The market for shipping
One third of all decarbonization projects in shipping is focused on utilizing hydrogen as a low-carbon fuel source
Problem We're Looking to Solve:
The international shipping industry is facing a pressing need to combat climate change by transitioning towards hydrogen adoption. Historically, over 99% of the sector's energy demand has been met by oil-based fuels, contributing significantly to carbon emissions. To align with the Net Zero Scenario and mitigate environmental impact, alternative fuels such as biofuels, hydrogen, ammonia, and electricity must play a more prominent role in the maritime sector's energy mix.
Financial Impact:
In 2022, international shipping accounted for approximately 9% of global CO2 emissions,and 25% of all global emissions from the transportation sector, highlighting the urgency for decarbonization efforts. Progress has been made globally with emissions regulations and the development of technologies aimed at decarbonizing shipping. Regions such as Europe, the U.SNorway, Japan, China, and Korea have made significant strides, implementing emissions reduction strategies, taxation incentives, and ambitious targets to address environmental concerns. Costing shipping companies billions in fees as they try to find solutions to combat climate change as well as lofty goals from the nations around the world.
How It Can Be Solved:
Achieving the International Maritime Organization's net zero emissions target by 2050 requires a multi-faceted approach. This includes implementing legally binding measures, fostering technological innovation, enacting supportive policies, and fostering collaboration across the value chain. Key strategies involve scaling up low-emission fuels to represent almost 15% of total energy demand by 2030, as outlined in the Net Zero Scenario. The trend towards alternative fuels is evident in new ship orders, with over 200 pilot projects focusing on zero-emission vessel technologies underway. Additionally, establishing bunkering infrastructure for alternative fuels is essential to facilitate widespread adoption. Policy developments such as the International Maritime Organization's revised GHG emissions strategy, the EU ETS reform, and the FuelEU Maritime initiative are crucial in driving progress. International collaboration at events like COP26 and COP27 has further spurred initiatives aimed at creating zero-emission shipping corridors. Furthermore, private sector initiatives, including Cargo Owners for Zero Emission Vessels and the Getting to Zero Coalition, are pivotal in promoting shipping decarbonization strategies. In conclusion, the international shipping industry stands at a pivotal juncture, with concerted global efforts, regulatory frameworks, and private sector initiatives converging towards widespread adoption of hydrogen and low-emission fuels to achieve decarbonization goals and combat climate change.
How It Celadyne can Solve it:
As outlined in a 2021 study by the Global Maritime Forum, which examined 106 projects, it was found that nearly a third of these initiatives focus on utilizing hydrogen as a low-carbon fuel source. Hydrogen emerges as the clear leader among alternative fuels, with several premier pilot projects slated for launch in 2024. The primary obstacle hindering widespread adoption currently lies in the price of hydrogen and the durability of the fuel cells powering ships.
Celadyne's cutting-edge technology addresses this challenge, making adoption feasible. With our state-of-the-art technology, we are poised to lead the charge in facilitating this transition both on the demand and supply side. At scale, we not only provide the technology necessary to power ships with durable fuel cells, but also produce affordable green hydrogen as a drop-in enablement for existing electrolyzer systems, ensuring long-lasting performance which can not be matched by industry competitors. This positions us to meet the Department of Energy's goal of achieving $1 per unit of hydrogen by the end of 2031.
