The German government has approved the use of HVO100 biodiesel - all that stands in its way is price. HGK Shipping is calling for help
Inland shipping presents some challenges when thinking about reducing emissions. Its operations are, by definition, more likely to impact populations, as its vessels travel the rivers and canals of some densely populated countries. It is also, in general, a low-margin business, often with ageing vessels.
HGK Shipping, one of the largest inland shipping companies in Europe, is therefore supportive of the German government’s decision to allow the use of HVO100 – a biodiesel made entirely from hydrotreated vegetable oil. This avoids the need to re-equip thousands of vessels with new engines to run on other fuels, such as ammonia or hydrogen, since it can simply replace fossil diesel, using the existing infrastructure.
The main issue with switching from fossil diesel to HVO is the cost differential and one thing HGK Shipping is calling for is more subsidies in the near term, until market mechanisms have had time to bring prices closer to parity. Shipowners are eager to do their bit to reduce emissions and this straightforward suggestion could deliver an inland fleet that is almost climate-neutral as soon as 2030.
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Steffen Bauer, CEO of HGK Shipping, has this to say about the introduction of HVO100 across Germany: “The go-ahead provided by the government in Berlin for its use is an important incentive for mobility in Germany – and this also applies to inland waterway shipping, which is very climate-friendly anyway. That’s why we’re going to use HVO100 straight away.
“This fuel could already significantly minimise CO2 emissions in comparison with traditional fossil fuels and represent a viable transitional measure during a phase when emission-free drive technologies are still in the development stage,” Bauer continues. “In light of the costly research expenditure for innovative types of engines and the economically unrealistic scenario of quickly and extensively equipping older existing fleets with new ship engines, resource-efficient transport logistics will already become a reality now thanks to HVO100.”
“We’re asking politicians to consider introducing a sector solution and creating the relevant incentives for this biogenic fuel to be used across the board within inland waterway shipping,” Bauer says. “Short-term tax relief, which would be necessary for as long as it takes for the price of HVO to match the costs of diesel fuel, would significantly promote the use of this interim solution. Alongside this, subsidies for research and development work in the field of fuel cell technology should be made available on a long-term and targeted basis. This would create the conditions for modernising fleets, which are already 55 years old on average, from sustainability points of view too. Inland waterway shipping could then grow with planning certainty and be assured of a good future; it could support this important mode of transport to be able to significantly reduce its CO2 emissions during the next few years to benefit the planned energy revolution.”
HGK Shipping has already purchased quotas of the biofuel to be able to exclusively operate parts of its fleet with HVO100 in future. No technical modification is necessary to use the fuel, even for fairly old drive systems. This therefore opens the possibility for the sector to make further use of older shipping fleets without any significant investments and still make an important contribution to decarbonising European inland waterway shipping by achieving savings of up to 90 percent in its CO2 emissions.
