Description of need
Maritime shipping is responsible for about 3% of global greenhouse gas emissions, and the industry faces growing pressure to decarbonize as climate goals become more stringent. There is a need for cost-effective, scalable solutions to reduce or eliminate emissions from ships while maintaining the operational efficiency of the global supply chain.
Problem severity (1-10)
8
Who has this need
- Shipping companies and fleet operators (e.g. Maersk)
- Shipbuilders and maritime equipment manufacturers
- Governments and regulatory agencies
- Cargo owners and logistics companies
- Environmental organizations
- Ports and coastal cities impacted by maritime emissions
Total addressable market (TAM)
The global maritime shipping market is valued at approximately $1.5 trillion annually, with decarbonization initiatives representing a significant growth opportunity across multiple segments, such as fuel production, engine retrofits, and carbon management services. The TAM for decarbonization technologies in shipping could reach hundreds of billions of dollars by 2050.
Solutions today, and their shortcomings
- Liquefied natural gas (LNG): Although cleaner than traditional marine fuels, LNG is still a fossil fuel and emits methane, a potent greenhouse gas.
- Biofuels: Availability is limited, and they can be expensive and require significant land use for production, which may not scale sustainably.
- Battery-electric ships: While useful for short trips, battery technology lacks the energy density needed for long-haul voyages, limiting its applicability.
- Hydrogen and ammonia fuels: These emerging solutions are promising but face significant challenges related to production, storage, distribution, and fuel cell technology, all of which need further development and infrastructure buildout.
- Wind and solar assistance: While renewable energy can reduce fuel consumption, these solutions are currently supplemental rather than fully replacing fossil fuels.
Potentially relevant capabilities
- Chimera Marine - Fusion-fission hybrid for cargo ships
- Green hydrogen production: Development of cost-effective and scalable hydrogen generation and storage systems for fueling ships.
- Fuel cell technology: Advancements in fuel cells that can power long-distance maritime travel efficiently.
- Energy storage innovation: Improved battery technologies with higher energy density for short- and mid-range ships.
- Alternative fuel infrastructure: Creation of global refueling networks for zero-carbon fuels like hydrogen, ammonia, or biofuels.
- Emission monitoring and carbon management tools: Technologies for tracking, reporting, and offsetting carbon emissions from shipping operations.
References
- International Maritime Organization (IMO) targets for reducing carbon emissions by 50% by 2050.
- Global Maritime Forum and their insights on shipping decarbonization trends.
- Research by the International Energy Agency (IEA) on alternative fuels for shipping.
- Reports on hydrogen and ammonia as maritime fuels from the Hydrogen Council and DNV GL.