Alternative fuels fatigue

It really is feeling like a modern-day version of Hans Christian Andersen’s classic folktale of The Emperor’s New Clothes.

As the world tries to race toward a lower carbon future, the shipping industry finds itself at a crossroads. With proposals flying in from all directions—methanol, ammonia, and electrification among them—there’s a sense that we must rapidly transition to these so-called “cleaner” fuels. Yet, this transition is not as simple, nor as beneficial, as many would like to believe. In fact, the industry would be wise to slow down and re-examine the very solutions being thrust upon it. Rather than blindly adopting these perceived lower-carbon fuels, shipping may find that its future is better served by more robust and nuanced approaches, such as carbon capture, offsetting, and even a nuclear evolution.

The Risks of Methanol and Ammonia

Methanol and ammonia have both been lauded as alternative fuels capable of decarbonising the shipping industry. However, their purported environmental benefits are not without significant drawbacks. Methanol, though hailed as a low-carbon fuel, is often derived from natural gas, making its true sustainability questionable. Even so-called “green methanol,” produced using renewable energy, still faces inefficiencies and challenges in scaling up. There’s also the challenge with handling and storing much lower flash point fuels than we are used to. The production of ammonia also faces hurdles, primarily because it’s currently manufactured using the Haber-Bosch process, which is highly energy-intensive and often relies on fossil fuels.

Moreover, both methanol and ammonia pose serious risks in terms of toxicity and safety. Ammonia is a hazardous chemical that can cause severe harm to human health if leaked into the atmosphere or water. Introducing these fuels into the shipping ecosystem might reduce carbon emissions, but the environmental trade-offs and potential disasters could outweigh the benefits.

The False Promise of Batteries

Battery-powered ships may seem like the ultimate solution, but this narrative conveniently overlooks a much darker reality. Batteries, especially those required for large-scale maritime operations, rely on lithium, cobalt, and other rare minerals. Mining for these resources is often fraught with environmental degradation and human rights abuses, particularly in developing countries where regulations are lax. In many ways, the extraction of these materials is arguably more ethically questionable than drilling for oil and gas. The shift to batteries merely exchanges one form of environmental exploitation for another.

Additionally, batteries are not a recyclable resource in the same sense that conventional fuels are. Just as electric vehicles are showing their limitations in terms of sustainability, so too will battery-powered ships. Disposing of these batteries creates yet another environmental challenge, piling onto the already significant waste generated by other industries. So, are we truly advancing the green agenda by adopting battery technology, or are we simply passing the environmental buck?

Carbon Capture: A More Practical Solution?

Rather than chasing after new fuels that may solve one problem only to create others, the shipping industry could focus more on carbon capture and offsetting. Technologies already exist to capture carbon emissions at the source and even scrub carbon from the atmosphere. These methods offer a way to continue utilising existing infrastructure and fuels while significantly mitigating environmental impact. Carbon capture also avoids the extensive overhauls required to retrofit the global shipping fleet for alternative fuels.

Offsetting carbon emissions by investing in reforestation or carbon credits could be another tool in the industry’s belt. While critics may argue that offsetting merely shifts responsibility, it remains a tangible, immediate solution to reducing net emissions. These methods provide a bridge to a cleaner future without rushing into untested technologies or fuels that could do more harm than good.

Nuclear: The Evolution Shipping Needs

If the shipping industry is serious about decarbonisation, there is one option that stands above all others in terms of economic efficiency and environmental sustainability: nuclear power.

Our research signals that this should become a reality first choice for large and power-hungry seagoing vessels by Small Modular Reactors, SMRs, while medium and small vessels could benefit from micro reactors.

Nuclear energy is, by far, the cleanest and most reliable form of power available today. The stigma surrounding it—largely due to legacy concerns about safety—should no longer be an excuse for ignoring its potential.

Generation IV Reactors present an opportunity for the shipping industry to power vessels with quasi zero emissions, without the same safety concerns traditionally associated with grid scale nuclear reactors. Generation IV reactors are inherently safe (either passively safe or fail safe) making catastrophic accidents virtually impossible. The selection of Generation IV reactors takes advantage of unpressurised cores that drastically increase safety even further.

Imagine a fleet of ships powered by nuclear energy, traversing the world’s oceans emitting not a single ounce of either carbon dioxide or pollutants. This is not science fiction; it’s a real possibility.

The shipping industry - the workhorse of the global economy - is already, by far, the cleanest & most efficient transport method available – just compare it with air, rail or road on a per ton per mile basis.

By going nuclear, shipping can go from being the cleanest to being virtually emission-free.

Moreover, nuclear can empower shipping to sail at substantially higher speeds – meaning less ships required, less congested waterways and far less carbon generation throughout the lifecycle.

The Path Forward

It’s time for the shipping industry to pause and reconsider the path it’s on. Methanol and ammonia might seem like quick fixes, but their hidden costs are too high. Batteries, while promising, come with a slew of ethical and environmental concerns that make them more of a stopgap than a solution. Instead, the industry should double down on carbon capture, offsetting, and exploring nuclear power as the true long-term answer to sustainable maritime transport.

Shipping is too crucial to the global economy—and too efficient a mode of transport—to gamble on unproven or incomplete technologies. Let’s ensure that whatever solutions we adopt are not just greener on the surface but truly sustainable for the future.