Global offshore wind industry continues to balloon, adding 6.1 GW capacity in 2019 and has continued to grow through the Covid-19 pandemic. In Europe the sector has now reached a scale and size where the operational and contractual complexities are comparable to northern European oil and gas projects. The market primed for take-off in the Asia Pacific region and significant projects off the US coasts are coming onstream.
Ammonia, along with methanol, hydrogen fuel cells and batteries all have the potential to play their part in the powering of marine engines – but in the short term oil-price volatility could cause headaches for bunker buyers. Biodiesel enables vessel operators to reduce their carbon footprint by 20-30% without the need for engine modifications. However, the veg-oil derived fuel needs to be stored carefully, is easily contaminated and throws up challenges of lubricity and its flow properties need monitoring. Provision of credit for bunkers was one of LQM’s key value propositions but that a number of smaller bunker traders were exiting the sector.