Methanol, methanol, and more methanol; ammonia, hydrogen and collaboration with a capital C
As the box ship industry speeds up towards net zero, we’ve seen interest and the use of these alternative fuels ramp up in 2023. And with foundations in place, their use can only be expected to gain momentum.
Underpinning the journey to net zero is the need to collaborate across the industry. We have seen that start in a major way this year, and this will only be replicated in 2024.
The arrival of Laura Maersk in 2023 was an iconic moment: the arrival of the first container ship using methanol as a dual fuel. Maersk is also set to kick off 2024 with a methanol focus: it is to take delivery of its first 16,000-TEU methanol-fuelled box ship in Q1 2024. It now has 25 methanol-enabled vessels on order, with several set for delivery in 2024 and 2025. Maersk’s work to build a methanol supply network, and all the experience gained by collaborators to build a methanol-powered ship is going to open the door for box ships to be powered by this fuel. This can already be seen. 125 container ships are following in the footsteps of Laura Maersk and deploying methanol.
Enter ammonia – the new kid on the block. Interest in ammonia has gained great traction within box shipping in 2023. There have been several AiPs that will help to combat the challenges of its toxic properties, and the announcement of the first ammonia-powered box ship to hit waters in 2026 - North Sea Container Line says a new service between Hamburg, Bremerhaven, Oslo and Brevik will be fully powered by clean ammonia and can be seen as a milestone. Furthermore, there is a growing infrastructure for ammonia; for example, the Singapore Ammonia Bunkering Feasibility Study consortium is focusing on developing and demonstrating an ammonia supply chain in Singapore.
Box ship operators are also allowing their designs to be flexible, to leave room to convert to ammonia in the future. Ocean Network Express (ONE) has 20 13,000-TEU vessels on order, due for delivery in 2024-2025, that have ‘flex designs’, allowing them to be retrofitted to work with ammonia or methanol. Pacific International Lines has put its faith in ammonia for the long run with an order for eight container vessels to be delivered starting in 2024. These will, like ONE’s ships, have a flexible design with an ammonia-ready notation to allow them to use ammonia at a future date. With all this groundwork, I believe we will see a breakthrough for this fuel in the box ship sector next year.
Hydrogen has been scaling up the ranks as a solid option for box ships. There are several newbuild projects on the go, and, as mentioned in CST’s Editor’s picks for 2023, the first hydrogen inland container ship has been delivered. Future Proof Shipping has launched the first newbuild hydrogen inland container ship, H2 Barge 1. This will open the doors to a transition to zero-emissions hydrogen power. Other projects include SamSkip Group’s SeaShuttle project, whereby two shortsea feeder container ships will be among the first of their kind globally to be powered by individual 3.2-MW hydrogen fuel-cell-based energy systems. Retrofits can also be seen: Future Proof Shipping has retrofitted its inland container vessel Maas to run on 100% hydrogen – the vessel is successfully running on fuel cells. And the current container ship fleet could be ripe for hydrogen retrofits. According to figures from Nedstack Fuel Cell Technology, 40% of container ships without modification would be eligible for hydrogen fuel cells.
I singled out collaboration as a key trend for 2023 and I am highlighting it again for 2024. Industry collaboration is crucial if the box shipping sector is to accelerate decarbonisation. There have been some very positive moves on this front towards the end of 2023 – which lays the foundations for more work in this area next year, and for further collaborative action. DP World launched its Join the Move to -15°C coalition in December, following a study that suggested frozen food temperatures could be changed by 3°C to save carbon dioxide emissions. The coalition has been joined by leading industry organisations including AJC Group, AP Moller–Maersk, Daikin, DP World, the Global Cold Chain Alliance; Kuehne + Nagel International, Lineage, Mediterranean Shipping Co and Ocean Network Express. DP World is inviting more companies to join. Watch this space.
And of great significance, chief executives of leading global container shipping lines have issued a joint declaration at COP 28 calling for an end date for fossil-only powered newbuilds and urging IMO to create the regulatory conditions to accelerate the transition to green fuels. Top players have joined this line-up, including MSC, Maersk, Hapag-Lloyd and Wallenius Wilhelmsen. Hopefully, this is just the start and more action following this joint declaration will be seen in 2024.
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