Maritime buyers alliance launches tender for zero-emissions shipping

ZEMBA: Amazon, Electrolux, Philips and partners

Members of the Zero Emission Maritime Buyers Alliance (ZEMBA) have launched a tender process for container shipping powered by zero-emissions fuels. The Alliance includes major consumer brands like Amazon, Electrolux, IKEA, Levi Strauss, Nike, Patagonia, Philips, Schneider Electric and Tchibo.

The Alliance members have estimated an aggregate demand of 600,000-plus twenty-foot container units (TEUs) over a three year period, covering a distance of 6,000 nautical miles (~11,000 km). ZEMBA indicates that a book-and-claim approach will be used to certify the zero-emissions fuels, and that a “green premium” will be negotiated with the successful bidder. At least a 90% reduction in GHG compared to conventional fuels will be required for the winning bid:

ZEMBA is seeking bids for shipping services, from individual carriers or consortiums, that achieve at least a 90% reduction in greenhouse gas emissions compared to traditional fossil fuels on a lifecycle basis. Fuel choice will address safety and land use concerns, particularly those that relate to biogenic substances. Delivery of shipping services powered by new, cleaner fuels is anticipated in 2025.

ZEMBA RfP requirements, from coZEV’s official press release, 12 Sept 2023

Maritime shipping is an essential service for global companies like Amazon, and we urgently need this sector to make clean fuel investments to reach our climate goals.

Adam Baker, Vice President of Global Transportation at Amazon in coZEV’s official press release, 12 Sept 2023

Decarbonizing the global movement of our cargo requires collaboration. We know from experience that moving an industry cannot be done by individual companies but is best achieved by a collection of forward-thinkers who are ready to show the way, as leaders together.

Paolo Galli, VP Group Logistics, Electrolux Group in coZEV’s official press release, 12 Sept 2023

Our ability to provide high-quality healthcare depends on a healthy planet. We have been carbon-neutral in our operations since 2020 and continue to innovate and bring to market, scalable solutions to reduce both our own environmental impact and enable our customers to achieve their environmental sustainability goals.

Robert Metzke, SVP and global Head of Sustainability at Philips in coZEV’s official press release, 12 Sept 2023

We’re building the business case for a surge of investment in zero-emission maritime solutions, including new fuels and technologies that are not yet commercially available…Advanced market commitments can be a game changer for harder-to-abate sectors like ocean shipping.

Ingrid Irigoyen, President and CEO of ZEMBA in coZEV’s official press release, 12 Sept 2023

ZEMBA is an initiative of Cargo Owners for Zero Emission Vessels (coZEV), a group of 19 global brands committed to using only zero-emission ships to transport their cargo by 2040.

Progress needs to accelerate to reach 2030 goals

The demand-side initiative from ZEMBA comes as a new report from UMAS and the Getting to Zero Coalition finds the window of opportunity is closing for the global shipping industry to meet its 5% zero-emissions fuels by 2030 target. The report suggests that both the development of fuel production pipeline and delivery of fuel-capable vessels may be insufficient to meet the target, with policy progress from industry & national governments required. The report authors argue that a “robust” demand base must be established to properly scale the use of new maritime fuels like ammonia.

The last 12 months have seen a positive shift in maritime decarbonisation efforts. Now is the time to see strong progress in terms of commitment for zero carbon fuels and freight from the industry so that the needed rapid scale-up of these fuels in the energy mix is achieved.

Domagoj Baresic, Research Associate at UCL and Consultant at UMAS in his organisation’s official press release, 18 Oct 2023

The technology to facilitate production, distribution and bunkering of scalable zero-emissions fuels (SZEF) is progressing well, however the extent of its scale-up throughout the rest of the decade is not guaranteed. To become fully aligned with the 2030 5% breakthrough target, all sectors of the maritime industry must rally around the historic ambitions set out in the 2023 IMO GHG Strategy and work to establish a robust demand base for SZEF, thereby providing producers with the confidence they need to invest in new capacity projects.

James Stewart, Research Assistant at UCL and Consultant at UMAS in his organisation’s official press release, 18 Oct 2023