Port of Long Beach continues green fuels transition

The Port of Long Beach, in a strategy paper, has identified progress and steps necessary for maritime operators and ports to transition to green fuels.

Noel Hacegaba, Chief Operating Officer, Port of Long Beach explained to AJOT that progress continues to be made in transitioning to green fuels: “The Port of Long Beach commissioned this study because our team recognized the need to develop a deeper understanding of the issues around the transition to low and zero carbon fuels for marine applications - a change that is being driven internationally by IMO, policies in the EU, and industry commitments for sustainability and decarbonization. The purpose of this white paper is to provide the port with information and strategic recommendations for moving forward with adoption of clean marine fuels, including guidance on policy recommendations and port infrastructure needs for their deployment. To help us get there, the shipping industry is already investing in new ships that can use these Clean Marine Fuels, with new build orders being announced regularly from shipping lines like COSCO, CMA CGM, Evergreen, Maersk, ONE, and others. As of today, there are more than 120 methanol powered vessels on order.”

Green Shipping Corridors

Hacegaba also noted collaboration between ports to develop so-called Green Shipping Corridors: “Our involvement in the Green Shipping Corridors – both with Shanghai and Singapore - is voluntary, because we recognize the need to make progress on decarbonization in the shipping industry and the critical role that ports play in helping to facilitate the transition.”

At the same time, the ports of Los Angeles and Long Beach will give a progress report on the San Pedro Bay Ports Clean Air Action Plan (CAAP) on Wednesday, April 2. The meeting will include information on the Ports’ 2024 air quality achievements and 2025 priorities, as well as a status update on the truck and cargo handling equipment feasibility assessments.

The strategy paper “Clean Marine Fuels” explained that: “The maritime industry, traditionally reliant on Heavy Fuel Oil (HFO) and Marine Gas Oil (MGO), is transitioning towards clean marine fuels to reduce greenhouse gas (GHG) emissions and toxic air pollutants. Clean marine fuels include green hydrogen, green methanol, green ammonia, renewable LNG, and biofuels, offering lower GHG and pollutant emissions, and are playing a vital role in reducing the environmental impact of maritime shipping. To understand the opportunities and challenges related to the adoption of clean marine fuels, the Port of Long Beach hired ICF Consulting to develop this white paper as an educational resource and guidance document.”

Types Of Clean Marine Fuels

The report described in more detail the types of clean marine fuels:

• Green Hydrogen (H2): Generated through renewable energy sources, green hydrogen is carbon-neutral but has low energy density and high production costs.

• Green Methanol (CH3OH): Synthesized from biomass or hydrogen and captured CO2, green methanol offers a cleaner alternative with lower energy density. Green methanol is generally safe to handle but costly, with production methods under exploration.

• Green Ammonia (NH4): Produced using green hydrogen and nitrogen, green ammonia offers a low carbon alternative but is expensive and poses handling and storage challenges.

• Renewable LNG (CH4): Also referred to as bio-LNG, this alternative fuel is produced from biogas through anaerobic decomposition of organic matter. It reduces GHG emissions but faces challenges like methane slip and limited availability.

• Biofuels: Derived from non-fossil biomaterials, biofuels can be used as drop-in fuels without significant modifications. Biofuels are limited by feedstock availability and competition from other sectors.

The policy drivers for implementation include:

• International Maritime Organization (IMO): Sets targets for GHG emissions reduction with strategies such as the Energy Efficiency Design Index (EEDI) and the Energy Efficiency Existing Ship Index (EEXI).

• European Union (EU): Implements the EU Emissions Trading System (EU ETS) and the proposed FuelEU Maritime regulation.

• United States: Legislations like the Renewable Fuel Standard (RFS) and the Inflation Reduction Act (IRA) offer incentives for low-emission fuels in domestic transport. However, there are currently no specific incentives for clean marine fuels in the maritime sector.

• Industry Commitments: Major shipping companies set ambitious targets, integrating sustainability into their operations.

Market Growth and Challenges

The report says that the marine fuel market is large and complex, with a growing demand for alternative fuels: “However, challenges like lower energy density, high costs, regulatory inconsistencies, and infrastructure needs pose significant hurdles. Transitioning to these fuels requires a concerted effort from various stakeholders including IMO, the U.S. Environmental Protection Agency (EPA), ship operators, engine manufacturers, financial institutions, beneficial cargo owners (BCOs), and ports.”

Recommendations

To accelerate the adoption of clean marine fuels, several strategic recommendations are also proposed in this white paper:

• Development of market-based mechanisms by state, federal, or international bodies to incentivize clean marine fuel adoption.

• Ports can enhance green ship incentive programs to reward vessels adopting clean fuels.

• Collaboration across stakeholders, including shipping lines and terminal operators, is essential to identify and develop fueling infrastructure.

• Technology demonstrations and emissions testing will be essential to validate performance and environmental impacts of clean fuel engines.

• Efforts should also leverage green shipping corridors to support early adopters, facilitate knowledge sharing, and address challenges.

• Streamlining permitting processes can expedite infrastructure projects while aligning with sustainability goals.

• Governments should also offer grants and financing for fuel supply, infrastructure, and technology pilots, complemented by supportive policies and robust collaboration between maritime organizations and regulatory agencies to ensure accountability and progress.