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Managing the Transition to Zero-Carbon Marine Fuels

January 18, 2024 Category: Transportation Work Area: Zero-Carbon Fuels

In response to increasing policy commitments supporting and requiring the global shipping industry to decarbonize in line with the Paris Climate Agreement, ship and engine manufacturers and cargo owners are evaluating and beginning to invest in ships and services that can be fueled with alternative low- and zero-carbon fuels. The relative carbon intensity (CI) and costs of these fuels, such as ammonia and methanol, can differ substantially depending on the types of feedstocks and processes for producing them. There are also important differences in ship design needs to ensure that alternative fuels are safely and effectively onboarded, stored, and used.

This analysis looks at key factors for producing low-carbon alternative fuels and opportunities for managing the costs of transitioning to low-carbon marine fuels, with an initial focus on ammonia.