Jesse Fahnestock’s Post

I’m pleased to share the work I’ve been undertaking alongside Global Maritime Forum as part of UMAS. Our latest report, “Calculating the cost gap: Western Australia–East Asia iron ore green shipping corridor”, presents a focused assessment of the key sources, costs and sensitivities involved in delivering green ammonia to fuel this corridor. We adopted a project-based approach to costing the rollout of a zero-emission fleet across these routes, and we did so within a compliance-shaped framework as actions can no longer be weighed against business-as-usual metrics and decisions must be informed by commercial evaluations that reflect the arc of future regulation.    This contribution is just one piece in the green shipping corridor puzzle that Global Maritime Forum is steadfastly building. The journey on this transition is complex, but with the right mix of technology, policy, and collaboration, it is entirely achievable.     Reach out to find out more or access the full paper here: https://lnkd.in/eAUjPgPq #Decarbonisation #GreenShipping #sustainableshipping #GMF

'Newcastlemax ships on fixed routes may be most suitable for ammonia as a fuel, with purchasing at scale, in green corridor type structures' https://lnkd.in/g3cRu77N

How transformative will be the green agenda really be for the copper industry

EXCERPTS: Chinese wind-turbine maker Xinjiang Goldwind Science & Technology Co. Ltd. (002202.SZ) has won a long-term contract to supply green methanol to A.P. Moller-Maersk A/S, as the Danish container shipping giant works to cut its emissions and provide low-carbon shipping services. Production is expected to begin in 2026 and the supply, a mix of green bio-methanol and e-methanol, will be used to power the first 12 large methanol-enabled container vessels that A.P. Moller-Maersk has on order. A.P. Moller-Maersk said the Goldwind deal marked the first large-scale green methanol offtake agreement for the global shipping industry, and is part of the company’s strategy to decarbonize its operations and reach net-zero greenhouse gas emissions across its entire business by 2040.

The “Green Transition” Brings Choices and Challenges.... Throughout much of this year, the maritime media has reported how ocean carriers continue to target a ‘green transition.’ Yet the process is not a simple one. To begin with, are the shipping lines Team Ammonia, Team LNG, Team Hydrogen or Team Methanol? Decarbonisation for ocean carriers is an expensive commitment and comes at a time when the industry is already facing volatile geopolitics in multiple areas, extortionate canal transit costs in Panama, and plummeting profits. Ultimately there is a price that needs to be paid for going green across the entire supply-chain and it remains a difficult balancing act as we go into 2024. Please reach out to Steve Wray and Dean Davison to discuss any opportunities. The full article can be seen at https://lnkd.in/gWfQF_Ec #maritime #maritimeindustry #shippinglines #greentransition #decarbonisation

Five maritime industry majors have formed a partnership to jointly study establishing a supply chain for the provision of clean ammonia ship-to-ship (StS) bunkering on the U.S. West Coast. #ammonia #shipping #bunkering #alternativefuels

DRY BULK TRADING NEWS | The path to decarbonization presents multiple challenges. The dry bulk sector, which accounts for a substantial part of the global shipping industry, faces unique challenges on its path to decarbonisation. The sector's trading structure, with vessels serving a diverse array of ports and anchorages, makes the transition to low or zero carbon fuels more complex. #drybulk #shipping #logistics #commodities #imperiumcs

🚢 Transitioning to zero-emission potential fuels like green ammonia and e-methanol may seem costly for shipowners, who must retrofit vessels or order newbuilds compatible with these fuels. 🌊⚓️ FuelEU Maritime's pooling mechanism can help ease this cost burden, a Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping study finds. 💡💚 MMMCZCS' calculates that in a pool, every one vessel powered by green ammonia or e-methanol could potentially earn overcompliance worth up to $10/GJ from 2025 and $16/GJ from 2040! “… the combination of pooling benefits and additional FuelEU and ETS costs on LSFO can close the gap between conventional and alternative fuel costs by 2035. In the case of e-ammonia, the cost is reduced by over 50% from 2035 through 2044," according to MMMCZCS. While the road to green fuel adoption is long and difficult, insights like these offer tangible approaches to lower costs in the process. ⛴️💡 Check out ENGINE for more details 👉 https://t.ly/p0qv9

A trailblazer in the transition to green shipping is changing course. Denmark’s A.P. Moller-Maersk is adding 60 new vessels to its fleet, in a blockbuster order that will include many ships that will run on liquefied natural gas. The WSJ reports that Maersk had earlier rejected the carbon-based propulsion fuel and focused on methanol-powered ships that emit no carbon dioxide. The turnabout shows how complicated the transition to zero-emissions power is across shipping. Maersk has signed agreements with private methanol producers around the world but supplies have been tight. Most of the methanol-capable vessels are dual fuel, meaning they also can run on bunker fuel. CEO Vincent Clerc calls the plan a “hedging approach,” but says uncertainty on availability and cost will lead to a mix of fuels, including methanol and LNG, that will coexist for longer than earlier anticipated.

The fuels sector faces an uphill battle to attract investment in the low carbon fuels needed for net zero unless UK Government creates a more business-friendly environment. That's one of the key themes highlighted by The Times after an interview with Fuels Industry UK CEO Elizabeth de Jong. As the article notes, the sector faces higher costs than international competitors. But with the right policy decisions, it can help the UK achieve net zero with a thriving industrial sector still in place. To do this UK Government needs to: Introduce a carbon levy in the form of a Carbon Border Adjustment Mechanism (CBAM) to ensure importers face the same carbon costs as UK refiners. Provide a package of financial support for decarbonisation projects that matches those offered to projects in competitor countries. Create a stable policy and fiscal environment that gives investors’ confidence. Read the article here: https://lnkd.in/e_WgY6f6