The report titled Cost of zero-emission container freight Shipping A study on some deep-sea and short journeys shows a big difference in cost between old fossil fuels and modern zero-emission fuels (ZEF). It also points out the problems of changing routes, as well as how to possibly make it happen. Revealed at COP28, the study stressed how important it is for early movers and policy help to increase making zero-emission fuels on a bigger scale.
Cost Dynamics and Transition Challenges
The study shows the yearly cost of zero-emission container ships, explaining how much it costs per box for Both transpacific and coastal boats under different fuel choices. In 2030, there will be a big price difference. Estimates say green ammonia could cost $150 to $350 per TEU and green methanol might cost between $210-$450 per TEU. The first problems when changing to a new system are high operating costs, needing big extra expenses and promises from the people involved.
Importance of Early Movers and Policy Help
The report shows how important it is for early starters like cargo owners to create a market where there are no emissions from shipping. With a willingness to pay for differences in cost and add supply signals, stakeholders can start the increase of SZEF production. The US IRA and EU ETS are examples of policy support designed to narrow the cost difference. The 5-10% zero-emission fuel goal set by the International Maritime Organization (IMO) for 2030 creates a governing structure. The time for companies to act before rules get tight is short, showing the need for partners in the industry and doing things ahead of time.
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Source: Offshore energy
