IMO proposes ‘pricing mechanism’ for ships to reduce Ghg emissions

The United Nations’ International Maritime Organization (IMO) is considering a ‘pricing mechanism’ to accelerate international shipping’s transition away from greenhouse gases (ghg) and toward zero emissions.

The proposal came out of the Marine Environment Protection Committee (MEPC) session that was held at IMO Headquarters in London from September 30th to October 4^th.

On October 10^th the IMO announced that the Marine Environment Protection Committee: “made progress on the development of mid-term measures aimed at cutting down greenhouse gas emissions to meet the ambitions set out in the 2023 IMO Strategy on Reduction of GHG Emissions from Ships. These proposed regulations are scheduled for adoption in late 2025, building on previously adopted "short-term measures" for GHG reduction which focus on enhancing the energy efficiency of ships. The mid-term measures under discussion include:

a technical element, i.e., a global marine fuel standard regulating the phased reduction of a marine fuel's GHG intensity; and
an economic element, i.e., a maritime GHG emissions pricing mechanism.”

Maersk Proposes Incentives

On August 27^th, Vincent Clerc, CEO of A.P. Moller-Maersk, urged the International Maritime Organization (IMO) to adopt measures that will incentivize ocean carriers to meet net zero carbon emissions for ships.

Clerc made his remarks to reporters during the naming ceremony of the green methanol-powered Alette Maersk at the Port of Los Angeles.

Clerc wants an assessment per container on carriers shipping containers powered by fossil fuels to incentivize the carriers to build zero and near-zero emission-powered vessels: “So what we've said, what we've done is say: how do we create the right level playing field without creating inflation? …. And basically, if it costs a hundred dollars more to sail a container on green fuel and 1% of these containers sail green if you take a levy of just $1 on the other 99 [percent] and give that … as a cost incentive to the one that buys a hundred, you have” a fair incentive process.

Clerc emphasized that the industry-wide approach Maersk advocates through the IMO is essential: “And here you have a sector that has leaned in ahead of regulation, but at least now asking for regulatory help, because the difference in cost between, for doing the right thing is so big that as it is today, it is not economically viable without some level of leveling the playing field and making it easier for consumers and customers to do the right choice. And that's really what we're trying to … We've made a significant investment. We've proven that from an engineering perspective. We can decarbonize, and we can put this whole segment and the whole global supply chain on a sustainable footing. But the market being what it is and the economics being what they are to do that without some type of incentives, without some type of carbon practices, it's going to be very difficult for consumers and customers alike to make the right choice…”

Korea’s HHI Announces Successful Test of ‘Carbon-Free’ Ammonia Engine

Highlighting the progress Clerc described is the announcement by HD Hyundai Heavy Industries (HD HHI) that it “has successfully developed an ammonia dual-fuel (DF) engine, a carbon-free fuel technology, and has received type approval from seven major classification societies.”

The company said that between “Sep. 30 to Oct. 2, 2024, HD HHI conducted a successful type approval test for its first model of the HiMSEN ammonia dual-fuel engine, the ‘H22CDF-LA,’ at its Engine Techno Center in Ulsan, South Korea.”

The company explained: “By developing this 1.4 to 2.2MW ammonia dual-fuel engine, HD HHI has enabled its application not only for ammonia carriers and general commercial vessels but also for land-based power generation. The ‘H22CDF-LA’ is the world’s first ammonia high-pressure direct injection engine, designed to minimize greenhouse gas emissions by using carbon-free ammonia as fuel. The engine controls nitrogen oxides (NOx) and unburned ammonia emissions in exhaust gases, effectively reducing the concentration of ammonia emissions using only a Selective Catalytic Reduction (SCR) system. This breakthrough in ammonia dual-fuel engine development builds on the success of HD HHI’s H32DF-LM methanol dual-fuel engine, which was the world’s first of its kind, launched in 2022.”

Challenges for Ammonia Fuel

The deployment of ammonia as a fuel still has several hurdles to address according to two maritime experts contacted by AJOT.

They say ammonia has “the big advantage that it does not have a ‘C’ in its molecular formula. which means that if an engine can burn ammonia, it is automatically ‘carbon zero’.”

However, designing ammonia-powered engines needs to address the following:

High toxicity
High corrosiveness
It is not easy to “burn” ammonia in a combustion engine and “may require substantial amounts of pilot oil so that byproducts of the combustion may be more harmful than the problem burning ammonia is trying to cure.”

However, the two experts note that in Hyundai’s press announcement “we see that technological advances are trying to deal and mitigate the last-named aspect. However actual data is yet to be disseminated.”