Beyond Shipping: How Other Sectors Will Fuel Maritime Decarbonization

The low-carbon fuel transition is gaining momentum, but much of the early demand is coming from sectors outside maritime. Road transport, power, chemicals, and aviation are moving quickly to decarbonize - and in doing so, they are shaping the market for biofuels, renewable methane, ammonia, and methanol.

Shipping will rely on many of the same fuels. But it is not the primary mover of demand for any of these fuels, and it cannot build the needed low-carbon-fuel supply chains alone. Its path to decarbonization will be influenced by the decisions and pricing of other sectors, which are locking in supply, influencing policy, and setting the pace for scale. Technology breakthroughs and regulatory action - such as adoption by the International Maritime Organization (IMO) of the Marine Environment Protection Committee’s proposed MEPC 83 net zero framework - could accelerate progress. But even with such shifts, structural change before 2030 is likely to be incremental.

This puts a premium on action by individual shippers and by the sector as a whole. To remain competitive on time and cost, maritime players must engage with the broader fuel ecosystem now. This article examines the major low-carbon fuel options, the current market makers for each, and the steps necessary to secure viable pathways to supply.

Published by Boston Consulting Group.

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