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How the IMO’s mid-term measures might shape shipping’s energy choices and transition to e-fuels

Abstract

To help inform that process of finalisation, we have used the current best available evidence to consider a plausible set of scenarios and investigate the competitiveness of different fuel and technology choices within those scenarios based on a total cost of operation (TCO) assessment of a 14,000 teu containership. The discussion and results focus on the extent to which e-fuels can be made competitive early in the transition (e.g. the period 2027-2035), relative to alternative low emission fuels and technologies. Unlike e-fuels, these are not expected to be dominant contributors to shipping’s energy demand in the long run, whether because they will not be compliant with the increasing stringency of a global fuel standard (e.g. LNG, blue ammonia and CCS) or because they are not scalable and thus unlikely to be as competitive as e-fuels as demand grows (e.g. biofuels).