COST-EFFECTIVE MARINE FUELS AND PROPULSION TECHNOLOGIES FOR NORDIC SHIPPING – THE ROLE OF HYDROGEN VERSUS BIOFUELS

Paper in proceeding, 2023

Decarbonizing transport is one of the key energy challenges in the Nordic countries. Enhanced introduction of renewable marine fuels is required. The aim of this study is to assess which alternative fuels and propulsion options that are cost-effective for shipping in the future Nordic region (Sweden, Norway, and Denmark) striving to reach stringent CO2 emissions reduction targets by 2050, in an energy system context. The role of hydrogen (and electrofuels) versus the role of biofuels is in focus. The assessment indicates that marine biofuels (primarily biodiesel and methanol) as well as compressed hydrogen represent cost-effective mitigation measures in the Nordic shipping sector both in the mid (2030) to long term (2050) for different GHG reduction pathways. With more stringent CO2 targets, also synthetic natural gas i.e., renewable methane represents a cost-effective solution. The introduction of policies specifically promoting renewable fuels in the shipping sector such as a tax on fossil marine fuels and a blending requirement does not influence the cost-effectiveness of marine fuels in the modelling. However, in reality the future role of hydrogen, electrofuels, and biofuels for shipping may depend on the design and details of the policies introduced for promoting alternative marine fuels. Keywords: biofuel, hydrogen, electrofuels, carbon dioxide (CO2) emission, cost-effectiveness, shipping.