The shipping industry is the backbone of global trade and can play a key role in enabling global decarbonization by utilizing low-carbon fuels. The industry’s emissions have increased by 20% over the past decade and currently account for around 3% of the world’s GHG emissions.
The International Maritime Organization (IMO) has set goals to reduce GHG emissions from shipping, including:
- Reducing GHG emissions by at least 20% by 2030 compared to 2008
- Reducing GHG emissions by at least 70% by 2040 compared to 2008
- Achieving net zero GHG emissions from international shipping by 2050
At Avina Clean Hydrogen , we expect potential regulatory developments such as an IMO GHG levy or fuel standard as well as the FuelEU Maritime initiative to encourage the further expansion of the E-fuel and Clean Ammonia market to meet decarbonization targets. As such, we are focused on scaling production of low carbon fuels such as Clean Ammonia and e-Methanol for the maritime sector.
Ammonia production is responsible for nearly 2% of global CO2 emissions, making it the largest CO2-emitting chemical industrial process in the world. Around the world, 98% of ammonia plants use fossil fuels, primarily natural gas (72%) and coal (22%). By utilizing carbon capture and sequestration processes as well as renewable energy powered electrolysis, our plants produce clean ammonia with a significantly lower carbon footprint. Clean ammonia produced from our facilities can serve the European markets that are implementing Carbon Border Adjustment Mechanism (CBAM) as well as serve Asia’s import demand which is largely driven by the power sector.
The prospects for e-Methanol as a shipping fuel of the future are also promising given its lower lifecycle emissions. e-Methanol is the most market ready marine fuel. At Avina Clean Hydrogen, our priority is in scaling e-Methanol production to meet growing maritime demand. e-Methanol requires a source of carbon neutral CO2, as well as green hydrogen. While our initial e-Methanol production is expected to utilize non-biogenic CO2, e-Methanol is expected to become increasingly competitive by the mid- 2030s using biomass-derived CO2.
Aviation is a major contributor to greenhouse gas emissions. Nearly 2.5 percent of today’s carbon emissions come from the aviation sector and aviation’s share of global emissions is projected to rise in coming years as other economic sectors decarbonize at a faster pace.
Industry targets and government policies are incentivizing the use of low carbon fuel in air transport as a means to mitigate aviation sector emissions. Airlines carrying 83% of global air traffic have targeted net zero emissions by 2050. Global demand for jet fuel expected to increase to over 230 billion gallons by 2050.
Sustainable Aviation Fuel (SAF) is expected to play a critical role in decarbonizing the aviation sector. SAF, often in the form of biofuel, has the potential to reduce the carbon intensity of aviation sector by more than 80 percent and can be used in today’s aircraft. Blending mandates and SAF targets are being introduced globally.
At Avina, we are focused on scaling SAF production to meet the growing supply requirements from the aviation sector. We utilize the Alcohol-to-Jet technology, commercialized by Swedish Biofuels and licensed by KBR to convert alcohols into SAF by removing the oxygen and linking the molecules together to get the desired carbon chain length. Avina’s process produces a cost competitive SAF at a 60% lower carbon intensity relative to conventional jet fuel.
Avina Clean Hydrogen supports the transition to green hydrogen in transportation by providing infrastructure development and technological collaboration. We enable zero-emission mobility, meeting customer needs for environmental sustainability, range, and fuel availability.
Avina offers compressed and liquefied hydrogen solutions for convenient storage and transportation. We work with stakeholders to expand hydrogen refueling infrastructure, promote technology adoption, and establish a reliable supply chain. Avina’s efforts raise awareness and educate customers about the benefits of green hydrogen in transportation.
Our support drives the widespread adoption of clean and sustainable transportation options.