Alternative fuels will ensure the competitiveness of shipping

Shipping is of crucial importance to the global economy. Yet it is under immense competitive pressure – while also facing strongly growing demands to become more sustainable at the same time. These circumstances have prompted the European Commission to initiate a legislative process aimed at a long-term reduction of the emissions generated by shipping known as the FuelEU Maritime Regulation, which was presented in July 2021 as part of the “Fit for 55” package. In particular, synthetic, climate-neutral fuels, such as eFuels, will be able to play a decisive role in these efforts. 

The eFuel Alliance and the Maritime Platform recently discussed all the potential in this field at a joint event. The large amount of interest attracted by this event shows just how important this topic is. In addition to the extensive possibilities of defossilisation, the main focus was on implementation-related issues. The discussion showed that eFuels will be indispensable for climate-neutral shipping and that a mix of different eFuels is necessary to take account of the diversity of the shipping industry. 

While speaking about this issue, Ralf Diemer, Managing Director of the eFuel Alliance, stressed the need for a comprehensive legal framework. “We need clear legal requirements for shipping – and we need them soon,” he said. “This is the only way to ensure security of investment and adequate production capacities at an early stage.” Diemer therefore also welcomes the preliminary results of the European Parliament’s vote to establish sub-quotas for eFuels, adding: “The European Parliament has recognised the potential of eFuels. All three of the committees involved were clearly in favour of a sub-quota for eFuels. Now that minimum quantities have been set for the shipping industry, all impacted parties will enjoy planning security and be able to focus on targeted implementation.” 

“Shipping is the backbone of the global economy, and there’s no way around it,” noted Tessa Rodewaldt, Managing Director of the Maritime Platform. “In addition to climate protection, climate-neutral shipping will also make a significant contribution to economic growth, innovation and prosperity. The use of alternative fuels will be indispensable for the maritime energy transition – but different types of application will require different types of fuels. Climate-friendly shipping will find itself again in a ‘multi-fuel’ world based on green hydrogen and renewable energy. This needs to be taken into account through the appropriate legislation.” In addition, she stressed: “What the shipping industry urgently needs now is long-term security for both planning and investment – and therefore legislation at the EU level that fosters and drives a technology-neutral market ramp-up for alternative fuels for all segments of shipping.”  

In the week of 17 October, the European Parliament will make a final decision on sub-quotas for alternative fuels in the maritime sector. With this in mind, the eFuel Alliance and the Maritime Platform are calling for a clear choice in favour of ambitious quotas for eFuels as well as adequate support mechanisms to take the goals of sustainability and competitiveness into consideration in equal measure.