Supported a Global Shipper in developing its future fuels strategy, underpinned by economic, technical and market assessments of alternative fuels and evaluation of supply security outlook
Situation
A Global Shipper was looking to determine the optimal pathway for achieving long-term fuel decarbonization
There was a range of potential low and zero carbon alternatives, including hydrogen-based fuels, but no consensus existed for the optimal solution
There was a need to understand whether the identified low carbon fuel alternatives were viable at the scale required to support the client and the broader industry
Approach
Short-listed the leading alternative fuels based on expert input and high-level techno-economic assessment
Performed in-depth future-oriented analysis of the shortlisted fuels:
Assessed whether and how the technical challenges for the widespread use of the fuels could be overcome
Quantified the potential economic impact of transitioning to the new fuels
Assessed likely competitive position against new sectors that could represent future supply competition for similar fuels
Defined the market conditions required for the shortlisted fuels to become economically viable and developed the long-term roadmap and short-term opportunities to drive the forward transition
Impact
Created confidence for the client around the future fuels to bet on for the long-term
Clarified where in the fuel value chain the client should focus on and how to ensure security of supply in the future
Identified key market signposts that will be critical to monitor over time to ensure staying on the most economical decarbonization pathway