ICS backed report issued for COP 27 points to clear message about efforts to support shipping industry at IMO's next environment protection committee in December
Researchers say there will not be enough ships capable of carrying all the hydrogen-based fuel society needs to reach its 1.5 degree ambitions unless much more financing is found for future vessels.
It’s work from the Tyndall Centre at the University of Manchester, UK, which has pointed out what should be glaringly obvious to oil majors and others who are taking a cautious approach to the transition of transportation. If no new ships are ordered that can carry these new energy resources, and do so cleanly then society will have a much harder job in weaning itself off fossil fuels.
The launch of the report, Shipping’s Role in the Global Energy Transition, is of course timed with COP 27 in Egypt, where thousands of lobbyists are trying to sway the hundreds of national representatives at the UNFCCC meeting,
A statement from the report authors, and from the International Chamber of Shipping state.
“The world needs 50-150 million tonnes of low-carbon hydrogen by 2030, but there is a major gap between this and what is planned to date: already-announced projects will only produce 24 million tonnes by 2030, according to the International Energy Authority. Worryingly, only 4% of these projects have a final investment decision. Researchers at the Tyndall Centre called for stronger Government policies to give low-carbon hydrogen producers, shippers and consumers the confidence they need to invest.”
In the same press release co-author Professor Alice Larkin said:
“The report identifies a major role for the shipping sector in this global energy transition, transporting bioenergy, and hydrogen converted into ammonia. It found that the sea-transport of ammonia and bioenergy in the coming decades could match shipments of gas and coal today. However, this would require around 20 large new ammonia carriers a year, to link green hydrogen producers with consumers”.
The report points to the length of time shipbuilders need to build new vessels, especially larger commercial ships for energy transportation. There is also the uncertainty over when engine makers will be able to construct prime movers in sufficient numbers.
The ICS, which represents national shipowner groups around the world, wants to see stronger signals from energy companies and others, notably governments and public funds, about energy projects.
Of course, the more projects there are focusing on hydrogen and biofuel production, the better opportunity some of it will be accessible by shipping as part of its own fuel transition.
“For us to invest, governments need far stronger policies to de-risk green hydrogen production,” Guy Platten, ICS Secretary General is quoted in the embargoed press release. “National hydrogen strategies must include an explicit focus on supporting the transport infrastructure needed for both imports and exports. Industry is ready to respond but we urgently need stronger market signals and infrastructure investment to make this a reality.”
ICS and other lobby groups representing the commercial interest of shipping are in Egypt with other voices trying to ensure that leaders see shipping as taking action. But the move comes also ahead of the next meeting of the marine environment protection committee of the IMO in London in December where member states will not only discuss strengthening the long term ambition, but also how much action will be demanded of shipping, including fuels and efficiency measures.
Also under discussion will be potential market based measures, something the ICS and other industry figures remain cautious about despite public statements of support.
Click here to access the report
Researchers say there will not be enough ships capable of carrying all the hydrogen-based fuel society needs to reach its 1.5 degree ambitions unless much more financing is found for future vessels.
It’s work from the Tyndall Centre at the University of Manchester, UK, which has pointed out what should be glaringly obvious to oil majors and others who are taking a cautious approach to the transition of transportation. If no new ships are ordered that can carry these new energy resources, and do so cleanly then society will have a much harder job in weaning itself off fossil fuels.
The launch of the report, Shipping’s Role in the Global Energy Transition, is of course timed with COP 27 in Egypt, where thousands of lobbyists are tyring to sway the hundreds of national representatives at the UNFCCC meeting
A statement from the report authors, and from the International Chamber of Shipping state.
“The world needs 50-150 million tonnes of low-carbon hydrogen by 2030, but there is a major gap between this and what is planned to date: already-announced projects will only produce 24 million tonnes by 2030, according to the International Energy Authority. Worryingly, only 4% of these projects have a final investment decision. Researchers at the Tyndall Centre called for stronger Government policies to give low-carbon hydrogen producers, shippers and consumers the confidence they need to invest.”
In the same press release co-author Professor Alice Larkin said:
“The report identifies a major role for the shipping sector in this global energy transition, transporting bioenergy, and hydrogen converted into ammonia. It found that the sea-transport of ammonia and bioenergy in the coming decades could match shipments of gas and coal today. However, this would require around 20 large new ammonia carriers a year, to link green hydrogen producers with consumers”.
The report points to the length of time shipbuilders need to build new vessels, especially larger commercial ships for energy transportation. There is also the uncertainty over when engine makers will be able to construct prime movers in sufficient numbers.
The ICS, which represents national shipowner groups around the world, wants to see stronger signals from energy companies and others, notably governments and public funds, about energy projects.
Of course, the more projects there are focusing on hydrogen and biofuel production, the better opportunity some of it will be accessible by shipping as part of its own fuel transition.
“For us to invest, governments need far stronger policies to de-risk green hydrogen production,” Guy Platten, ICS Secretary General is quoted in the embargoed press release. “National hydrogen strategies must include an explicit focus on supporting the transport infrastructure needed for both imports and exports. Industry is ready to respond but we urgently need stronger market signals and infrastructure investment to make this a reality.”
ICS and other lobby groups representing the commercial interest of shipping are in Egypt with other voices trying to ensure that leaders see shipping as taking action. But the move comes also ahead of the next meeting of the marine environment protection committee of the IMO in London in December where member states will not only discuss strengthening the long term ambition, but also how much action will be demanded of shipping, including fuels and efficiency measures.
Also under discussion will be potential market based measures, something the ICS and other industry figures remain cautious about despite public statements of support.
