Shipping decarbonisation: feedback from industry

On this page:

• Roundtable 1 - Alternative fuels and energy - February 2025
• Roundtable 2 - Transitional arrangements to reduce maritime emissions - June 2025
• Roundtable 3 - Alternative fuels and emerging technology - November 2025
• Have your say

Introduction and context

Participants acknowledged the maritime sector faces significant challenges in adopting alternative fuels and technologies to meet decarbonisation goals. 

Key considerations discussed included:

• the role the Australian Government, and AMSA, have in enabling decarbonisation
• the importance of collaboration between all stakeholders involved in the decarbonisation transition
• various alternative fuels and their potential, opportunities, challenges, scalability, and future prospects. 

Key considerations

Australian Government’s role in enabling decarbonisation

Discussions highlighted industry interest in clear pathways and policy to support the maritime sector’s transition to alternative fuels and energy sources. Comparisons were drawn from other transport sectors that have decarbonised, such as buses, and the role of government in supporting the transition. The importance of clear guidance, policy certainty, and strategic investment to ensure the maritime sector progresses on decarbonisation targets was highlighted.

Participants raised that AMSA is regarded as the ‘gold standard’ for vessel safety and standards in the Asia-Pacific region and has a significant role in maintaining this standard and providing regional support as the sector transitions. 

Participants expressed interest in AMSA playing a proactive role in enabling and supporting the safe introduction of new fuels and technologies as part of the maritime sectors’ transition to decarbonisation. 

There was discussion on the importance of ensuring flexibility in the approach to alternative fuels, acknowledging the need to avoid committing too early to a single source that may not prove to be viable in the long term.

Collaboration to support decarbonisation

The discussion highlighted the importance of a coordinated approach to decarbonisation, with industry, government, and regulatory bodies working together to create clear and consistent policies.

Participants raised the importance of aligning industry initiatives with broader national and international decarbonisation strategies and objectives.

Participants raised that the global maritime transition requires cooperation and collaboration across the whole supply-chain and sector-wide roadmaps will be critical to achieving long-term decarbonisation goals.

Participants saw maritime decarbonisation as an opportunity for Australia to position itself as a leader in decarbonisation technology, training and response.

Alternative fuels and energy sources

Biofuels

Participants raised the following views on biofuels:

• Maritime use: Biofuels were discussed as a potential transitional fuel. Trials of biofuels, particularly in Australia, are ongoing. The biofuel market faces challenges in Australia due to small-scale infrastructure and logistical issues e.g. trucking timeframes and limitations. Despite being more expensive than traditional fuel, biofuels are a proven, lower-risk option compared to more novel fuels like ammonia and methanol.
• Challenges: Participants noted challenges with large-scale adoption, including limitations in small-scale infrastructure, bunkering capabilities, supply issues and issues with large-scale sourcing of products (feedstock) to develop biofuels. 
• Opportunities: The adoption of biofuels requires collaboration across the industry. Lessons from international markets, such as Singapore’s incentivisation of large-scale biofuel production, were referenced. It was noted that the regulatory frameworks must evolve to keep pace with innovation. The recent amendments agreed by the IMO to reduce barriers to carrying and supplying fuels with a higher biofuel blend content was seen by participants as a positive outcome.

Methanol

Participants raised the following views on methanol:

• Maritime use: Methanol was seen by participants as a viable alternative fuel, particularly due to its lower toxicity relative to other alternative fuels. The potential of bio-methanol derived from food waste was discussed. While methanol remains of interest, it is not currently being prioritised over other fuel options by many participants.
• Challenges: Discussions highlighted the need for further investment in production and infrastructure to improve cost-effectiveness and accessibility.
• Opportunities: There was recognition of Australia’s potential to be a leader in methanol adoption, provided that the right infrastructure and market conditions are in place.

Ammonia

Participants raised the following views on ammonia:

• Maritime use: Ammonia was identified as a potential long-term fuel option due to its scalability and cost-effectiveness. 
• Challenges: Despite its advantages, concerns were raised about NOx emissions and the need for appropriate technology, training and standards to mitigate these impacts. It was also raised that ammonia requires significant efforts to address safety concerns. Training, certification, and risk assessments are crucial for the safe adoption of ammonia in shipping.
• Opportunities: The discussion emphasised AMSA’s role in facilitating trials, supporting risk assessments and developing an environment that enables informed decision-making on ammonia and other alternative fuels.

Hydrogen

Participants raised the following views on hydrogen:

• Maritime use: Hydrogen was acknowledged as a promising and high potential green fuel. Some companies are exploring hydrogen in dual-fuel systems. 
• Challenges: Discussions highlighted significant challenges regarding, economic viability due to high production and storage costs, transport, and infrastructure development. It was suggested that limited demand within the maritime sector is another challenge to large-scale adoption.
• Opportunities: There was recognition of Australia’s potential in the supply of hydrogen, provided that the right infrastructure and market conditions are in place.

Electrification and shore power

Participants raised the following views on electrification and shore power:

• Electrification: Electrification was discussed as a solution primarily suited for vessels undertaking short-haul voyages due to energy storage limitations on longer voyages. It was noted that some countries have already implemented battery-electric vessels with promising results.  
• Shore power: The adoption of shore power, where ships are plugged into electricity while at berth to reduce emissions, was seen by participants as a promising solution for port-based emissions reduction. It was noted that Sydney and Adelaide are considering shore power adoption.
• Challenges: Lack of consistent infrastructure across ports is seen as a significant barrier to scaling this solution globally. The high implementation costs and the need for sufficient renewable electricity supply was also raised by participants.

Onboard carbon capture

Participants raised the following views on onboard carbon capture:

• Maritime use: Onboard carbon capture was discussed as a potential mechanism for offsetting emissions, particularly where alternative fuels may not provide a fully zero-carbon solution. It was raised that consideration is still being given to the productive use of captured CO2.
• Challenges: Participants raised that there are high costs associated with capturing and storing CO2 onboard, and there is a lack of a market for selling captured CO2. Therefore, waste reception at ports and terminals is needed to support this option.

Have your say

If you're involved in the shipping industry, find out how you can have your say on decarbonisation.