E-methanol is the most likely pathway for ZEMBA’s next tender

News

ZEMBA says e-methanol is the most likely pathway for ZEMBA’s next tender because of alignment between production and e-methanol-capable container ships on the water in 2027.

Maersk’s methanol-powered ship Laura Maersk

The Zero Emission Maritime Buyers Alliance (ZEMBA) and Lloyd’s Register Maritime Decarbonisation Hub have released a new report, which found that e-fuel-powered shipping services are projected to be available for ZEMBA’s next tender. Specifically, the report – which summarises the findings from a request for information (RFI) that the two organisations co-ran earlier in 2024 – found sufficient predicted supply of both e-methanol and e-methanol-capable vessels in the container segment to support ZEMBA’s focus on e-fuel deployment. ZEMBA’s next tender is expected to launch in early 2025, with the aim to purchase the environmental attributes associated with e-fuel-powered services starting in 2027.

The first tender was won by German liner Hapag-Lloyd for ocean shipping on waste-based bio-LNG. The deal was adjusted from three years to two years – 2025-2026.

“ZEMBA’s aim is to open the door to new and increasingly scalable solutions through each of our tender processes,” said Ingrid Irigoyen, President and CEO of ZEMBA. “Because there are scale limitations to those low carbon fuels that rely on biogenic feedstocks, rapid deployment of hydrogen-derived e-fuels this decade is crucial to ensure that the maritime sector gets on a 1.5 aligned pathway toward full decarbonisation by 2050, at the latest. We’re pleased that the RFI results suggest that the maritime sector will be ready to provide ZEMBA’s climate-leading freight buyer members with e-fuel powered shipping for our next tender.”

ZEMBA RFI

Nearly 50 ship operators and fuel suppliers responded to the ZEMBA RFI, which was intended to assess the market readiness of commercial deployment of e-fuels in shipping. The report focuses on the implications of the RFI’s results for ZEMBA’s next tender and how these findings relate to overarching trends in commercial deployment of e-fuels in the maritime sector. The RFI did not ask about the projected cost or price of e-fuel-powered services.

“The results of the RFI offer a valuable glimpse into the emerging market for e-fuels and e-fuel-capable vessels,” said Dr. Carlo Raucci, Director of Sustainable Fuels and Strategy at Lloyd’s Register Maritime Decarbonisation Hub. “Despite the current gap between e-fuel supply and vessel availability, it’s encouraging to see the potential for e-fuels to make a significant impact on the maritime sector.”

The majority of RFI respondents predicted that commercial e-fuels deployment in the maritime sector would be feasible starting in 2027 and 2028, with limited deployment potentially as early as late 2026. However, in the next few years, a mismatch was identified in the supply of certain e-fuels and corresponding e-fuel capable vessels on a fuel-by-fuel basis. Containerships capable of operating on e-methane are already available now, but the RFI found no e-methane production projects post-final investment decision (FID). Conversely, e-ammonia production projects under construction appear to be sufficient to meet ZEMBA’s estimated demand, but the first e-ammonia-capable container ships are unlikely be on the water by 2027.

The RFI suggests e-methanol is the most likely pathway for ZEMBA’s next tender because of alignment between sufficient projected e-methanol fuel production and e-methanol-capable container ships on the water in 2027. However, across fuel types, the report highlights that a significant number of e-fuel projects remain at pre-FID stage, casting doubt on whether those projects would begin production on their projected timelines and if e-fuel-capable dual fuel vessels will run on e-fuels.

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E-methanol is the most likely pathway for ZEMBA’s next tender ‣ WorldCargo News

E-methanol is the most likely pathway for ZEMBA’s next tender

News

ZEMBA says e-methanol is the most likely pathway for ZEMBA’s next tender because of alignment between production and e-methanol-capable container ships on the water in 2027.

Maersk’s methanol-powered ship Laura Maersk

The Zero Emission Maritime Buyers Alliance (ZEMBA) and Lloyd’s Register Maritime Decarbonisation Hub have released a new report, which found that e-fuel-powered shipping services are projected to be available for ZEMBA’s next tender. Specifically, the report – which summarises the findings from a request for information (RFI) that the two organisations co-ran earlier in 2024 – found sufficient predicted supply of both e-methanol and e-methanol-capable vessels in the container segment to support ZEMBA’s focus on e-fuel deployment. ZEMBA’s next tender is expected to launch in early 2025, with the aim to purchase the environmental attributes associated with e-fuel-powered services starting in 2027.

The first tender was won by German liner Hapag-Lloyd for ocean shipping on waste-based bio-LNG. The deal was adjusted from three years to two years – 2025-2026.

“ZEMBA’s aim is to open the door to new and increasingly scalable solutions through each of our tender processes,” said Ingrid Irigoyen, President and CEO of ZEMBA. “Because there are scale limitations to those low carbon fuels that rely on biogenic feedstocks, rapid deployment of hydrogen-derived e-fuels this decade is crucial to ensure that the maritime sector gets on a 1.5 aligned pathway toward full decarbonisation by 2050, at the latest. We’re pleased that the RFI results suggest that the maritime sector will be ready to provide ZEMBA’s climate-leading freight buyer members with e-fuel powered shipping for our next tender.”

ZEMBA RFI

Nearly 50 ship operators and fuel suppliers responded to the ZEMBA RFI, which was intended to assess the market readiness of commercial deployment of e-fuels in shipping. The report focuses on the implications of the RFI’s results for ZEMBA’s next tender and how these findings relate to overarching trends in commercial deployment of e-fuels in the maritime sector. The RFI did not ask about the projected cost or price of e-fuel-powered services.

“The results of the RFI offer a valuable glimpse into the emerging market for e-fuels and e-fuel-capable vessels,” said Dr. Carlo Raucci, Director of Sustainable Fuels and Strategy at Lloyd’s Register Maritime Decarbonisation Hub. “Despite the current gap between e-fuel supply and vessel availability, it’s encouraging to see the potential for e-fuels to make a significant impact on the maritime sector.”

The majority of RFI respondents predicted that commercial e-fuels deployment in the maritime sector would be feasible starting in 2027 and 2028, with limited deployment potentially as early as late 2026. However, in the next few years, a mismatch was identified in the supply of certain e-fuels and corresponding e-fuel capable vessels on a fuel-by-fuel basis. Containerships capable of operating on e-methane are already available now, but the RFI found no e-methane production projects post-final investment decision (FID). Conversely, e-ammonia production projects under construction appear to be sufficient to meet ZEMBA’s estimated demand, but the first e-ammonia-capable container ships are unlikely be on the water by 2027.

The RFI suggests e-methanol is the most likely pathway for ZEMBA’s next tender because of alignment between sufficient projected e-methanol fuel production and e-methanol-capable container ships on the water in 2027. However, across fuel types, the report highlights that a significant number of e-fuel projects remain at pre-FID stage, casting doubt on whether those projects would begin production on their projected timelines and if e-fuel-capable dual fuel vessels will run on e-fuels.

You just read one of our articles for free

To continue reading, subscribe to WorldCargo News

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  • Access to all regular and exclusive content
  • Discount on selected events
  • Full access to the entire digital archive
  • 10x per year Digital Magazine

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