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Methanol Sets Sail as EU Targets Shipping Emissions

Apr 3, 2024
Mohith Velamala, a senior associate on BloombergNEF's oil team, discusses the challenges of decarbonizing the maritime sector, EU policies, and the outlook for clean shipping fuels. They explore the potential of ammonia, methane, and LNG as viable options and the long-term impact on fleet growth and carbon footprint.
30:04

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Podcast summary created with Snipd AI

Quick takeaways

  • Shipping industry explores cleaner fuel alternatives like methanol to reduce emissions.
  • EU regulations like ETS and Fuel EU Maritime drive shipping companies towards greener practices.

Deep dives

Impacts of Current Shipping Fuel Mix on Global Emissions

Oil-based bunker fuels powering global shipping fleets contribute significantly to emissions, accounting for over 5% of global oil demand and 2.5% of CO2 emissions in 2022. Despite economic and regulatory challenges, cleaner fuel alternatives like methanol, biofuels, and LNG are emerging in shipbuilders' order books, suggesting a shift towards more sustainable shipping practices.

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