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Article: Alternative fuel confusion is biggest exposure for marine risk market
Insurers have a critical role in bringing clarity to the alternative fuel debate and building consensus among maritime industry players. Capt. Yves Vandenborn, Director of Loss Prevention discusses navigating changes and challenges brought about by the future of shipping with alternative fuels.
Ammonia, biofuels, hydrogen, electrification, LNG, methanol etc - clearly there are several options. Adding to the confusion is the case for and against each option, the required infrastructure to support these options and the variety - or lack of - in the ‘basket of fuels’ options.
With a plethora of possible problems and pitfalls strewn along the path to a greener future, there is no clear route ahead, for now.
The IMO’s response following the 2015 Paris Agreement was the ambitious goal to reduce greenhouse gas (GHG) emissions by half by 2050. These include reducing CO2 emissions by at least 40% by 2030, with the aim to reach 70% by 2050, as compared to 2008 levels. There are also grand plans to phase GHG emissions out entirely this century. So, it begs the question: What is the best alternative fuel option as the industry transitions to net zero CO2 emissions?
With no absolute clarity on what is the best fuel choice, the industry’s response has been varied with shipowners adopting different approaches.
Read the full article on pages 6-7 of Insurance Day, Tuesday 14, December 2021 edition linked here and attached below.
Category: Alternative Fuels