Communicator

Electricity [TWh/yr] required globally to provide green fuels for all shipping segments where actual data uncertainties are included.

A newly published academic article addresses the availability of green alternative fuels for marine shipping (and aviation). The article makes a compelling case for nuclear propulsion or otherwise see freight will stay fossil in the foreseeable future.

The paper presents some basic realities of replacing fossil fuels in shipping with green alternative fuels for the same amount of work being performed. The required amount of electric power for producing these green alternative fuels is subsequently calculated. Compared on a scale equal to major industrial entities globally, it is proven beyond any doubt that there is basically not enough electricity in the world to make a relevant amount of green alternative fuels for shipping.

Basically, the gravimetric energy densities are orders of magnitude too low, or the thermodynamical losses are too high, for electricity to replace fossil fuel in this particular application. This finding also questions the conventional wisdom of the merit of an all-encompassing electrification of society. There are, however, niches where a relevant supply of green alternative fuels is possible to secure, albeit difficult.

Therefore, much of today’s research on green alternative fuels rests on a hidden assumption—that there will be available fuels. However, green alternative fuels will not be available in relevant quantities unless the research is well contextualized for small ships on short, domestic distances. The fuel availability is, therefore, a key constraint to incorporate in future work on green alternative fuels for shipping.

Furthermore, it seems prudent to open up a wider search for solutions, including nuclear propulsion, based on the fact that the gravimetric energy densities are physical realities that we must respect.

Source: Emblemsvåg, J. A Study on the Limitations of Green Alternative Fuels in Global Shipping in the Foreseeable Future. J. Mar. Sci. Eng. 2025, 13, 79.

#marinefuel #bunkerfuel #fueloil #marinediesel #aviationfuel #greenhydrogen #greenammonia #greenmethanol #nuclearenergy

After halting work on biofuel plant in Rotterdam, 🇳🇱 The Netherlands, and booking a $1bn write down, Shell has also pulled out of e-SAF project planned with state-owned 🇸🇪 Swedish power utility company Vattenfall.

“Vattenfall and Shell have decided to pause their collaboration in the HySkies electrofuel project while Vattenfall continues the search for new partners,” said Vattenfall in a statement.

The joint project, with the planned capex of €780m ($845m), was launched in 2021 with initial plans to produce 82,000 tonnes of e-SAF and 9,000 tonnes of renewable diesel per annum. The project envisaged the use of hydrogen from 200MW electrolysis plant, biogenic CO2 captured from a waste-to-energy plant and sustainable ethanol as feedstocks at the site.

It was due to begin operations in March of 2027.

On the other hand, the company said that it will also not avail financial support via the EU Innovation Fund, considering it is infeasible for the project to succeed within the framework of that agreement and aiming to free up funds for others to use in their ambitions to decarbonise.

Vattenfall-Shell e-SAF project was awarded €80.2mn ($87mn) grant in January 2023.

#saf #hefa #hefa -spk #aviationfuel #renewablediesel #sustainableaviationfuel #shell #vattenfall #electrolysis #hydrogen #greenhydrogen #carboncapture #ccu #ethanol #bioethanol

Source: Fayaz Hussain, 8^th July 2024, SAF Investor

Shell announced that it will book an impairment charge of as much as $1.0bn on account of pausing the construction of Rotterdam biofuel plant as well as an additional $0.8bn from divestment of its chemical plant in 🇸🇬 Singapore, the company announced in its second quarter update note.

“Non-cash post tax impairments of $1.5-$2bn are expected, and mainly include the Singapore Chemicals & Products assets ($0.6-$0.8bn) as well as Rotterdam's HEFA ($0.6-$1.0bn), which is reported in the marketing segment,” the company said in a statement.

Earlier this week, Shell announced that it is pausing work on the development of Rotterdam biofuel plant in 🇳🇱 The Netherlands owing to weak market conditions. The site was planned to have a production capacity of 820,000 tonnes a year to produce SAF/HVO using waste feedstocks.

“Temporarily pausing on-site construction now will allow us to assess the most commercial way forward for the project,” said Huibert Vigeveno, renewable and energy solutions director. Shell.

“We are committed to our target of achieving net-zero emissions by 2050, with low-carbon fuels as a key part of Shell’s strategy to help us and our customers profitably decarbonise. And we will continue to use shareholder capital in a measured and disciplined way, delivering more value with less emissions.”

To note, according to Shell’s 2023 annual filing the company had revised the capex requirement for the conversion of Rotterdam site to $2.1bn from $0.58bn in 2022 driven by business acquisition and construction.

Source: Fayaz Hussain, 5^th July 2024, SAF Investor

#shell #hefa #hvo #biofuel #aviationfuel #SAF#SAF