It comes after a June 2021, study into zero emissions shipping, published by the University of Oxford and Pinsent Masons, noted that batteries and biofuels were currently the only commercially viable alternatives to dirty fuels. It found that the costs of clean fuels, such as green hydrogen and green ammonia, were more than double their fossil fuel counterparts. The report also suggested that new ‘contracts for difference’ could drive decarbonisation by covering some of the costs of switching to greener fuel types.
Farquhar said: “Calls to reduce marine and air pollution have propelled the UK government, in line with policymakers throughout the world, to search for opportunities to develop new strategies to stimulate investment in new technologies and encourage commercial shipping operators to switch to more environmentally-friendly fuels.”
“Industry collaboration is the key to driving innovation, reducing production costs and supporting demands for cleaner fuels and fresh approaches. Companies are already introducing hybrid vessels, which feature battery storage systems and combine existing conventional gas or fuel-powered engines with rechargeable electrical batteries” he added. Last year, shipping giant Maersk announced plans to introduce 12 container vessels capable of operation with carbon-neutral methanol by 2025, after conducting studies on the potential use of hydrogen and green methanol as alternative fuels.
Farquhar said the consultation’s proposals built on the DfT’s previous work in the sector. “Since 2019, ministers have published a Clean Maritime Plan, a Transport Decarbonisation Plan and a Net Zero Strategy, setting out the government’s plans to establish ‘clean growth’ in shipping amid a wider drive to decarbonise the UK economy,” she said.
Farquhar added: “Public investment has also been allocated, with £206 million of funding committed in 2021 to establish the UK Shipping Office for Reducing Emissions, which researches clean technologies and supports employment in this area. This latest consultation makes clear that the UK government intends to push forward with, and build on, these initiatives in the coming years by exploring further policy interventions to achieve Net Zero.”
The DfT’s consultation closes in October 2022. A report on its findings will be published in 2023.
