REGULATION
FUELLING SHIPPING’S ENERGY TRANSITION
Credit: GAC Group
Shipping is in the midst of a necessary, albeit challenging, transition, says the GAC Group
The need to switch to more sustainable fuels and reduce the sector’s greenhouse gas (GHG) emissions is now a key operational consideration across every segment of the industry, from shipowners, to ports and the vessels themselves. With no silver-bullet solution for radically reducing GHG emissions across shipping supply chains, and particularly for fuelling vessels of all types, the maritime industry must rely on collective efforts to reduce emissions across the board and transition towards a sustainable future. The rapid development of ‘greener fuels’, such as hydrogen, ammonia, LNG and bio-methanol, as well as innovative technological solutions, are helping to build the foundations for this transition. However, these developments are still in the early stages and real-world applications remain small scale. The International Maritime Organization (IMO) aims to halve the total annual GHG emissions from international shipping by 2050. To meet this target, there needs to be a major upscale in terms of infrastructure, investment and incentives. Alternative fuels push The GAC Group is looking to play a proactive role in this market transition. The global shipping and logistics services provider is present at thousands of ports in more than 50 countries, working with vessels, shipowners, ports and bunker suppliers to keep ships moving.
22 | SUMMER 2022
8 The majority of ships today still run on traditional bunker fuels, so ports and bunker suppliers still have to cater to those vessels
Fuel suppliers require a guaranteed demand to fund their projects, and customers must know what supplier projects are underway to plan their future procurement. “As an intermediary between shipowners and fuel suppliers, GAC has the expertise and knowledge to communicate and meet the needs of both parties while helping them achieve progress in their respective sustainability journeys,” says Nicholas Browne, global director of GAC Bunker Fuels, the marine fuel and lubricant procurement arm of the GAC Group. “As shipping becomes more environmentally conscious, it is important for us to partner local bunker suppliers to offer alternative fuels such as LNG, methanol, hydrogen, ammonia and biofuel for our customers.” However, as alternative fuels continue to develop and become a more viable option for a greater number of vessels, there is the added challenge of catering to the volume of options currently available to shipowners. Herman Jorgensen, managing director of GAC United Kingdom (UK), says: “One of the most complex problems we face at the moment is that there are so many different types of fuels being developed while a whole host of new vessel types are being designed.” He adds: “There’s no number one choice at the moment. Our customers are driving their own development of fuels including LNG and hydrogen. We have to be adaptable to their needs and that means having the network in place to be able to service any type of vessel with any type of fuel anywhere in the world.”
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