- Zemba plans to launch a tender in January 2025 for e-fuel-powered container shipping contracts, with services beginning in 2027 and contracts lasting three to five years.
- The initiative aims to reduce emissions by at least 90%, aggregating 80 billion tonne-miles of demand to drive the adoption of e-fuels in the maritime industry.
- By pooling demand from freight buyers, Zemba seeks to create a market for e-fuels, encouraging carriers to offer zero-emission shipping solutions and supporting global climate goals.
- The tender follows a previous initiative won by Hapag-Lloyd using bio-LNG, highlighting Zemba’s evolving focus on scalable and long-term sustainable shipping practices.
The Zero Emission Maritime Buyers Alliance (Zemba) has announced an innovative strategy aimed at significantly reducing emissions in the container shipping industry. With plans to pool at least 80 billion tonne-miles of demand, Zemba seeks to catalyze the adoption of e-fuels starting in 2027, reports Lloyd’s List.
A New Era of Green Shipping Contracts
Zemba intends to launch its next tender for green shipping services in January 2025, focusing exclusively on e-fuel development. This move represents a shift towards creating a sustainable market for zero-emission container shipping. The group plans to establish three- to five-year contracts with carriers, requiring bids to demonstrate a minimum 90% reduction in primary propulsion emissions.
The organization is open to proposals from both individual carriers and consortia, aiming to incentivize the adoption of scalable e-fuel solutions. By facilitating these contracts, Zemba aims to address the lack of willingness among customers to pay a premium for zero-carbon shipping services.
Advancing Climate Goals through Collective Action
Zemba’s initiative reflects its commitment to supporting freight buyers in achieving their 2030 and 2040 climate targets. Ingrid Irigoyen, Zemba’s CEO, highlighted the significance of this move, emphasizing the willingness of members to make multi-year commitments to foster new markets for e-fuels.
The alliance, comprising 40 freight buyers, envisions aggregating demand equivalent to 1.4 million TEUs carried across trans-Pacific routes. This would pave the way for the widespread use of e-fuels, addressing critical challenges in scaling up sustainable shipping practices.
E-Fuels: The Future of Scalable Solutions
E-fuels, such as ammonia, methane, and methanol, are produced by combining hydrogen extracted from water with either nitrogen or captured carbon. While costlier than biofuels, e-fuels are considered easier to scale in the long term. The primary challenge lies in the hesitancy of fuel producers to invest in expensive fuels without assurance of market demand.
Zemba’s strategy aims to mitigate this uncertainty by pooling demand from freight buyers committed to decarbonizing their supply chains. This approach not only incentivizes carriers to adopt green shipping solutions but also ensures the availability of e-fuels for large-scale operations.
Building on Initial Success
Earlier this year, German liner Hapag-Lloyd won Zemba’s first tender by leveraging bio-LNG derived from waste. However, no bids were received for e-fuels during this initial phase, prompting Zemba to prioritize e-fuel development for its upcoming tender.
By addressing the challenges associated with e-fuel adoption, Zemba is striving to lay the groundwork for a zero-carbon shipping industry. This initiative represents a significant step towards achieving global decarbonization goals while fostering innovation and collaboration in maritime logistics.
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Source: Lloyd’s List
