Tangible Advances Made in New Fuel Maturity Since 2022

November 27, 2024

The Maersk Mc-Kinney Møller Center for Zero Carbon Shipping has released an updated version of its Fuel Pathway Maturity Map, providing an overview of key alternative fuels that are expected to play a pivotal role in decarbonizing the maritime industry by 2050.

The map provides an independent assessment of readiness of key parameters across the various alternative fuel pathways that are expected to play a role in decarbonization of the global maritime industry. The update highlights the progress made since 2022.

© vladsv / Adobe Stock
© vladsv / Adobe Stock

“This update counters the prevailing narrative that maritime decarbonization is at a halt. The progress captured in the Fuel Pathway Maturity Map demonstrates that the technical side of the industry is on the right path, with tangible advancements in key areas. This should enforce confidence in the green transition in stakeholders across the value chain,” says Christoffer Lythcke-Elberling, Head of Transition Modeling & Analytics.

The past two years have seen significant advances, driven by increased investment in dual-fuel vessels and pilot projects across the fuel landscape. Notable progress includes:

• Ammonia: Pilot projects have advanced onboard energy storage and fuel conversion technology, bringing ammonia closer to maritime readiness.

• Methanol: Rapid growth in the dual-fuel methanol vessels coming into the market has driven advancements in global storage, logistics, bunkering infrastructure, and bio-methanol production using bio-methane as a feedstock.

• Bio-methane: Biogas-based production technologies are maturing, with large-scale plants now operational.

• Bio-oils: Pyrolysis oil production technology has improved, though further work is needed to achieve commercial viability for shipping.

• Renewable diesels (new pathways): E-diesel and bio-diesel have been introduced as additional viable options, reflecting the expanding landscape of sustainable maritime fuels.

While technological strides have been made, the Fuel Pathway Maturity Map underscores the urgent need for continued innovation and regulatory alignment.

“With the technological advancements outlining the path forward, regulators have a crucial opportunity to take bold steps. The tools and knowledge are in place for regulatory frameworks that will accelerate the transition—now is the time to act,” says Torben Nørgaard, Chief Technology Officer - Energy & Fuels.

The Center has also examined the feasibility of a goal-based fuel standard. Its modelling and research indicates that given the significant gap between the price of fossil fuels and sustainable alternatives, the penalty in the standard should be big enough to incentivize use of sustainable fuels and energy -  at least $450 per tonne of GHGs. Non-compliance costs should remain at least this level through to 2050 to make sustainable alternatives economically viable throughout the transition.

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