Low carbon sea freighters in search of sustainable power solutions

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  Quantumrun Foresight
• March 3, 2022

Insight summary

The maritime industry is steering a course towards a greener future, with the emergence of electrically powered cargo ships and initiatives to curb carbon emissions. From battery-operated container barges to electrically powered docking stations, these advances could significantly reduce the industry's carbon footprint. However, the transition also implies several implications, including industry-wide technological adaptations, potentially high initial costs, and long-term operational changes.

Low carbon shipping context

The maritime industry, responsible for a significant portion of global carbon emissions, is embarking on a journey towards a greener future. Traditionally seen as a challenging sector to reform, shipping accounts for roughly two percent of global carbon emissions—a figure that could potentially rise to 15 percent without appropriate measures. However, industry stakeholders, under the aegis of the International Maritime Organisation (IMO), have made a commitment to reduce carbon dioxide emissions from shipping by 50 percent by 2050.

This ambitious goal has spurred a wave of innovation across the industry. Ships are being redesigned and restructured to reduce reliance on petroleum-based fuels. Charging stations for electric ships are being developed, along with on-board container batteries, fuels derived from liquified natural gas, and hybrid vessels. These initiatives are reshaping the maritime landscape, pushing the industry towards a more sustainable future.

In a pioneering move, Dutch shipbuilder Port Liner has already deployed electric container barges for inland shipping. These barges, which are powered by carbon-free energy provider Eneco, are designed to operate without a crew or an engine room, allowing more space for cargo. Meanwhile, the Port of Montreal has initiated a shore power project that allows docking cruise vessels to be powered by electricity.

Disruptive impact

Since the signing of the Paris Agreement in 2016, global environmental policies have grown increasingly stringent. The shift towards low-carbon shipping is a part of this broader movement, and its environmental impact is likely to be significant. The maritime industry's transition to green energy, potentially through a hybrid approach combining batteries and fuel, marks a pivotal point in its environmental journey.

The shift towards sustainable shipping could also create new opportunities within the industry. Engineers and shipbuilders might see a surge in demand as companies search for technologies and solutions to make their fleets more environmentally friendly. While the initial transition could come with high costs, the long-term benefits could include reduced operational expenses.

Furthermore, the impact of sustainable sea freight could extend beyond the maritime industry. It could lead to a decrease in road freight, as many trucks currently run on diesel. As the maritime industry makes strides in sustainability, it could prompt a ripple effect of environmental consciousness across the transportation sector.

Implications of low carbon shipping 

Wider implications of low carbon shipping may include:

• Cruise liners reducing costs and contributing to a more sustainable travel and tourism industry.
• Reduced environmental impact of sea patrol vessels and work ship.
• The development of new engineering solutions and technologies for greener shipping.
• A decrease in road freight, contributing to lower carbon emissions in the transportation sector.
• A shift in industry training and education to equip the workforce with skills needed for the green transition.
• A review of regulatory frameworks to accommodate the rise of low-carbon technologies.
• More investments in renewable energy infrastructure at ports.
• Raising public awareness about the environmental impact of shipping and the industry's efforts towards sustainability.

Questions to consider

• Is enough being done to ensure that the shipping industry reaches its carbon reduction goals by 2050?
• Which other sources of renewable energy, if any, can be used to power shipping vessels?