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Home » Ocean Transportation » Report: Low-Carbon Marine Fuel is ‘Economically Competitive’

Report: Low-Carbon Marine Fuel is ‘Economically Competitive’

A WHITE YACHT HAS THE WORDS "HYDROGEN FUEL CELL SHIP" WRITTEN ON THE SIDE OF IT IN BLUE.

Photo: iStock.com/Scharfsinn86

April 24, 2025
SupplyChainBrain

The Institution for Chemical Engineers (IChemE), the international organization for chemical, biochemical and process engineers, has put its weight behind newly published analysis aimed at facilitating the U.K.’s maritime sector to transition to low-carbon fuels. 

The report, Low-Carbon Maritime Fuelling, concludes that renewable sources are economically competitive with traditional fossil fuel-based sources used in the maritime industry. It sets out the combination of fuels that can be considered to reduce emissions across the sector by the targets outlined in the U.K.’s Maritime Decarbonisation Strategy: hydrogen, ammonia, methanol and synthetic hydrocarbons. 

Further analysis is needed to determine how this energy mix of low-carbon fuels should be combined, says IChemE, which contributed to the technical analysis in the report. 

Spearheaded by the National Engineering Policy Centre, with support from Sargent Centre for Process Systems and Engineering — a multi-institutional research center of department at Imperial College London and University College London — the publication coincides with the imminent release of a new maritime net zero framework from the International Maritime Organization. 

“This report represents a significant leap forward in the conversation about clean maritime fuel for the U.K.,” explained Claudia Flavell-White, Director, Learned Society at IChemE. “It will play a crucial role in helping policymakers navigate the decisions they must make in shifting to a cleaner maritime sector. 

Read More: Alternative Fuels for Ocean Shipping Are Inevitable. But Who Will Pay for Them?

“Chemical engineering is a big part of spearheading the transition to a greener maritime industry, and we are delighted to see the expertise of chemical engineers leading this important debate,” Flavell-White concluded.

Although producing renewable maritime fuels is more energy-intensive and expensive than traditional fossil fuels, the additional cost is found to be reduced once the wider costs of carbon production and environmental impact are considered. Advances in renewable energy technologies and production processes may also help to decrease costs and increase efficiency over time.

Trade-offs between each of the four low-carbon fuels examined will need to be carefully considered. Hydrogen is found to be the cheapest low-carbon fuel to produce, but it would require significant overhauls in existing fuel infrastructure and ship engines. 

Using synthetic hydrocarbons can rely on existing infrastructure, vessels and engines, however, it is the most expensive fuel to produce. Ammonia and methanol are practical to store on a large scale and easier to transport using existing infrastructure, but additional costs would be required to convert a shipping fleet to operate using these fuels. 

Producing alternative maritime fuels will also require identifying suitable locations within the U.K. that are close to sources of renewable electricity and regions linked to the shipping industry with high demand for maritime fuels. 

There are significant demands for maritime fuel in the south and south-east of England, but northern Britain has greater access to wind power for generating renewable electricity. Using hydrogen in these regions may also require significant additional investment in transport or electricity transmission infrastructure, IChemE says.

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