Page 11 - Annual Review 2021 full
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Annual Review 2021

            vii.  Bio-LNG can  bring large well-to-wake  GHG       •  The ability to blend the fuel.
                reductions  (although  these  can  be offset by
                methane slip), but at present is limited.          •  In general there is currently  a reasonable
                                                                      amount  of uncertainty  and lack of
            viii. E-LNG expensive but could bring even higher         standardisation  surrounding   blending
                well-to-wake GHG reductions. Huge power               limits  (e.g.  inconsistencies  between
                demand in production.                                 manufacturers and lack of standards).

            Methanol (CH3OH)                                       •  However, the technical  feasibility of using
            i.   Methanol  is currently  widely  handled as a         higher blends of some biofuel options is
                cargo substance with recognised regulations           becoming clearer with pilot programmes
                and guidelines.                                       and trials.

            ii.  There  has been very limited deployment as        •  Other  barriers to short-term deployment,
                a marine fuel to-date, but promising  results         such as practical challenges of recertifying
                achieved by early adopters.                           existing engines and the  onboard retrofit
                                                                      and adaptation required to use some
            iii.  Production uses generally well-established          biofuel types.
                processes, but there  are some feedstock
                constraints.                                   iii.  The  sustainability of biofuels  is heavily
                                                                   dependent on the type of feedstock used.
            iv.  Engine retrofit conversion is possible,  but
                availability of ‘off-the-shelf’ methanol engines is   iv.  Near term biofuels deployment will depend on
                also increasing.                                   policy measures to overcome the  increased
                                                                   costs of biofuels use.
            v.  Onshore infrastructure  and equipment for
                storage and transportation of methanol is well   v.  In  the  mid to  long term,  achieving  higher
                understood in principle.                           biofuels deployment  will rely  on continued
                                                                   policy support, as well as reducing conversion
            vi.  Cost  comparisons  show  that  while  currently   costs for Hydrothermal Liquefaction (HTL)
                more expensive than MGO and HFO, there is          and  pyrolysis  oils, and  increasing  access
                potential for future cost reductions.              to  sustainable feedstocks for Hydrotreated
                                                                   Vegetable Oil (HVO) and Fatty  Acid Methyl
            vii.  All low carbon routes have components at         Esters (FAME).
                an  early stage of commercialisation: Carbon
                Capture  and Storage  (CCS)  for fossil routes,   vi.  There is likely to be competition for oil-based
                gasification for bio/waste routes and combined     feedstocks for HVO and FAME in the  near
                renewable  electricity,  fuel  synthesis  and      term, given demands from road transport
                ultimately  Direct  Air Capture  (DAC)  for e-fuel   and aviation. In  the  longer term,  competition
                routes.                                            could emerge from across the  economy
                                                                   for lignocellulosic feedstocks for HVO and
            viii. While the use of methanol  shows promising       pyrolysis  oils. It is possible  that  governments
                technical readiness in several areas, progress     and regulatory bodies  may respond  to
                towards a position of widespread adoption          concerns over feedstock competition through
                would still be hampered by several commercial,     intervention  or prioritisation efforts, ensuring
                policy and sustainability barriers, as well as the   that  feedstocks are used for applications
                starting point of very limited current use.        that  have  the  fewest  alternative  fuel  options
                                                                   available, such as shipping and aviation.
            Biofuels                                           Followings are  a few promising future  fuels that
            i.   With the  ability to be used as ‘drop-in’     are  currently  in  demonstration  and development
                (substitute without engine modification) fuels or   stages:
                to be blended with existing fossil fuels, biofuels
                have a strong potential use case for  short-   Ammonia (NH3)
                term deployment to realise net GHG emission
                reductions quickly.                            i.   GHG  emissions: To deliver significant  CO2
                                                                   reduction ammonia should be produced using
            ii.  The extent to which they can be directly used     electrolytic  H2 and energy from renewable
                as drop-in fuels depends on:                       sources.

                                                               ii.  Distribution: The production, storage, and


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