MSC executive: Clean fuel could cost eight times as much as bunker fuel

Affected by the shock of fossil fuels, the price of some clean alternative fuels is now close to cost. Bud Darr, executive vice president of maritime policy and government affairs at Mediterranean Shipping (MSC), issued a warning that any alternative fuels used in the future would be more expensive than they were spent in the past, and the shipping industry would have to pay higher fuel prices. #paper cup raw material printed

Bud Darr said fuel prices are expected to rise by two to eight times current standards when the cost of infrastructure construction and delivery is taken into account. This is the experience of companies using LNG as an alternative fuel, but market volatility may have some potential impacts. In his view, the recent surge in LNG prices means that producing bio-LNG is cost-competitive with fossil fuels.

Irish shipowner Ardmore Shipping’s chief operating officer Mark Cameron said the use of cleaner fuels had given the company a “temporary presence” in the market. It also acknowledges that there are some human factors in the rise in marine fuel prices. #paper cup fan raw
Onshore competition for fuel is also an important factor that the shipping industry has not noticed before. Bud Darr said that if green ammonia is to be used as a marine fuel, then all of the world’s renewable energy capacity needs to be concentrated. The production process of ammonia gas is more complex: first, enough green hydrogen needs to be produced and transferred through electrolyzers that have not yet been developed, then green ammonia needs to be produced through more electricity and catalyst processes, and finally it needs to be transported through unknown transportation methods. transferred to the ship. #pe paper fan

In addition, the potential emissions that may be achieved need to be considered when piloting the fuel. In the opinion of some shipping industry players, methanol is the most suitable alternative fuel at present, it is more competitive than ultra-low sulfur fuel oil, and the price is lower than low sulfur diesel oil. But due to the continued volatility of the market, the pricing and availability of fuel can change at any time.

Marco Fiori, CEO of Italian tanker owner Premuda, stressed the need for an entirely new global fuel supply infrastructure. He pointed out that even today, ships with scrubbers installed cannot source high-sulfur fuel oil in South America. Loucas Barmparis, president of Safe Bulkers, added that the real question for shipping is who pays for the development of a green fuel supply system. Bud Darr has previously said the cost must be the responsibility of the customer. #paper cups factory

Post time: Jul-25-2022