Amazon (AMZN, Financial) and IKEA are working with 36 other firms, including other shippers, to increase demand for ocean freight low-carbon fuels. They expect to seek shipping companies' and fleet operators' interest in tendering contracts involving carrying goods using to-zero emission e-fuels such as e-methanol through the Maritime Zero Emissions Buyers Alliance in January. It is intended to drive more production of e-fuels, which are manufactured from renewable electricity and carbon dioxide, to help the maritime business reduce greenhouse gas emissions to zero by 2050.
This group's work is essential because shipping accounts for over 80% of the world's boxes and about 3% of international greenhouse gas emissions. E-fuels are considered a long-term solution to green ocean freight, focusing on the cost and supply advantages of fossil fuels. Several allied organizations, such as Amazon and IKEA, seek to develop a market for these scarce fuels.
The contracts, set to commence in 2027, will move the BREE sort equivalent of more than 1.4 million TEUs. The change may further eliminate about 470000 metric tons of GHG emissions. Some current players, such as Maersk and Evergreen, are already gearing up to utilize e-methanol on their vessels to lock in their fuel sources and seek cost optimization with improving market conditions. While members are willing to pay a premium for the e-fuels now, they expect that as the uptake grows, the prices will drop.
