• Energy Research

One of the consequences of the conflict in Ukraine relates to the growing shortfall in global ammonia production. There are additional negative global impacts on the availability of fertilizers and prices of ammonia (NH3). The shortage in ammonia production does not only influence the agroindustry but also the global shipping industry, as ammonia is positioned as a promising zero-carbon fuel and as a storage and transport medium for hydrogen. There are plans underway to start ammonia production in Estonia to minimize the consequences of the import stop of Russian ammonia in the context of the Ukrainian crisis. This study investigated the Baltic Sea Region (BSR) ammonia market and analyzed the economic implications of building an ammonia plant within the BSR. Using fuzzy real options models as the conceptual framework, together with secondary data analysis, case studies and expert interviews, the authors chart possible courses for the construction of ammonia production facilities within the region. Based on the case of the NH3 production plant, as well as the underlying distribution system, the study provides new economic perspectives for lower carbonization for the shipping industry, an attempt at creating a model for other European regions toward climate change mitigation.

The study calculates the costs of the environmental impact of cruise shipping to determine how and to what extent the cruise industry has evolved towards clean shipping in the Baltic Sea Region. While environmental regulations connect directly to emissions reduction, measures to ensure a clean shipping industry are beyond regulatory measures. The sector should be able to fully operate within an environmentally, socially, and financially acceptable structure. A holistic shipping pollution and emissions index, for example, must also include financial or economic quantification of the major environmental impacts. Thus, using empirical data collated from the industry, uncontrolled observations, and experts’ interviews, we present the annual CO2 emissions and the related emissions costs of a typical 7-day cruise that operates within the Baltic Sea region (BSR) as well as a waste management report from the port of Saint Petersburg. The result is a detailed energy demand and cost inventory assessment of cruise trips and their overall impact on the clean shipping campaign of the maritime industry. The focus on a BSR cruise and a port city led to realistic and reliable results since the Baltic Sea represents a well-defined macroregion with clear ports and cruising structures suitable for cross-sectoral activities.

AbstractThe maritime industry is getting much attention owing to the current energy and climate crises. There are increasing discussions on sustainable maritime transport across the globe especially after the successful implementation of the sulphur regulations in the Baltic Sea Region (BSR). The world is now getting ready for the 2020 global sulphur cap suggesting that the energy transition outlook in the maritime sector is becoming clearer and there is no going back.Still, global energy consumption is growing at an alarming rate, and all hands must remain on deck to avert possible world crises. There are still questions related to clean shipping, waste management, clean fuel, decarbonisation of fuel and greenhouse associated with global warming. What are the expected hurdles of a complete transition to a complete clean maritime transport industry? Can the world achieve total integration of this policy to contribute to environmental protection?The study investigates the effect of both public and private cost of environmental governance in the maritime sector and evaluates the budding orchestration of green/clean shipping initiatives to activate regulatory policies using the Sulphur Emission Control Area (SECA) regulation in the Baltic state region, its state of the art, coordination and cost. The study further addresses the gaps in the present and future development of regulation compliance focussing on their design, monitoring and control to meet the global outlook for the 2020 global sulphur cap.