Shipping needs to invest heavily to switch to carbon-neutral fuels

According to a forecast released by the classification society DNV reports, the shipping industry will need massive onboard technology investments ranging between $8 to $28 billion per year between 2022 and 2050 to reach full net-zero goals.

DNV released its sixth maritime forecast during SMM, an international maritime trade fair in Hamburg, Germany, urging cross-industry collaboration to help overcome the “ultimate hurdle” of fuel availability.

The publication considers the comprehensive production, distribution and bunkering infrastructures required to enable the maritime industry’s shift to carbon-neutral fuels.

It also presents an updated outlook on regulations, drivers, future technologies, and costs for decarbonizing shipping.

The report models two different decarbonization pathways: ‘Current IMO ambitions to 2050’ and ‘Full Decarbonization by 2050’.

DNV’s modelling points to a diverse future energy mix comprising both fossil and carbon-neutral fuels, with fossil fuels gradually phased out by 2050.

In the forecast, DNV highlights the importance of cross-industry collaborations which are believed to play an important role in making decisions for the future carbon-neutral fuel mix.

Coordinated plans by all stakeholders, including major energy and fuel providers and ports, are crucial while public incentives must encourage first movers to participate in a nascent global network of green shipping corridors, DNV says.

Tags: Bunkering, Carbon Neutral, DNV, Shippig
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