Why port readiness for alternative fuels is stalling

Why port readiness for alternative fuels is stalling

The maritime energy transition was always going to be expensive and difficult for shipping and ports alike. The seismic shift from a single fuel type to multiple possible fuels, for example; LNG, methanol, ammonia and hydrogen – means progressive investment in infrastructure as supply grows and owners consolidate around a preferred fuel type.

The majority of the shipping industry continues to express a desire and a willingness to continue the process of decarbonization. The long-term goals set out by the International Maritime Organization (IMO) in its Net Zero Framework hinge on creating a level playing field for global regulation and providing a signal to green fuel producers that demand would move toward greater predictability.

The decision to delay adoption of the NZF for at least one year creates multiple impacts on owners, managers and charterers. But for the world’s ports – those expected to support the energy transition as points of supply – the decision also creates challenges that will ripple through the sector.