A recent report from the Zero Emission Maritime Buyers Alliance (ZEMBA) and Lloyd’s Register Maritime Decarbonisation Hub has revealed promising prospects for e-fuel-powered shipping services, which are expected to be ready for commercial deployment by 2027. This report highlights the growing alignment between the anticipated supply of certain e-fuels and the availability of e-fuel-capable vessels, primarily focusing on e-methanol, in preparation for ZEMBA’s next tender.
Key Findings
According to the report, which stems from a request for information (RFI) conducted earlier in 2024, ZEMBA’s next tender is slated to launch in early 2025. The primary goal of this tender is to purchase the environmental attributes associated with e-fuel-powered services, with actual deployment starting in 2027. The report emphasizes that nearly 50 ship operators and fuel suppliers globally contributed insights into the market’s readiness for e-fuel commercialization.
Ingrid Irigoyen, President and CEO of ZEMBA, stated, “ZEMBA’s aim is to open the door to new and increasingly scalable solutions through each of our tender processes. Because there are scale limitations to those low carbon fuels that rely on biogenic feedstocks, rapid deployment of hydrogen-derived e-fuels this decade is crucial to ensure that the maritime sector gets on a 1.5 aligned pathway toward full decarbonization by 2050, at the latest. We’re pleased that the RFI results suggest that the maritime sector will be ready to provide ZEMBA’s climate-leading freight buyer members with e-fuel-powered shipping for our next tender.”
Current Market Landscape
While the report indicates a solid foundation for e-fuels, it also points out a notable mismatch between the supply of certain e-fuels and the availability of corresponding e-fuel-capable vessels. For instance, the report notes that while containerships that can operate on e-methane are already available, there are currently no e-methane production projects that have reached the final investment decision (FID). Conversely, projects for e-ammonia production are underway, but the first e-ammonia-capable containerships are not expected to be operational by 2027.
The RFI results suggest that e-methanol is the most viable option for ZEMBA’s upcoming tender due to the alignment between projected e-methanol fuel production and the availability of e-methanol-capable vessels by 2027. However, the report warns that many e-fuel projects remain at the pre-FID stage, which raises concerns about their ability to begin production on schedule and whether the dual-fuel vessels will indeed run on e-fuels.
Dr. Carlo Raucci, Director of Sustainable Fuels and Strategy at Lloyd’s Register Maritime Decarbonisation Hub, commented, “The results of the RFI offer a valuable glimpse into the emerging market for e-fuels and e-fuel-capable vessels. Despite the current gap between e-fuel supply and vessel availability, it’s encouraging to see the potential for e-fuels to make a significant impact on the maritime sector.”
ZEMBA’s Tender Process
ZEMBA’s upcoming tender will build on insights gained from its inaugural tender, which was successfully concluded in April 2024. Hapag-Lloyd emerged as the winner of the first tender and is committed to helping members collectively avoid at least 82,000 metric tonnes of CO2e during 2025 and 2026.
The majority of RFI respondents anticipate that commercial deployment of e-fuels in the maritime sector could begin as soon as 2027 or 2028, with potential limited deployment by late 2026. ZEMBA aims to encourage longer-term contracts for e-fuel sourcing, which can stimulate the market and propel the necessary development of infrastructure and supply chains.
ZEMBA plans to announce the details of its next e-fuel-focused tender by the end of 2024, with the goal of soliciting bids in early 2025. The organization is actively seeking additional climate-conscious companies interested in reducing their Scope 3 emissions and helping to establish a zero-emission maritime market.
About Lloyd’s Register Maritime Decarbonisation Hub
The Lloyd’s Register Maritime Decarbonisation Hub is an independent, not-for-profit organization dedicated to fostering a safe and sustainable decarbonized shipping industry. Established with support from Lloyd’s Register Foundation, the Hub conducts evidence-led research and provides actionable insights to promote the transition to cleaner fuels in maritime operations.
About ZEMBA
The Zero Emission Maritime Buyers Alliance (ZEMBA) is a pioneering non-profit organization that aims to accelerate the commercial deployment of zero-emission shipping. By creating economies of scale and enabling cargo owners to maximize emissions reduction potential, ZEMBA represents a collaborative effort to tackle the challenges of the maritime industry’s transition to sustainability.