Shippers mull greener bunker alternatives under emissions regulations

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The energy transition is making waves in the global shipping industry.

The International Maritime Organization has proposed new rules to reduce emissions, and shipping companies are seeking alternatives to sulfur-heavy bunker fuel.

The new regulations will require large ships to cut greenhouse gas emissions every year starting in 2028. 

One potential alternative for traditional bunker fuel is ammonia, and its adoption is accelerating. Maritime registrar DNV says sustainably produced ammonia could substitute 1.4 million metric tons of oil per year. 

Biofuels are another option as a transition fuel. 

In Asia, bunker companies are setting up infrastructure to deliver “green” methanol- and biofuel-blended bunkers to customers. 

But biofuel and ammonia options have downsides – ammonia is highly toxic, and both are much more expensive than traditional bunker fuel.

Plus, low-carbon fuel supply could bottleneck in the future as other sectors also race to decarbonize. 

Ultimately, the IMO wants to cut emissions twenty to thirty percent by 2030, and seventy to eighty percent by 2040. It will take creativity, commitment, and international cooperation.