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Ocean carriers should focus on transitioning from fossil fuels to decarbonized green fuels but expect an added cost of between $2,000 and $3,000 per 40-foot container, warned Jeremy Nixon, CEO of Ocean Network Express (ONE).
Nixon said an international regulation or carbon tax will be needed so that all ocean carriers make the investment together and not allow for some carriers to opt out, continuing to operate with cheaper fossil fuels that will allow them to undercut decarbonized ocean carriers.
Nixon explained the process by which the adoption of green fuels would add to the cost of a 40-foot container: “First, we have got to get the green fuel. So, the key three solutions, which are really methanol, ammonia, potentially synthetic LNG … require a lot of green hydrogen. Many other industries are competing for green hydrogen, so we need to make this call to all governments, to the IMO (International Maritime Organization). We need to accelerate the production of green hydrogen across the energy companies. »
Read more in an article from the American Journal of Transportation.