A California NGO report on two separate studies in California that offer policy and technology reviews of the current maritime energy transition has suggested the US state align its maritime emissions policy with that of the EU
UC Berkeley’s Goldman School of Public Policy and Energy & Environmental Research Associates (EERA) co-released two reports on shipping decarbonisation that delve into policy changes and technology to decarbonise ocean-going vessels
The Berkley report is a survey of the different policy options from around the world that focus on decarbonising maritime operations while the EERA report provides a technology review of low and zero-greenhouse gas (GHG) marine fuels and supplemental power systems describing the decarbonisation potential, costs, technology parameters, safety, and infrastructure and the potential for sustainable marine fuels.
Pacific Environment, the NGO that commissioned these studies, is aiming a lobby at the California government, suggesting the potential for the state to enact regulation that would align the state’s goal on maritime decarbonisation with the EU.
EERA’s report outlines a three-stage transition towards net zero emissions in the maritime sector, emphasising the role methanol and ammonia could play as hydrogen carriers. The number of methanol-fuelled and methanol-ready vessels is set to increase significantly with nearly 300 active vessels over the next five years, and with ammonia engines arriving on the market, the orderbook for ammonia-capable ships is also likely to expand.
However, there remains a sizable gap between maritime energy requirements and projected production of these low-carbon fuels.
Policy Recommendations
The Pacific Environment report has a number of policy suggestions for US federal and state governments, and the report cites California’s past emissions regulation as precedent for the state’s ability to affect change.
California was among the first to require low sulphur fuel and emission controls for ships, action that later inspired international emission controls.
The report’s authors note that the 2014 Ocean-Going Vessel At Berth regulation, applicable to container and cruise vessels, was expanded in 2023 to require use of shore power, or other emissions control strategies at California ports for all major vessel types.
Among the recommendations is the suggestion that California create financial incentives to produce and use zero or low-carbon maritime fuels through Low Carbon Fuel Standards.
There are currently no zero carbon fuels suitable for large ships produced on the West Coast of the United States but supply infrastructure is critical to the success of any hope ofculling emissions long-term.
The cost of production of these fuels though remains prohibitively high. A study by the Global Maritime Forum (GMF) looking at the commercial viability of projects like an attempt to build a Nordic-based concept for an ammonia-powered gas carrier vessel, found that first movers in building and fuelling ammonia-powered vessels could bear a heavy cost burden.
Nevertheless, the EERA report believes California is uniquely positioned to take advantage of hydrogen production at scale. The state has been selected as a regional ‘hydrogen hub’ and is earmarked to receive up to US$1.2Bn from the U.S. Department of Energy to accelerate the production and deployment of hydrogen.
In addition, the state is vital to global trade. California alone accounts for a GDP of US$3.9Tn. Its twin ports of Los Angeles and Long Beach are the busiest seaports in the Western Hemisphere and combined with other California ports handles about 40% of containerised imports into the United States and 30% of all US containerised exports.
David Wooley, Director of the Environmental Centre, Goldman School of Public Policy, University of California, Berkeley called on the US federal government and the California government to accelerate efforts to reduce emissions from ships.
“This will increase momentum for action by the US Environment Protection Agency (EPA) and the International Maritime Organisation. We call on California to gradually transition ships operating in its waters to zero or near zero emission fuels,” he said.
Pacific Environment concluded “These co-released reports show that technologies are available to accelerate this transition and highlight the rising tide of decarbonisation policies and regulations. We call on the State of California and the federal government to be climate leaders on marine air pollution and to adopt the Reports’ policy recommendations needed to decarbonise shipping by 2040."
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