In spite of some backpedalling by US President Donald Trump, transport industries in Australia and around the world are searching for environmentally friendly fuels in the race to net zero.
HYDROGEN from old tyres, garden refuse and used cooking oil! There’s some creative thinking going into the production of the green fuels increasingly being used to power the world’s shipping.
Some of these alternative fuels are starting to make an impact as the world heads towards net zero.
And if we’re serious about the shipping industry making a difference to climate change, we need to improve the footprint left by marine fuels which are responsible for generating around 3% of the world's emissions.
“It's the dirtiest fuel you can use, it's the lowest of the low, and it’s not just the Co2 but also the other chemicals, the sulphur dioxide, the nitrous oxides, and all sorts of other particulates,” says Professor Peta Ashworth OAM, director of the Curtin Institute for Energy Transition in Western Australia.
And we are moving far too slowly she says.
An expert in energy, Professor Ashworth has researched public attitudes towards climate and energy technologies, including wind, carbon capture and storage (CCS), solar photovoltaic, storage, geothermal and hydrogen, for almost two decades.
Prior to joining Curtin University, Professor Ashworth was the director of the Andrew N. Liveris Academy for Innovation and Leadership, and Chair in Sustainable Energy Futures at The University of Queensland (UQ). She was also Chair of the Queensland Hydrogen Taskforce and is a member of the CSIRO Hydrogen Mission Advisory Board.
“I'd like to see a lot more urgency around green fuels, but there's a lot to be done,” Professor Ashworth said.
The Commonwealth's Capacity Investment Scheme has set some good targets, but renewable energy sites for hydrogen and clean ammonia need to be built as large-scale renewable energy projects to be able to produce the hydrogen, and to produce the ammonia in commercial quantities, according to Professor Ashworth.
“We just haven't got to that point.
“There are projects on the horizon but deploying them at scale is where we're really challenged. And we have to do things like make sure we're respecting traditional owners as rights holders, giving them equity where it's appropriate, all of those sorts of things.”
While it takes time to set up the required infrastructure, Professor Ashworth said, “it's not like we didn't know”.
“And let's hope, with the way that the government was re-elected, that we see some strong ambition on these things.”
Professor Ashworth said there was discussion of potentially hosting the COP, the United Nations climate summit, which she said would be helpful.
“But to do that, we have to show that Australia's really heavily committed.
“That we are now seeing ships moving around using green fuel gives hope.”
There are a whole range of fuels being used, including LNG, hydrogen, methanol, biodiesel, and ammonia, amongst the cleaner fuels.
“All these are important, but they're at different stages. There are LNG ships that are in existence now that are being used, even some on the Bass Strait.
“But I think dual fuelling is where I see things are going.”
The days of ships operating on dirty bunker fuel, which is responsible for 3% of global carbon emissions, are numbered. We continue to implore shipping regulators to show the character and leadership that is necessary to ensure this happens sooner rather than later.
Dino Otranto, Fortescue Metals
Professor Ashworth said there were still challenges to overcome to get the right balance between green and bunker fuels.
“Singapore's looking at ammonia as that next opportunity with LNG as a bit of a transition.”
Methanol and biodiesel seemed to be making progress, but ships needed to be capable of using them.
“There are already lots of LNG and methanol ships operating and there are back orders for ammonia and hydrogen capable ships, so we are in the transition.
“When I think about commercially available hydrogen - probably not yet. It might be good for short voyages, that sort of thing. Ammonia, the plan is that it will come on board internationally but getting it at scale is important.
“Methanol's in use. I don't think electrification will ever really be used except for on shorter voyages. And renewable diesel, of course, is where there's a whole lot of work going into alternative fuels that can be used through by-products and so forth a bit like they're doing with sustainable aviation which is another process being looked at here as a greener alternative.”
Professor Ashworth says price is probably what will determine which way green fuels go.
“If we care about the world - for Australia, international trade is so important, so much of our commodities are exported by ships. We've got to be on board with what's happening globally.
“Australia is probably seen as a good sovereign risk, responsible partner. So when ships are coming in and having to refuel, then Australia is a good place to go, alongside Singapore.
“The challenges are going to be, as we switch over to green fuels in the longer term, how far can these ships actually travel with the different fuels?”
There’s significant investment in green fuels and Professor Ashworth believes that countries see it as an economic opportunity.
