Blog Post
Shell report on decarbonising the shipping sector
Jul 08, 2020
Shell together with Deloitte Netherlands and Deloitte UK today published joint research outlining industry perspectives on decarbonising the shipping sector. The “Decarbonising Shipping: All Hands on Deck” report provides views of senior shipping executives from across the sector. The report presents a roadmap of solutions to help the industry meet the International Maritime Organization’s (IMO) ambition to reduce carbon emissions.
Excerpt below from the report:
Liquefied Natural Gas (LNG) LNG is 20 to 25% less carbon intensive than Heavy Fuel Oil (HFO), and emits less nitrogen oxides (NOx) and sulphur oxides (SOx).
The prevailing view among interviewees is that LNG will have a role to play as a transition fuel in the next decade. As an executive at a global bulk ship owner and operator said; “It took many years for LNG to become viable, it is the only alternative we have today, and it will get us under the 2030 IMO target.”
These interviewees pointed out that LNG adoption is increasing, and some ship owners are in the process of taking on LNG-powered ships to reduce emissions. Others were more reserved about the role of LNG, pointing out that it will be insufficient to meet the 2050 ambition, carries the risk of methane emissions in the supply chain and that it may distract the industry from investments in zero-emission fuels.
“We know that shipping is one of the harder sectors to decarbonise, which is why we are working with our customers and the wider industry to identify possible solutions,’’ said Huibert Vigeveno, Downstream Director of Shell. “This report shows the urgent effort required by industry to reduce carbon emissions. It stems from Shell’s own ambition to be a net-zero emissions energy business by 2050 or sooner. To achieve that, we need to work with our customers.”
The Decarbonising Shipping: All Hands on Deck report can be downloaded at the Shell website here.
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