Green shipping won’t be cheap

In 2019, some 65 million metric tons of iron ore were exported from Australian mines to Japanese steelmakers. A total of 111 bulk carriers on the route produced 1.7 million metric tons of CO2 emissions. To get this vital trade route to net zero, ammonia engines should be in use by 2024. However, our analysis suggests that even by 2030, a carrier that runs on green ammonia will still cost 64 percent more in total cost of ownership than a ship that runs on fuel oil.

Iron-ore bulk carriers that run on green fuels are expected to cost significantly more than those that run on conventional fuel.

To read the article, see “Green corridors: A lane for zero-carbon shipping,” December 21, 2021.