“And let's face it, ships and climate change and oceans and severe weather events, it's not a thing that ships want to be dealing with so we've got to be able to think of ways to move it forward.”
For iron ore miner Fortescue, green fuels are more than a pipe dream as it strives to decarbonise the shipping industry.
And putting its money where its mouth is Fortescue has signed an agreement with Bocimar, part of CMB.TECH, to charter a new ammonia-powered vessel.
The 210,000 dwt Newcastlemax vessel is expected to be delivered to Fortescue by the end of next year and will play a vital role taking iron ore from the Pilbara to customers in China and around the world.
Fortescue Green Pioneer. Image: Fortescue
The modern, highly efficient vessel will feature a dual-fuel engine, making it capable of operating on ammonia that can be created using renewable energy.
While Fortescue is committed to eliminating Scope 1 and 2 emissions from its Australian iron ore operations by 2030, its target of Net Zero Scope 3 emissions by 2040 reflects what it says is the challenge of eliminating emissions from the shipping of its products to customers and from steelmaking.
Fortescue has taken a global leadership position by advocating for the early adoption of zero-emission fuels such as green ammonia and bypassing transitional fuels such as biofuels and LNG.
The Fortescue Green Pioneer, the world's first class society approved dual-fuel ammonia-powered vessel, has been in London since early March and is scheduled to tour global ports to bring attention to the need for a hastened transition to zero emission fuels.
Fortescue Metals CEO Dino Otranto said: “Our landmark agreement with Bocimar sends a clear signal to the market – now is the time for shipowners to invest in ammonia-powered ships.
“The days of ships operating on dirty bunker fuel, which is responsible for three per cent of global carbon emissions, are numbered. We continue to implore shipping regulators to show the character and leadership that is necessary to ensure this happens sooner rather than later.
“Our agreement with Bocimar is just the beginning and is a critical step in addressing our Scope 3 emissions. Through the Fortescue Green Pioneer we have demonstrated that the technology to decarbonise shipping exists now.
“We will continue to work with like-minded companies like Bocimar to transition our fleet to low and zero-emissions vessels and help accelerate the widespread adoption of green ammonia as a marine fuel.”
Shipping container company ANL has opted to pursue the LNG route with a recently introduced LNG-powered container vessel into its AAX-S fleet.
A spokesperson for ANL said LNG significantly improves air quality.
“Additionally, LNG vessels are also biomethane and e-methane ready due to the chemical similarity of the fuels, presenting a pathway to renewable low-carbon energy, reducing emissions significantly compared to Very Low Sulphur Fuel Oil (VLSFO),” the spokesperson said.
“ANL conducted Oceania’s first Biofuel trial in 2022, reporting an approximately 20% carbon dioxide reduction. Following this, in 2023, we further invested into Biofuel to 9% of bunker.
“As a Group, we are currently using biofuel and LNG and are investigating alternative fuels such as ammonia and methanol.
“Biofuel, a blended or ‘drop-in’ fuel is more of a focus for ANL as it is compatible with all but one vessel in our current fleet.”
At a global level to achieve net zero carbon by 2050, the CMA CGM Group has invested nearly €20 billion in LNG and methanol-powered ships. By 2029, it will have a fleet of 153 ships capable of using low-carbon energies (biogas, biomethanol and synthetic fuels).
CMA CGM partnered with Nike to use sustainable biofuel for the transportation of 36% of their volume between 2023, and 2024.
Retrofitting of 100 vessels with bow bulbs, propeller upgrades and silicone paint providing upwards of 5% fuel savings.
The federal government has thrown its weight behind low-carbon liquid fuels (LCLF) as part of its Future Made In Australia program.
Minister for climate change Chris Bowen and transport minister Catherine King have committed $250 million to accelerate the pace of Australia’s growing domestic LCLF industry.
This funding is part of the $1.7 billion Future Made in Australia Innovation Fund and will be provided as grants to support pre-commercial innovation, demonstration and deployment.
Australia’s domestic LCLF industry will focus on supplying sustainable aviation fuel and renewable diesel in liquid fuel-reliant sectors, including transport (aviation, heavy vehicle, rail and maritime), mining, agriculture and construction.
The federal government has invested $33.4 million across five sustainable aviation fuel projects, including LCLF production facilities in Bundaberg and Townsville, and enabling the supply of sustainable aviation fuel at Brisbane Airport.
