New nuclear key to reaching 2050 net-zero emissions goal: ABS CEO

The maritime industry will not be able to "bend the curve" to get to net zero by 2050 without new nuclear, said ABS chairman and CEO Christopher J. Wiernicki, speaking at the 7th Annual Capital Link's Singapore Maritime Forum on March 25.

Describing the maritime industry as being in the "early innings" of a decade of change, as it moves into the fifth industrial revolution, marked by decarbonization and digitization, Wiernicki said the industry will need 70% zero-carbon fuels, which will require 10 times more renewable energy than is currently produced, and 30% carbon neutral fuels, which will require 100 times more carbon capture than the world has today.

"Against that backdrop, it is increasingly clear that new nuclear technology is going to be key to meeting the trajectory," said Wiernicki.

New nuclear is a shift to building plants of smaller sizes, for example, reactors that generate 50 to 600 megawatts of electricity, using more advanced, and potentially safer, technologies.

Shipping companies face mounting pressure to cut emissions. The International Maritime Organization has set industry-wide decarbonization targets in the coming decades and aims for net-zero emissions toward 2050, while the EU has included shipping in its Emissions Trading System since 2024, with its FuelEU Maritime regulation on emissions intensity coming into force in January 2025.

IMO needs to steer the 'mid game'

Governments can drive the short game, with the oil and gas industry with energy efficiency retrofits and data-driven optimization, and, the longer-term game with nuclear, Wiernicki said.

However, the IMO will have to drive the "mid game", which will involve the uptake of methanol, ammonia, and hydrogen along with electrification and carbon capture and, crucially, address the "significant" price differential between fossil and alternative fuels, he said.

"We need clarity. We need consistency and a level playing field for the whole industry. Right now, the industry is divided, and there is no clear way forward," said Wiernicki.

He added that a carbon levy to reduce carbon emissions is a "wild card at this point" as everything will depend on how it is configured, implemented and enforced.

"There's a huge question mark over whether this will deliver for the industry, and there is much still to be decided," said Wiernicki.

Shipowners looking to make asset investments with a 25-year horizon need to be able to move forward with certainty, shipping sources at the forum said.

"The IMO holds the keys to all of this, and the time for action is now, whether we as an industry can make 2050 rests largely with the IMO and how it performs in the coming months," said Wiernicki, adding that "commercial gravity alone" is not going to get the maritime industry reach its 2050 decarbonization goals.

LNG set to be ongoing solution

With the present rate of alternative fuel infrastructure development, Wiernicki said LNG will likely be a solution for many years as it is the only alternative fuel which "satisfies" three conditions of safety, availability and infrastructure.

Additionally, LNG is not only a transition fuel, but a fuel with a lot of runway when bio-LNG and synthetic LNG is considered, Wiernicki added.

Platts assessed Singapore LNG bunker price down $35.308/mt from March 21 to $788.632/mt on March 24 and Rotterdam LNG bunker up 16 cents/mt over the same period at $812.812/mt on March 24.

Platts assessed Rotterdam Bio-LNG Bunker 73 cents/mt lower from March 21 to $1,521.73/mt on March 24.