Maersk Bets on Alcohol Over Batteries to Cut Shipping Emissions
Maersk Bets on Alcohol Over Batteries to Cut Shipping Emissions
(Bloomberg) -- The world’s largest shipping company believes alternative fuels like alcohol are a more viable option than electric power in helping the industry become carbon neutral within a generation.
A.P. Moller-Maersk A/S said Thursday its own research suggested ship owners should focus on developing alcohol, biomethane and ammonia. The study, conducted with Lloyd’s Register, found that batteries and fuel cells are less workable medium-term alternatives.
Copenhagen-based Maersk, which operates more than 600 vessels, has invested about $1 billion over the last four years to improve energy efficiency and help it become net carbon neutral by 2050. It said it needs to develop new technologies to reach the goal, including changing the way ships are propelled.
“It is too early to rule anything out completely, but we are confident that these three are the right places to start,” Soren Toft, Maersk’s chief operating officer, said in the statement. “Consequently, we will spend 80% of our focus on this working hypothesis and will keep the remaining 20% to look at other options.”
| Type of fuel | Pros | Cons |
|---|---|---|
| Alcohol | non-toxic, existing market, used at room temperature | uncertain supply, requires further research |
| Biomethane | already viable with existing technologies | supply issues, challenges in developing synthetic gas |
| Ammonia | 100% carbon free, already produced | highly toxic, technological challenges |
Earlier this year, Maersk conducted a successful test voyage using biofuel for one of its largest container vessel doing a round trip from Rotterdam to Shanghai.
The study also found that the industry is unlikely to be able to cut emissions without government regulation and that the cost of shipping will rise as new fuels are developed.
In related news Thursday, Maersk Tankers said it was able to reduce fuel consumption by 8.2% on one of its tankers by supplementing its traditional engine power with large sails.
The two rotor sails, developed by Norsepower Oy Ltd, create a pressure differential that propels the vessel forward. The company, which is also controlled by the Maersk family. said it will use what it described as a “breakthrough” technology to help it achieve its target of cutting emissions by 30% compared with 2008 levels by 2021.
To contact the reporter on this story: Christian Wienberg in Copenhagen at cwienberg@bloomberg.net
To contact the editors responsible for this story: Tasneem Hanfi Brögger at tbrogger@bloomberg.net, Nick Rigillo
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