventional fuels or used as drop-in replacements.
– LNG: liquefied natural gas that has lower carbon intensity than conventional fuels but still emits methane, a potent GHG.
– Hydrogen: a gas that can be produced from renewable sources such as water electrolysis and can be used in fuel cells or internal combustion engines.
– Ammonia: a gas that can be produced from renewable sources such as water electrolysis or biomass gasification and can be used in internal combustion engines or fuel cells.
– Methanol: a liquid that can be produced from renewable sources such as biomass gasification or carbon capture and utilization and can be used in internal combustion engines or fuel cells.

According to a study by UNCTAD, these fuels can reduce GHG emissions by up to 100% compared to conventional fuels by 2050. However, they also face several challenges such as high production costs, low availability, safety risks, storage and handling issues, and infrastructure requirements. Therefore, it is essential to develop and scale up these fuels and their supply chains, as well as to ensure their compatibility and interoperability with different propulsion systems.

## The Way Forward
The shipping industry has a unique opportunity to contribute to the global climate action and to create a more sustainable future. However, this also requires a bold and collaborative effort from all stakeholders, including shipowners, cargo owners, energy suppliers, policymakers, regulators, financiers, customers, and civil society. Some of the steps that stakeholders can take now to kickstart or accelerate their journey toward zero-carbon shipping are:

– Setting clear and ambitious decarbonization targets and strategies aligned with the IMO Revised GHG Strategy and the Paris Agreement.
– Investing in ship design and efficiency technologies that can reduce fuel consumption and enhance performance.
– Exploring and testing alternative fuels and propulsion systems that can reduce or eliminate GHG emissions.
– Engaging in cross-sectoral partnerships and initiatives that can foster innovation, knowledge sharing, and best practices.
– Advocating for supportive policies and regulations that can create a level playing field and incentivize decarbonization.
– Mobilizing the financial sector and customers to provide funding and demand for zero-carbon shipping.

The shipping industry is at a critical juncture. The IMO Revised GHG Strategy has set a clear direction and a high ambition for the sector. The technologies and solutions to decarbonize shipping are available or within reach. The benefits of decarbonization are not only environmental, but also economic and social. The time to act is now.

References
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: Net-zero by 2050: Achieving shipping decarbonization through industry momentum and the new ambition at IMO. (2023). UNCTAD. https://unctad.org/news/transport-newsletter-article-no-108-net-zero-by-2050

: Bold global action needed to decarbonize shipping and ensure a just transition: UNCTAD report. (2023). UNCTAD. https://unctad.org/news/bold-global-action-needed-decarbonize-shipping-and-ensure-just-transition-unctad-report

: Charting global shipping’s path to zero carbon I need help with my assignment. (2022). McKinsey & Company. https://www.mckinsey.com/industries/travel-logistics-and-infrastructure/our-insights/charting-global-shippings-path-to-zero-carbon

: Set Sail for Zero. (2022). UN Global Compact. https://unglobalcompact.org/take-action/ocean/communication/decarbonizing-shipping

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