New data shows future-fuel demand for shipping industry equal to entire current global production of renewables - International Chamber of Shipping
New data released today has revealed how the global shipping industry will require the equivalent of the world’s entire current renewable energy demand in order to replace fossil fuel use, according to International Chamber of Shipping's release.
To reach the industry’s 2050 (net) zero goal, shipping’s fuel needs would require electricity from renewable sources to increase by up to 3,000 TWh, the report showed. This is the equivalent of the entire world’s current renewable energy production.
It found that to achieve the IEA’s Net Zero Emissions by 2050 scenario, the world would need an 18-fold increase in existing renewable production capacity.
Taking the global trading of hydrogen as an exemplar, the report identified substantial potential benefits for exporting and importing countries, particularly in the Global South. This is due to the expected production cost differentials of such fuels across the world (expected range of €72.60/MWh to €156.40/MWh in 2050).
The cost range reflects the abundance of renewable potential, such as solar and wind power, in many African and Latin American countries, which can generate the electricity needed in the production of hydrogen fuels at much lower cost.
The report identified the first movers who are looking to seize these investment opportunities, including Germany, Algeria, and Chile, who have signed multiple bilateral agreements on the production of hydrogen fuels (seen as key for powering ships).
Unveiled at the World Ports Conference in Vancouver, Canada, ‘Fuelling the Fourth Propulsion Revolution’ urgently calls for increased R&D in green fuels, and to specifically develop production infrastructure in key geographic locations such as Latin America and Africa.
Estimates show a production potential of more than 10,000 TWh for (net) zero carbon fuels in coastal regions worldwide. Shipping views investment in these areas as key to helping countries realise the potential gains present in their bilateral agreements.
Up to this point, there continues to be a lack of investment in zero-emission technologies, with the IEA highlighting that the total amount of corporate R&D investment for maritime has decreased, from $2.7 billion in 2017 to $1.6 billion in 2019.
Yet by 2050, at least half of (net) zero fuels traded globally are expected to be moved by ships, according to the International Renewable Energy Agency (IRENA). Today’s report indicates that this makes maritime a key enabler of the decarbonisation of land-based industrial sectors.
The International Chamber of Shipping (ICS) is the principal international trade association for merchant shipowners and operators, representing all sectors and trades and over 80% of the world merchant fleet.
