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FEATURE:
Shipping’s Headwinds – The Drivers for Decarbonisation
The series of cleaner bunker fuels specifications implemented by the IMO since 2005 have concentrated on removing sulphur oxides from ship emissions. This was do-able with cooperation from the refining industry, which has been progressively reducing the sulphur content in other refined products long before attention turned to marine fuel.
It is also worth noting that fluctuations in oil prices or even major world economic cycles did not have any influence on the IMO’s march towards cleaner marine fuels, as the chart below shows.
However, the next stage in IMO’s ambitions, namely decarbonisation of shipping fuel, may need solutions outside the fossil fuel industry, specifically in technology. Not surprisingly, the oil industry has not shown much interest in the next phase of the marine fuels journey.
The (second chart) shows the US Energy Information Administration’s forecast of high sulphur fuel oil, low sulphur fuel oil and low sulphur marine gasoil continuing to dominate the country’s bunker fuel market all the way to 2050 in similar proportions to this year – something that may be completely incompatible with the IMO’s decarbonisation target.
Speakers: Douglas Raitt, Regional Advisory Services Manager for Asia, Lloyd's Register, Vandana Hari, Founder & CEO, Vanda Insights, Sameer Mohindru, Senior Editor, S&P Global Platts all joined panel moderators Mark Florance Energy & Utilities and Sustainability Committees and Tim Rockell Chairman, Energy & Utilities Committee.