COP29 Spotlight : Höegh Autoliners and Fortescue Lead Call to Fast Track Green Ammonia Fuel Adoption in Shipping

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The Need for Sustainable Shipping

The shipping industry is one of the largest contributors to greenhouse gas emissions, accounting for around 2.5% of global CO2 emissions. As the world grapples with the challenges of climate change, the need for sustainable shipping solutions has never been more pressing. Höegh Autoliners and Fortescue, two prominent players in the maritime industry, are urging global regulators to fast-track the adoption of green ammonia as the marine fuel of choice.

The Benefits of Green Ammonia

Green ammonia, also known as e-ammonia, is a low-carbon fuel that can be produced from renewable energy sources such as solar or wind power. It has several benefits that make it an attractive alternative to traditional fossil fuels:

  • Zero Emissions: Green ammonia produces no direct emissions, making it an attractive option for reducing greenhouse gas emissions from shipping. Renewable Energy Source: The production of green ammonia can be powered by renewable energy sources, reducing the carbon footprint of the fuel. Energy Density: Green ammonia has a high energy density, making it a more efficient fuel than traditional fuels.

    The Sustainable PCTC Fleet

    Höegh Autoliners is a leading player in the pure car and truck carrier (PCTC) industry, with a fleet that is not only efficient but also environmentally friendly. The company’s commitment to sustainability is evident in its Aurora Class vessels, which are designed to transport electric vehicles on all 14 decks. Key features of the Aurora Class vessels include:

    • A capacity to transport up to 6,000 vehicles per voyage
    • A range of 12,000 nautical miles without the need for refueling
    • A top speed of 22 knots
    • A highly efficient propulsion system that reduces emissions by up to 58% compared to industry standards

      • The Benefits of Sustainable Shipping

      The use of sustainable shipping practices has numerous benefits for the environment, the economy, and the industry as a whole. Some of the key advantages of sustainable shipping include:

  • Reduced carbon emissions: By using electric or hybrid vessels, shipping companies can significantly reduce their carbon footprint and contribute to a cleaner environment.

    Shipping companies must adapt to a changing climate by reducing emissions and investing in sustainable technologies.

    We can continue down the path of business as usual, or we can choose a different path that prioritizes sustainability and the health of our planet,” said IMO Secretary-General Kitack Lim in a statement. The IMO is set to make a decision on the implementation of the Carbon Boundary Adjustment (CBA) rule, which aims to reduce emissions from international shipping by 50% by 2050.

    The IMO’s Carbon Boundary Adjustment (CBA) Rule

    The CBA rule is a key component of the IMO’s strategy to reduce greenhouse gas emissions from international shipping. The rule proposes to set a global carbon price for shipping, which would be used to calculate the emissions reduction targets for individual shipping companies. The proposed rule would also establish a global carbon market, allowing companies to buy and sell carbon credits to meet their emissions targets. The CBA rule is based on the principle of “carbon leakage,” which suggests that if one country or company reduces its carbon emissions, others may increase their emissions to take advantage of the lower costs. The rule aims to prevent carbon leakage by setting a global carbon price that is higher than the cost of reducing emissions in any given country or region.*

    The Partnership between Fortescue and Höegh Autoliners

    The partnership between Fortescue and Höegh Autoliners is a significant development in the shipping industry’s efforts to reduce greenhouse gas emissions. The two companies have agreed to work together to develop and implement sustainable shipping solutions, including the use of hydrogen fuel cells and carbon capture technology. The partnership aims to reduce the carbon footprint of shipping by at least 50% by 2050.

    Meeting the 2050 Net-Zero Target for Deep-Sea Transport Requires Decarbonization Strategies.

    The Challenge of Deep-Sea Transport

    Deep-sea transport, which includes shipping and offshore oil and gas operations, is a significant contributor to greenhouse gas emissions. The International Maritime Organization (IMO) has set a target of achieving net-zero emissions by 2050, but deep-sea transport is a major obstacle to meeting this goal.

    The Scope of the Problem

  • The deep-sea transport sector accounts for approximately 3% of global greenhouse gas emissions. The sector’s emissions are primarily caused by the burning of fossil fuels, such as coal, oil, and natural gas. The sector’s emissions are also exacerbated by the lack of effective carbon capture and storage technologies. ## The Need for Decarbonization*

    • The Need for Decarbonization

    To meet the IMO’s 2050 net-zero target, deep-sea transport must be decarbonized. This means that the sector must transition away from fossil fuels and towards low-carbon alternatives.

    Decarbonization Strategies

  • Electrification of ships: One potential decarbonization strategy is to electrify ships using batteries and renewable energy sources.

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