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Posted: February 5th, 2023
Analysis of Low-Carbon Alternative Marine Fuels to Support Decarbonization of Short-Sea Shipping Between China and Japan
The shipping industry is facing increasing pressure to reduce its greenhouse gas (GHG) emissions and contribute to the global efforts to mitigate climate change. The International Maritime Organization (IMO) has set ambitious targets to reduce the carbon intensity of international shipping by at least 40% by 2030 and 70% by 2050, compared to 2008 levels, and to halve the total annual GHG emissions from shipping by 2050, with a view to achieving full decarbonization as soon as possible . To meet these goals, the industry will need to adopt low- and zero-carbon technologies and fuels that can significantly reduce the carbon footprint of maritime transport.
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Short-sea shipping (SSS), which refers to the movement of cargo and passengers by sea over relatively short distances, is an important segment of the shipping sector, accounting for about 40% of the global maritime transport . SSS plays a vital role in facilitating regional trade and integration, enhancing coastal connectivity, and alleviating road congestion. SSS also has the potential to reduce GHG emissions per tonne-kilometer of cargo transported, compared to other modes of transport such as road or rail . However, SSS still relies heavily on conventional marine fuels, such as heavy fuel oil (HFO) and marine gas oil (MGO), which have high sulfur content and emit large amounts of carbon dioxide (CO2), nitrogen oxides (NOx), sulfur oxides (SOx), and particulate matter (PM) .
In this context, this paper aims to analyze the feasibility and implications of using low-carbon alternative marine fuels to support the decarbonization of SSS between China and Japan, which is one of the busiest and most important SSS routes in Asia. The paper will first provide an overview of the current status and trends of SSS between China and Japan, as well as the existing and upcoming regulations on GHG emissions from shipping in the region. Then, the paper will review the main characteristics, advantages, and challenges of different low-carbon alternative marine fuels that could be used for SSS, such as liquefied natural gas (LNG), biofuels, methanol, hydrogen, and ammonia. Finally, the paper will compare the environmental, economic, and technical performance of these fuels for SSS between China and Japan, based on a multi-criteria analysis framework.
Current Status and Trends of SSS between China and Japan
China and Japan are two major economies and trading partners in Asia, with a bilateral trade volume of $317.6 billion in 2020 . Maritime transport is the dominant mode of transport for their trade, accounting for more than 90% of their total cargo volume . SSS is particularly important for their trade, as it connects their coastal ports and facilitates the exchange of goods such as raw materials, intermediate products, finished goods, and containers. According to a recent study by the International Transport Forum (ITF), SSS between China and Japan accounted for about 18% of the total SSS in Asia in 2018, with an annual cargo volume of 177 million tonnes . The main commodities transported by SSS between China and Japan are coal, iron ore, steel products, chemicals, machinery, vehicles, and containerized cargo .
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The demand for SSS between China and Japan is expected to grow in the future, driven by several factors such as:
- The increasing economic integration and cooperation between China and Japan under various regional initiatives, such as the Regional Comprehensive Economic Partnership (RCEP), the Belt and Road Initiative (BRI), and the China-Japan-Korea Free Trade Agreement (CJK FTA) .
- The growing need for energy security and diversification in both countries, which will increase their imports of natural gas, liquefied petroleum gas (LPG), renewable energy sources, and other low-carbon energy products from each other .
- The rising environmental awareness and social responsibility in both countries, which will encourage them to adopt more sustainable modes of transport and reduce their GHG emissions from shipping .
However, SSS between China
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