#3 Peter Müller-Baum, CIMAC: »There has to be a market for synthetic fuels to get ahead«

Show notes

This time the maritime energy transition is one of the most important topics of the SMM maritime trade show taking place in Hamburg from 6 to 9 September. »In 2018 it was more of a niche topic, but today it is THE topic. I guess we will see some innovations regarding the engine itself. Whether it is about new fuels like methanol or ammonia as well as other innovation which allow the maritime business to decarbonise in the future,« Müller-Baum says on the HANSA SMM Podcast. The SMM gives different stakeholders of the industry the ability to talk to each other – particularly important in times where »we have an unclear situation regarding the future development of fuels, propulsion systems and the maritime business itself. We life in very unsecure times. Having that in mind, it is even more important to talk to the different parties and see what is possible in the future to solve the challenges. In that regard, an event like SMM is very important to proceed with the discussion, to come to solutions and also to get new ideas for future development,« he says. It is CIMAC’s position that the internal combustion engine will play the most important role for deep sea shipping in the future, »that is for sure«. »However, you can combine it with electrification, fuel cells or other means to improve the complete system, but actually the kind of fuels, how they will be produced in the future and how the shipping industry may benefit from that, are the most important questions for CIMAC«, Müller-Baum says. Methanol, ammonia, pure hydrogen or substitutes for conventional fuels like synthetic diesel – the CIMAC secretary general expects to see »at least three or four different options in the 2030s. From our point of view that is methanol, ammonia, synthetic methane and maybe a diesel substitute.« The latter would be the most expensive and thus least realistic option. Müller-Baum says that – at least in theory – there should be not a problem to supply the world with green energy. »10% of the land surface of Australia would suffice to completely cover the world’s energy demand,« he says. »Of course, that is theory, but it shows that with renewable energy from sun, wind and water we can cover this demand.« For now, the industry and the whole world is faced with a chicken and egg problem. »Nowadays we have to offer technologies to use these kinds of synthetic fuels, we need to start with a market ramp up, ship operators need to order ships that can bunker and use these fuels. There have to be some first movers who take the risk.« The billion dollar question is: Who will produce these fuels in an amount sufficient to cover the demand? »To get that market ramp up started, we need the regulator. Without regulation there is no need to produce these fuels. Fossil fuels will always be cheaper. We need actions from the IMO or other actors like the EU. CIMAC does not prefer regional solutions. But due to IMO’s slowness, Müller-Baum can understand the EU’s impatience. He is confident that the EU regulations can speed up the ramp up of green solutions – without interfering too much with the international business. »This is difficult, but not impossible,« he says. His message: »There has to be a market for synthetic fuels to get ahead.«