In 2022, SEA-LNG emphasized the importance of making informed newbuild investment decisions that will influence greenhouse gas emissions for the next 25-30 years, the typical lifespan of a vessel. They argued that alternative marine fuels should be compared on an “apples with apples” basis, noting that discussions often juxtapose green ammonia and methanol with fossil LNG, which can skew perceptions.
Recent studies have explored the potential of LNG as a transitional fuel in shipping decarbonization, contingent on the adoption of “ammonia-ready” vessels. Without strict policies, LNG investments could become stranded assets, while methanol may divert attention from ammonia without providing significant benefits. SEA-LNG criticized a UCL study for suggesting that only e-ammonia is a viable decarbonization solution, noting that all synthetic fuels face challenges in scaling due to the high costs of renewable hydrogen.
A study from Canadian and Saudi researchers highlighted that no single fuel dominates across climate or cost perspectives. Hydrogen emerged as the top choice for climate-focused scenarios, while ammonia showed resilience in balanced conditions. Methanol and biodiesel occupy transitional roles, each with specific limitations. The findings suggest that maritime decarbonization will require a multi-fuel approach rather than a single solution, as the transition will likely occur incrementally.
