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The role of e-fuels in Maritime decarbonisation: insights from the New Energies Coalition study

26 Mar 2025

The maritime sector is at a critical juncture in its journey towards decarbonisation. As global regulations tighten and pressure mounts to reduce greenhouse gas (GHG) emissions, alternative fuels such as e-fuels are emerging as a viable solution. A recent study conducted by the New Energies Coalition, in collaboration with France Gaz Maritime, EVOLEN, and Ricardo plc, provides key insights into the potential of e-fuels to drive sustainable transformation in the shipping industry.

The significance of e-fuels in shipping

E-fuels, produced using renewable electricity and green hydrogen, offer a promising route to significantly lower emissions in the maritime sector. The study evaluates the environmental performance of e-fuels, including hydrogen, e-ammonia, e-methanol, and e-methane, with a focus on their lifecycle emissions and compliance with FuelEU Maritime regulations.

 

The findings indicate that all assessed e-fuels can meet the FuelEU Maritime GHG intensity limits at least until 2040, and in most cases, until 2045—even under conservative emission scenarios. Optimised production and usage pathways could lead to over 90% GHG reductions compared to conventional fossil fuels, ensuring compliance with the 2050 FuelEU targets.

Key challenges and mitigation strategies

Despite their potential, e-fuels are not without challenges. Their environmental impact depends heavily on production pathways, energy inputs, and supply chain management. The study identified several hotspots where improvements are necessary:

Production optimisation

Maximising the use of renewable electricity and integrating waste heat recovery in CO2 capture can enhance overall efficiency.

Engine development

Reducing the use of fossil-based pilot fuels through research and development (R&D) in e-fuel-compatible engines is critical.

N2O and methane emissions

Further advancements in engine design and after treatment technologies are required to curb emissions of nitrogen oxides (N2O) and methane slip.

Fuel transport and storage

Ensuring that tankers transporting e-fuels use renewable or low-carbon energy sources can further reduce lifecycle emissions.

The importance of Lifecycle Assessment (LCA)

A comprehensive lifecycle assessment (LCA) approach is essential to fully understanding the environmental impact of different fuel choices. The study underscores that a well-to-wake perspective is critical to assessing the true emissions footprint of e-fuels. By leveraging LCA methodologies, policymakers and industry stakeholders can make informed decisions that align with sustainability goals and regulatory requirements.

Policy and industry recommendations

To accelerate the adoption of e-fuels in the maritime sector, the study recommends:

  • Developing robust certification systems: ensuring transparent and standardised GHG intensity certification up to the point of refuelling.
  • Investing in R&D: focusing on emission reduction technologies, particularly for methane and N2O mitigation.
  • Optimising fuel production locations: locating e-fuel production sites near refuelling hubs to minimise transport-related emissions.
  • Regulatory frameworks: establishing clear and practical legislation to incentivise low-emission production and propulsion technologies.

Conclusion

The New Energies Coalition study highlights the significant role e-fuels can play in decarbonising the maritime sector. While challenges remain, strategic investments in technology, regulation, and infrastructure can unlock the full potential of these alternative fuels. By addressing key hotspots and ensuring a holistic lifecycle approach, the shipping industry can make meaningful strides towards achieving net-zero emissions by 2050.

Read the full report

 

Tim Scarbrough Black

Tim Scarbrough