Net Zero Industry Tracker 2024

Infrastructure Demand SHIPPING SHIPPINGTo meet the 2050 net-zero targets, a clean hydrogen capacity of 72 MTPA191 will be required to produce ZEFs. This will have a 95% share of the total fuel mix in 2050 as per the Global Maritime Forum.192 Shipyard capacities will also need to be expanded to accommodate the new dual-fuel and ZEF-compatible ships. The first ship-to-ship transfer of ammonia in an operational port environment was successfully completed in 2024, a result of the collaboration between Yara Clean Ammonia, Pilbara Ports Authority and the Global Centre for Maritime Decarbonisation (GCMD).193 With the addition of new ZEF-powered ships to meet the 2050 net-zero targets, it will be crucial to develop the supporting bunkering infrastructure for different ZEFs. In 2050, 95% of the fuel mix is expected to be ZEFs, which will require a bunkering capacity of approximately 913 MTPA. There is a lack of clear demand signals from the market, particularly around customers’ willingness to pay. For instance, the exact fuel requirements to achieve the net-zero targets are still unclear to fuel producers and ship developers. Due to this, companies are hesitant to develop new ZEF- powered engines and sign long-term fuel-offtake agreements. Moreover, carriers are currently used to buying fuel on the spot and expect the cost of ZEFs to decrease in the future, which reduces the attractiveness of long-term fuel-offtake agreements.The estimated B2B green premium for the shipping industry is high, at 30-80%. The green premium projections for low-emission fuels and ZEFs also remain high. For example, biofuels are expected to cost 2-4 times the cost of heavy fuel oil, and hydrogen-based fuels are expected to cost 4-4.5 times the cost of heavy fuel oil.194 However, this green premium only translates to a 1-2% increase in the final retail price to customers (in case of high-value products such as IT equipment), Infrastructure for decarbonization capacity FIGURE 32 CO 2 transport and storage BunkeringClean hydrogen productionCurrent capacity used Capacity required (2050) 72 MTPA 135 MTPALess than 1 MTPA Less than 1 MTPA Less than 1 MTPA 913 MTPA Source: Accenture calculations based on GMF. Net-Zero Industry Tracker: 2024 Edition 58