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RICARDO IDENTIFIES PATHWAYS FOR INDONESIA TO DEVELOP ALTERNATIVE FUELS FOR SHIPPING

RICARDO IDENTIFIES PATHWAYS FOR INDONESIA TO DEVELOP ALTERNATIVE FUELS FOR SHIPPING

Friday, November 26, 2021 

According to the Global Maritime Forum, a study by Ricardo for its P4G Getting to Zero Coalition Partnership finds that Indonesia’s location, economic development, and vast renewable energy sources make it well suited to produce green maritime fuel.

The report, Indonesia: fuelling the future of shipping – Low carbon shipping fuels for Indonesia’s shipping sector explores the context and potential for the adoption of zero and low carbon shipping fuels through the shipping sector of Indonesia. About 47% of Indonesia’s Gross Domestic Product (GDP) comes from manufacturing, which relies on the export of manufactured goods across the world to large economies such as China and the United States. Being able to offer low carbon fuels to vessels and hence to decarbonise these exports will, according to the study, enable Indonesia to serve a future growing market and facilitate an attractive manufacturing hub to be established as the demand for low carbon goods increases.

Indonesia serves a large number of international vessels and occupies a key position along busy and important shipping routes. Among these are the Strait of Malacca and the Sunda Strait, which open even more international opportunities due to proximity to existing ports in Jakarta. Its strategic maritime position could enable the country to become a key-player in the reaching zero-emission shipping by 2050:

Dr Santiago Suarez De La Fuente, Lecturer in Energy and Transport at University of College London’s Energy Institute, said:“The study has identified that the most suitable options are hydrogen and ammonia for large commercial vessels such as containers and bulk carriers; small passenger and cargo vessels can be supplied through direct and onboard electrification. Along with Indonesia’s insular composition, its shipping traffic capture area, and its regional partners, this positions Indonesia as a key enabler for the decarbonization of the global fleet. Furthermore, this strategic position in the maritime sector allows Indonesia to further advance its ambition in reducing its national carbon footprint.”

Basilio Dias Araujo, Indonesian Deputy Minister for Coordination of Maritime Sovereignty and Energy, said: “Regardless of the millions of tons of CO2 emitted either by Indonesian or foreign ships crossing the Indonesian waters, Indonesia has determination to gradually lower its national carbon emission levels. The Indonesian government has promoted the transition of oil fuel to gas fuel for small boats. However, it is important to collaborate and to have collective actions by domestic maritime and energy industries as well as international organisations, such as the IMO, UNCTAD, and the World Bank to assist our efforts to introduce low-carbon technology.”

However, although there is potential and several pathways available for Indonesia to develop new decarbonised fuels to serve its shipping sector, there lies a challenge in ensuring a sustainable and environmentally sensitive fuel production:

Olivia Carpenter-Lomax, Principal Consultant Engineer at Ricardo Energy & Environment, said: “Production of decarbonised shipping fuels is heavily dependent on the availability of natural resources. Within Indonesia, the options for generating renewable electricity or supplying biofuels in such a way that is truly sustainable, environmentally sensitive, and scalable vary between locations and contexts. The shipping fuel needs vary greatly as well – from servicing the large, international shipping lanes that pass through Indonesian waters, to supporting the thriving domestic shipping trade and transport sector. This means that there is a challenge, and an opportunity, to find the best option for decarbonised shipping fuels for each setting across Indonesia.”

The P4G report was prepared by Ricardo for the P4G Getting to Zero Coalition – a partnership between the Global Maritime Forum, the World Economic Forum and Friends of

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