Global container shipping company Hapag-Lloyd has come up with an intriguing carbon reduction footprint plan.
Its Ship Green program is an additional optional service for clients to directly book an emission-reduced shipment online.
By adding Ship Green to an existing Hapag-Lloyd booking, customers get a choice to reduce 25, 50, or 100% emissions of the ocean leg of each shipment.
The company says it wants clients to join them in their efforts to make shipping climate neutral.
“Hapag-Lloyd is fully committed to the 1.5-degree target of the Paris Agreement. By 2030, the absolute greenhouse gas emissions of the company’s fleet are to be reduced by around a third compared to 2022 – in what will be another step towards net-zero fleet operation by 2045.”
It has 24 ships to be built in China and equipped with state-of-the-art, low-emission and fuel-efficient high-pressure liquefied gas dual-fuel engines. In addition, these vessels can be operated using biomethane, which can reduce carbon dioxide emissions by up to 95% compared to conventional propulsion systems.
The new ships will also be ammonia ready. Delivery will take place between 2027 and 2029.
Viva Energy is trialling Australia’s first commercial cruise ship on marine biofuel.
The trial with Royal Caribbean Group’s Celebrity Edge started on 5 April when the ship sailed from Sydney.
It aims to evaluate the performance and carbon reduction benefits of marine biofuel, designated as B20, which consists of 80% marine distillate and 20% locally sourced B100, primarily derived from Australian used cooking oil.
Viva said the trial provides a unique opportunity to assess the low-carbon fuel's performance, supported by Viva Energy's extended marine supply chain in Port Jackson.
This supply chain, underpinned by barge assets operated in collaboration with Polaris Marine, demonstrated the operational feasibility of delivering sustainable fuels to the maritime industry.
Celebrity Edge receiving marine biofuel in Sydney Harbour. Image: Viva Energy
Viva Energy’s general manager specialities, marine and defence, Richard Xin, said the trial was a first-of-its-kind operation to deliver marine biofuel to a cruise ship in Australia.
“While the supply of biofuel is not new internationally, this trial is a crucial step towards establishing lower carbon marine fuels in Australia,” Mr Xin said.
The B100 component of the biofuel was International Sustainability and Carbon Certification (ISCC+) certified, which guarantees the provenance of the product, ensuring customers can trace and verify its carbon emission credentials. The B100 was manufactured locally by Just Biodiesel.
Viva Energy is also developing Sustainable Aviation Fuel (SAF) and has entered into an agreement with Virgin Australia to source the fuel for its flights departing from Proserpine, Queensland, between March and July 2025.
SAF, produced from renewable resources such as waste oils, agricultural residues, and non-food crops, is considered the critical game-changer in the aviation industry’s efforts to reach net zero emissions by 2050. This reflects SAF’s significantly lower lifecycle greenhouse gas emissions profile compared to that of conventional jet fuel.
Under the terms of the agreement, Viva Energy will provide Virgin Australia with SAF consisting of Jet A1 and a 30-40% synthetic blend component made from waste and residue feedstocks. The blend is fully compatible with existing aircraft and fuelling infrastructure, and all regulatory and safety requirements.
Through this collaboration, Viva Energy will continue to expand its ability to supply SAF-blended jet fuel across Australia utilising its infrastructure assets, while exploring regional SAF delivery, storage and handling, and direct into-wing dispensing.
Viva Energy is also opening a green hydrogen refuelling station in Geelong, Victoria – a forward looking project in the heavy transport space – and the first of its kind open to the public in Australia.
The service station will fuel a fleet of hydrogen-powered heavy vehicles operating in Geelong for green hydrogen that will be manufactured onsite with renewable electricity and recycled water.
The service station is part of the Viva Energy Hub in Geelong.
Viva Energy is developing a tyre-recycling facility in Melbourne to convert up to 80,000 tonnes of used tyres per year, contributing to the manufacture of lower-carbon fuels.
The company has signed a memorandum of understanding with Canadian resource recovery and advanced recycling business Klean Industries to collaborate on a pre-feasibility study for the establishment of a tyre-recycling facility to recover sustainable resources.
Viva Energy has also announced several projects to utilise alternative feedstocks at the refinery made from soft plastics, tallow, and used cooking oil.
