Amazon and IKEA, together with around 35 other companies, are working to boost demand for e-fuels in the shipping industry. This group, known as the Zero Emissions Maritime Buyers Alliance, is set to invite shipping firms to bid in January 2025 for contracts to move their cargo using vessels powered by near-zero emissions fuels like e-methanol. This initiative is part of their shared commitment to reducing greenhouse gas (GHG) emissions, with the aim of achieving net-zero emissions in ocean shipping by 2050.
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The global shipping industry, which is responsible for over 80% of global trade and approximately 3% of worldwide GHG emissions, faces a significant challenge in transitioning to cleaner energy. E-fuels, produced from renewable electricity and carbon dioxide, are considered crucial for decarbonising the industry due to their potential to compete with traditional fossil fuels in terms of cost and availability.
The alliance hopes to generate demand for these fuels, which are currently in limited supply, by leveraging the purchasing power of its members. These companies, which include major players like Amazon and IKEA, are seeking long-term contracts for e-fuel-powered shipping that will begin in 2027.
The estimated volume of cargo under these contracts is expected to match the equivalent of over 1.4 million 20-foot containers. This would prevent the emission of approximately 470,000 metric tons of GHGs.
The initiative is also likely to benefit from upcoming global regulations aimed at reducing GHG emissions in the shipping sector. The International Maritime Organization (IMO) is set to introduce regulations in April that will include mechanisms to reduce fuel GHG intensity and incentivise the use of zero-emissions fuels, which could further accelerate the shift toward greener maritime practices.
Source: www.reuters.com