Sustainable fuels are currently up to five times more expensive than fossil fuels but could reach cost parity by 2035 with strong regulation, according to a new Wärtsilä report.
The report finds no one fuel is likely to dominate the market and shipping needs a mix that can cater to different needs.
“Focus should be on co-ordinating action across policymakers, industry and individual operators to develop the production, infrastructure, supply chains and technology for a mix of sustainable fuels needs,” it states.
Proactive policies can be seen in Europe, where cost parity will be achieved in 2035 thanks to the introduction of shipping into the EU ETS and FuelEU Maritime regulations, which increase the cost of fossil fuels for shipping annually.
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