Rio Tinto has successfully trialled renewable diesel across its network of Western Australian ports, railways and mines.
The trial was carried out in partnership with global renewable diesel producer Neste and Australian fuel supplier Viva Energy giving Rio Tinto an understanding of how renewable diesel could be integrated across its Pilbara operations.
Neste allocated 10 million litres of renewable diesel from used cooking oil for the trial which was blended with fossil diesel to create a mix with about 20% renewable diesel. It was then distributed across Rio Tinto’s Pilbara iron ore operations for use in rail, marine, blasting, haul trucks, surface mining equipment and light vehicles.
The four-week trial was held in January and February 2025
Singapore-based AET, part of the MISC Group, which is an owner and operator of crude, petroleum and specialist tankers, is striving to achieve net zero by 2050.
Its CEO, Nick Potter, said to do that it is expanding its fleet of LNG dual-fuel vessels and advancing the world’s first ammonia dual-fuel Aframax tankers, to integrating biofuels, energy-efficiency technologies, and broader emissions-reduction strategies wherever feasible.
The business has built a fleet of 11 advanced LNG dual-fuel vessels, which Mr Potter said were amongst the most environmentally friendly ships in the tanker market today.
Mr Potter said LNG wasn’t the end point but was the most viable lower-carbon solution that is widely available today, reducing emissions by up to 23% on a well-to-wake basis when compared to conventional marine fuels.
“LNG has an established regulatory and safety regime, proven technology and can ease compliance with FuelEU Maritime and IMO MEPC 83’s mid-term measures,” Mr Potter said.
“Furthermore, bio-LNG can offer further lower emissions per unit of energy than fossil-based LNG, although it is not readily available yet. Longer term, synthetic LNG has the potential to be a net-zero carbon fuel that has the advantage of utilising current infrastructure for supply. That’s a key advantage.
“Other net zero carbon fuels will take significant time to come online. LNG, combined with energy efficiency technologies, is an effective platform which can provide a pathway to net-zero over the long-term.”
Ships moving around using green fuel gives hope
Professor Peta Ashworth, Curtin University
Among alternative fuels, it is ammonia that has generated the most headlines for AET, with the company’s move to order three ammonia dual-fuel Aframaxes from Dalian Shipbuilding Industry Co (DSIC).
“We believe ammonia holds significant potential as a net-zero carbon fuel,” Mr Potter said.
“Other industrial sectors are considering ammonia as a fuel which helps scale total demand, in turn enabling its use as a marine fuel. Transportation of bulk ammonia also provides a more competitive alternative to hydrogen carriage increasing its likelihood of success as a long-term solution.”
He said ammonia is only one piece of a multi-fuel, multi-faceted strategy and AET is actively evaluating and investing in a range of emerging fuels, particularly in markets where local conditions make them viable, such as ethanol in Brazil.
While green fuels are doing their bit to reduce carbon dioxide emissions there are plenty of other initiatives taking place.
Australian maritime engineering company OMC International provides digital port optimisation and risk management technologies that are enabling ports and shippers to reduce CO2 emissions.
An OMC spokesperson said its Dynamic Under Keel Clearance technology, DUKC, allows ships to load to their maximum safe sailing drafts based on the prevailing environmental conditions and the specifics of the vessel and transit. This allows the ship to increase the amount of cargo it can carry, which reduces carbon dioxide emissions on a per tonne-km basis. It means the same volume of cargo is moved on fewer vessels.
“At Port Botany, DUKC was used to allow the deepest ever container vessel to arrive into Australia. Through DUKC, OMC is assisting a bulk liquids shipper to increase the amount of fuel they are bringing into Australia on each vessel. The fuel use per voyage is unchanged, but the vessels can arrive with up to one metre additional draft which could equate to an additional 10,000 tonnes of cargo. That cargo is effectively shipped emissions free,” the spokesperson said.
The technology also means the ship can sail with less tide than would otherwise be allowed. This enables the vessel to minimise delays while waiting for high water, thereby reducing overall emissions. The technology can also be used to tailor transit speeds, allowing for vessels to optimise fuel consumption on the transit into port.
“Our technologies are also used to minimise the amount of dredging that is required, which has significant environmental benefits. A case study from the Port of Lyttelton in NZ highlighted how DUKC reduced the required capital dredging requirements by 43%.”
This article appeared in the June-July 2025 edition of DCN Magazine