Issues

New Fuels,
New Technologies,
New Pathways

The path to achieving the International Maritime Organization’s (IMO) fuel standards and 2050 target includes interim targets through 2040, as well as a fuel consumption minimum of 5% fuel adoption by 2030.

To hit these milestones, the U.S. maritime sector must rely on collaboration across industries and support from the federal government.

The Sustainable Maritime Coalition works with the executive and legislative branches of the federal government to support the accessibility and adoption of alternative maritime fuels and related infrastructure. As countries around the world strive to meet IMO mandates, the United States must move now to remain a leader in the maritime industry, including upgrading our ports and investing into the fueling infrastructure needed to produce domestic sources of clean fuels suitable for the maritime industry.

Addressing the Funding Imbalance

Despite the maritime sector’s economic significance—with shipping responsible for more than 80% of global trade—federal incentives for sustainable technology remain focused on other sectors.

It’s time for the U.S. government to make new investments into the sustainability of the maritime industry, including preparing for the fuels and infrastructure needed to serve ships from across the globe that arrive at our ports.

Policy priorities

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Priority One

Increase Federal Attention on Maritime Investment and Infrastructure

  • The maritime industry has not been well-supported or organized within the federal government, particularly with respect to the intersection of energy and maritime. There is no office in the White House focused on maritime issues.

  • Coordinate national outreach and collaborate with the executive branch to encourage the prioritization of maritime. A federal lead can bring focus to reports and calls to action, including a Sustainable Maritime Grand Challenge, and increase an all-of-government coordination effort.

    • Disseminate The Action Plan for Maritime Energy and Emissions Innovation.

    • Facilitate a Sustainable Maritime Grand Challenge, including working on aggressive fuel targets for production here in the United States.

    • Designate a position within the White House to promote an energy agenda for maritime.

Priority Two

Achieve Tax Parity for Clean Maritime Fuels

  • Current tax incentives leave gaps for maritime fuels. Alternative maritime fuel producers need tax parity to be competitive in the United States and globally.

  • Work with Congress and federal agencies to design and implement incentives for producing alternative maritime fuels. 

    • Amend the Clean Fuels Production Tax Credit (45Z) to include the development of clean fuels for the maritime industry.

    • Amend the Renewable Fuels Standard to include maritime fuel as an eligible transportation fuel type.

    • Extend the Alternative Fuels Tax Credit, which expires in December 2024, to allow time to amend 45Z.

Priority Three

Boost Funding for Alternative Fuels and Other Maritime Technologies

  • Maritime modernization is dramatically underfunded and under-researched compared to other fuels and clean energy technologies.

  • Secure short-term and long-term federal appropriations for alternative maritime fuels and technologies.

    • Increase funding and modify language throughout the Department of Energy to include maritime fuels as a key research and analytical priority.

    • Increase funding at the Department of Transportation to support the continuation of the new Maritime Innovation Center of Excellence and the Port Infrastructure Development Program (PIDP).

    • Develop new policy concepts to build on demonstrating maritime technologies, including fuels and fueling infrastructure.

    • Generate policy concepts to strengthen the Port Infrastructure Development Program to include other onshore infrastructure, fueling infrastructure, and other maritime technologies.

    • Design programs to support maritime innovation and increase the United States’ entrepreneurial ecosystem, including incubators and accelerators through the Department of Energy and the Department of Commerce.

Priority Four

Help Ports Bunker and Distribute Fuels of the Future

  • To implement innovative maritime technology effectively, ports require more understanding of maritime fuel production and consumption. 

  • Conduct ongoing analysis to understand the volumes, prices, and port infrastructure required to adapt to fuels of the future. 

  • Volumes

    • Refine the estimated volumetric consumption of fuels at U.S. ports (HFO, LNG).

    • Estimated future volumetric needs of fuels of the future (methanol, ammonia, RNG).

    Price

    • Forecast fuel production based on the current tax environment (45V, 45Q) for fuels of the future.

    Carbon Intensity

    • Calculate CII estimations for different fuel pathways in order to align United States production requirements with international standards developed by IMO, which will drive market demand in the coming decades.

    Port Infrastructure

    • Assess the readiness of ports to bunker fuels of the future.

    • Estimate the cost of port fuel bunkering.

    • Estimate electricity load growth to electrify ports and port equipment.