Charting a New Course: The Marine Industry’s Shift to Lower Carbon Fuels

As the marine industry navigates toward a lower carbon future, the adoption of alternative fuels represents a potentially large part of this transition. The Argus Sustainable Marine Conference, a pivotal event that brings together industry leaders to explore the future and integration of these fuels, developed a guide that features interviews from key stakeholders in the marine industry. Jon Scharingson, Executive Director of Strategic Initiatives at Chevron Renewable Energy Group, contributed to this ebook. Here is an overview of his insights on the role of renewable fuels in transforming marine transportation.

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Q: What are the benefits and challenges of developing biofuels/methanol/ammonia/hydrogen/bio-LNG as a future marine fuel? And how does it compare to other alternatives?

A: The challenges are different for each of the fuels described. One of the big challenges the industry has in general is that vessels can last a long time, in some cases, 40-50 years before they are retired. This makes it challenging to rapidly change a fleet to a new engine platform. Most vessels today can operate on high blends of biodiesel and renewable diesel, typically without any modifications, which is an advantage over other options. 

Q: What do you see as the current timeline for the wider adoption of lower carbon fuels?  

A: It’s starting to happen. Chevron has been actively selling B24 FAME in Singapore for over a year. The EU is implementing legislation that is going to make traditional fossil fuels increasingly more expensive. The carbon intensity indices being assigned by the IMO to vessels are starting to have an impact as well. In addition, several cruise lines and container vessel companies have established their own internal requirements to reduce greenhouse gas emissions to meet corporate targets. These all contribute to increasing momentum in this space. 

Q: If you could communicate one message to the maritime industry to accelerate the adoption of lower carbon fuels, what would it be? 

A: Do not let the perfect be the enemy of the good. There are things the marine industry can implement today that will immediately help reduce its carbon intensity. Biofuels, and more specifically biodiesel and renewable diesel, can be a great technical fit with marine vessels in blue water and brown water market segments. They often do not require any engine modifications or capex investments in new ships, and the fuels are readily available in many markets if people just ask for them. 
 
Lowering carbon intensity is becoming more than an industry trend aimed at aligning with environmental regulations—it's an opportunity to stand out as a leader. Chevron offers a complete suite of lower carbon fuel solutions that allow you to customize the right approach for your business needs. Our high quality, lower carbon fuels, offer a balanced approach for working toward lifecycle carbon emissions targets—which could help you gain a competitive edge in the marketplace. 

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