World Shipping Council research shows price gap between fossil and renewable fuels major hurdle

In Belgium, the World Shipping Council (WSC) released new research that shows both renewable-capable vessels and renewable fuels could be available to meet EU 2030 targets, but that the price gap between fossil and renewable fuels is the major barrier to making decarbonization a reality.

The first “WSC EU Shipping Decarbonisation Report – Can the EU Fuel Shipping’s Decarbonisation?” – launched at the European Shipping Summit 2025 in Brussels, provides a comprehensive analysis of shipping’s transition to renewable fuels in the EU. The report finds that while the number of renewable-fuel capable vessels is increasing and fuel availability is improving, pricing remains the primary obstacle to scaled production and widespread adoption. 

Key findings: 

·      Projected Fuel Demand by 2030: Global vessels on order will require 14.4 million tonnes oil equivalent (Mtoe) of methane, 7 Mtoe of methanol, and 0.7 Mtoe of ammonia. 

·      EU Renewable Fuel Production: While EU production of renewable fuels is growing, it remains unclear how much will be allocated to marine use. 

·      Renewable Fuel Supply Potential: Optimistic projections suggest adequate supply to meet the FuelEU decarbonisation targets by 2030, but commercial viability hinges on regulation that narrows the cost gap between fossil and renewable fuels. 

Cost Barrier: 

·      Bio-methane: 169% more expensive than fossil LNG. 

·      Bio-methanol: 469% more expensive than Very Low Sulphur Fuel Oil (VLSFO). 

·      E-methane: 560% more expensive than VLSFO. 

·      E-methanol: 626% more expensive than VLSFO.