The Loadstar reports that DNV Maritime’s latest forecast reveals a significant slowdown in shipping decarbonization, with 93% of the global fleet still relying on conventional fossil fuels. CEO Knut Ørbeck-Nilssen noted that the industry’s “methanol happy hour” has ended, as challenges in production and high costs for new fuel capabilities hamper progress.
Shift in Focus to Onboard Carbon Capture
DNV Maritime is now turning its attention to onboard carbon capture, which can reduce CO2 emissions by 20% or more, despite the energy costs involved. The success of this approach depends on the availability of carbon reception facilities in ports, which could significantly contribute to decarbonizing shipping.
Freight Rates Set to Double
DNV projects that shipping decarbonization efforts will lead to a permanent doubling of freight rates, with increases ranging from 91% to 112%. This surge in costs, which will likely be passed on to consumers, reflects the substantial financial impact of the industry’s transition to greener practices.
Methanol’s Decline and the Return of LNG
DNV’s forecast also suggests that enthusiasm for methanol as a marine fuel has waned, with LNG regaining popularity. The shift comes as the industry grapples with the high costs and limited availability of yard space for retrofitting or building new vessels capable of using alternative fuels.
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Source: THE LOADSTAR
