E-Fuels projected to be available for next Zero Emission Maritime Buyers Alliance (ZEMBA) tender
E-Fuel Ships May Start Sailing by 2027, Says New Report
A new report from the Zero Emission Maritime Buyers Alliance (ZEMBA) and Lloyd’s Register suggests that ships running on e-fuels could be available for commercial use by 2027. The report also highlights a current imbalance between the supply of e-fuels and the number of ships that can use them.
The report, released on October 3, 2024, is based on data collected from a market survey earlier this year. It shows that enough e-methanol and e-methanol-powered container ships may be ready by 2027. This aligns with ZEMBA’s plan to include e-fuel services in its next shipping tender, set to launch in early 2025.
Push for Green Shipping
ZEMBA President and CEO Ingrid Irigoyen emphasized the importance of adopting these new fuels quickly. “We need to speed up the use of hydrogen-based e-fuels if the maritime sector is to achieve full decarbonization by 2050,” she said. ZEMBA is working to support companies that want to reduce their carbon emissions by using ships powered by e-fuels.
In ZEMBA’s first tender, held in April 2024, global shipping company Hapag-Lloyd won the contract. The goal was to cut at least 82,000 metric tons of CO2 emissions by 2026. ZEMBA hopes to build on this success with its next tender, which aims to buy services powered by e-fuels like e-methanol.
Survey Results and Industry Readiness
Almost 50 shipping companies and fuel providers participated in the survey. The survey aimed to find out if the shipping industry is ready to use e-fuels like e-methanol, e-methane, and e-ammonia. Most respondents believe that e-fuels could be in use by 2027 or 2028, though limited availability could begin as soon as 2026.
The survey also found that e-methane ships are available now, but no major projects are currently producing e-methane fuel. On the other hand, e-ammonia fuel production is expected to meet future demand, but ships capable of using this fuel will likely not be ready by 2027.
E-Methanol: The Likely Path Forward
According to the report, e-methanol seems to be the most promising fuel for ZEMBA’s next tender. By 2027, both e-methanol fuel and ships capable of using it should be available. However, there are still concerns. Many e-fuel projects are in early stages and may not meet production deadlines. This raises questions about whether ships that can run on e-fuels will actually have access to them.
Challenges to Overcome
ZEMBA’s first tender also highlighted a common challenge: just because a fuel project is announced doesn’t mean it will be ready on time. In the first tender, ZEMBA did not receive any bids from ships powered by e-fuels. The next tender aims to encourage ship operators and fuel producers to sign long-term contracts for e-fuels, which could boost production.
Looking Ahead
ZEMBA is preparing for its next tender, expected in early 2025. They plan to release more details by the end of 2024. The tender will focus on buying e-fuel-powered services to help reduce carbon emissions in shipping. ZEMBA is also looking for more companies that want to join their effort to create a zero-emission shipping market.
The full report from ZEMBA and Lloyd’s Register can be found online, offering more insights into the future of e-fuels in the maritime sector.
