The percentage greenhouse gas reduction of a fuel matters - there are significant differences between “green” fuels when it comes to carbon emission reductions.
E-methanol greenhouse gas reduction also differs project-to-project. -90% emission reduction is for an ETFuels e-fuels project.
As targets increase, significantly more alternative / green fuel is required… particularly for those fuels which don't achieve significant decarbonisation.
By 2035, a fleet would need to be converted to >90% LNG to be compliant, and 5 years later those same ships that were just bought would pay penalties.
It is worth taking into account that when you change fuel, you often need new vessels too… and for fuels where a large switch is needed, CAPEX implications can be significant.
ETFuels evaluated the business case for different fuels by comparing the
total cost of ownership of running different fuel strategies over a 15 year period. Our conclusion was clear - e-methanol is a compelling economic choice for shipowners, starting from 2030.
Contact us to learn more about what this might mean for your portfolio.
The full business case for e-fuels can be found
here.
