IBIA Americas Webinar Highlights Emerging Trends in Alternative Fuels
IBIA hosted a landmark webinar focusing on alternative fuel solutions in the Americas. Titled “Where and What Alternative Fuels Can I Find in the Americas?”, the event brought together industry leaders to discuss the challenges and opportunities presented by emerging fuels such as biofuels, LNG, methanol, and ammonia.
A Regional Lens on Global Challenges
Adrian Tolson, IBIA Vice Chair, emphasised the importance of addressing fuel-related issues within the Americas’ context. This webinar marked a step toward strengthening IBIA’s regional presence and aligning stakeholders on sustainable energy transitions.
Key Insights from Industry Experts
Biofuels: Infrastructure-Ready and Cost-Effective
Mark Mason from PBF Energy highlighted biofuels, particularly renewable diesel, as a “drop-in” solution. Renewable diesel can integrate seamlessly with existing infrastructure, making it attractive for immediate deployment. However, Mason pointed out challenges with logistics and the reliance on state-level incentives like California’s Low Carbon Fuel Standards (LCFS) to make these fuels economically viable.
LNG: A Competitive Option for the Americas
John Lindquist of Stabilis Energy highlighted LNG as a cost-effective alternative fuel, supported by the U.S.’s abundant supply and stable Henry Hub pricing. While large-scale LNG facilities focus on exports, scaling LNG bunkering will require investment in small-scale infrastructure to serve DF/LNG-fuelled ships domestically.
Lindquist noted growing LNG adoption on the U.S. East and West coasts, with existing infrastructure providing a solid foundation. He emphasized that increased customer commitments through term contracts are driving this growth, with Stabilis Solutions seeing strong interest from customers.
Methanol: The Next Big Player
George Andrush from Nacero detailed plans to develop a low-carbon methanol production facility on the Texas Gulf Coast. The project, slated to commence operations in late 2029, will focus on low-carbon methanol with a portion coming from renewable feedstock as a marine fuel. Andrush noted increasing demand for low carbon intensity methanol to supply the expanding methanol-fuelled vessel fleet, but lack of long-term offtake agreements for project financing and regulatory support remain hurdles.
Ammonia: Long-Term Potential
Stephen Laino of Poten & Partners outlined the potential for ammonia as a zero-carbon marine fuel. While the production of green ammonia remains expensive, its scalability and compatibility with future technology could make it a viable solution by the mid-2030s. Laino noted challenges in infrastructure investment and competition with other industries for green ammonia.
A Complex Road Ahead
The discussions underscored a shared challenge among all alternative fuels: balancing cost, infrastructure readiness, and regulatory incentives. Competition from other industries for renewable resources further complicates the pathway for the marine sector. Despite these challenges, the panellists agreed that the Americas are well-positioned to lead in LNG and methanol development, with biofuels and ammonia emerging as longer-term options.
Looking Forward
The IBIA Americas board aims to continue fostering dialogue and collaboration through future webinars. These events are essential in navigating the complexities of sustainable fuel adoption and achieving global decarbonization goals.
For more information and updates, visit the IBIA website or become a member to join the conversation on shaping the future of maritime fuels.
Presentations:
Mark Mason – https://bit.ly/AWNOV24MM
John Linquist – https://bit.ly/AWNOV24JL
George Andrush – https://bit.ly/AWNOV24GA
Steve Laino – https://bit.ly/AWNOV24SL