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1、Evolution of transport fuelsThe role of alternative fuels on the path to InternationalKPMG.Make the Difference.IntroductionThe global transport sector is at a critical crossroads,responsible for approximately 15 percent of global greenhouse gas(GHG)emissions.1 Over 91 percent of its energy needs are
2、 still met by traditional fuels such as gasoline and diesel,2 highlighting the urgent need for a transformative shift to alternative fuels.Consider these eye-opening transportation sector facts:Since the early 1970s,the transport sectors dependence on conventional fuels has decreased by only 3.5 per
3、cent.3Freight transportation demand is projected to nearly double by 2050 compared to 2023 levels.4California plans to ban new diesel heavy-duty trucks by 2036,mandating all heavy trucks be zero-emission by 2042.5The International Energy Agency(IEA)projects transport-related CO2 emissions to increas
4、e until 2030,underscoring the urgent need for drastic emission reductions.6 Commercial and public transportation leaders are facing a complex but critical challenge:the transition of their fleets to alternative fuel sources.Despite the considerable advancements in transitioning the light-duty sector
5、,specifically through the electrification of passenger cars,there are still formidable hurdles to be addressed in decarbonizing aviation,maritime and heavy-duty road transport,encompassing long-haul trucking and inter-city buses.This report is specifically designed for transportation industry leader
6、s and stakeholders,providing them with actionable insights on alternative fuels and a detailed analysis of readiness and adoption potential across road transport,aviation,and maritime shipping.It identifies the key challenges to adoption,assesses the readiness of various alternative fuels,and outlin
7、es sector-specific solutions.This report aims to guide industry leaders in making informed decisions to accelerate the transition to alternative fuels,thereby reducing greenhouse gas emissions and achieving net zero targets.1 EDGAR Emissions Database for Global Atmospheric Research,“CO2 emissions of
8、 all world countries”(2022).2 International Energy Agency(IEA)website,“Transport”(16 May 2024).3 EDGAR Emissions Database for Global Atmospheric Research,“CO2 emissions of all world countries”(2022).4 International Transportation Forum,“ITF Transport Outlook 2023”(May 2023).5 State of California“Cal
9、ifornia approves groundbreaking regulation that accelerates the deployment of heavy-duty ZEVs to protect public health”(April 28,2023).6 International Energy Agency(IEA),Global CO2 emissions from transport by subsector,2000-2030(November 4,2021).2020Two-and three-wheelersGlobal greenhouse gasGlobal
10、transport sectorLight duty vehiclesBus and minibusRailHeavy truckShippingAviation85%15%Source:EDGAR Emissions Database for Global Atmospheric Research,“CO2 emissions of all world countries”(2022).International Energy Agency(IEA),“Global CO2 emissions from transport by subsector,2000-2030”(November 4
11、,2021).2|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article07Article08Article09Article10ArticleSector-specific key fi
12、ndingsSectorAdoption readinessChallengesOpportunitiesRoad transportHigh readiness:Natural gas,LPG,and biofuels(first-generation HVO and renewable diesel)Emerging alternatives:Methanol and Dimethyl Ether(DME)High production costs Limited infrastructure Regulatory uncertainties E-fuels(renewable pathw
13、ays)face readiness and cost challenges Immediate emission reductions with biofuels and natural gas Competitive edge and preparation for stricter regulationsAviationPromising:Sustainable Aviation Fuel(SAF)and E-fuels(renewable pathways)High costs and scalability issues Supply chain and feedstock sust
14、ainability concerns Regulatory readiness for E-fuels(renewable pathways)Position airlines as sustainability leaders Meet regulatory demands through investment and collaborationMaritime shippingHigh readiness:Natural gas(CNG and LNG)Promising alternatives:Methanol and ammonia High initial investment
15、costs Infrastructure modifications needed Safety concerns Significant emission reductions and operational cost savings Leverage regulatory incentives for early adoptersWithout timely action,organizations risk facing stranded assets,increased regulatory penalties,and diminished market competitiveness
16、.Conversely,early adopters can capitalize on substantial benefits,including enhanced sustainability profiles,access to government incentives,and a stronger market position.By leveraging the insights and recommendations presented,transport leaders can enhance their strategic planning,mitigate risks a
17、ssociated with regulatory changes,and capitalize on emerging market opportunities in the energy transition.Explore the findings and strategic guidance in this report to position your organization at the forefront of the alternative fuels revolution.Conversely,early adopters can capitalize on substan
18、tial benefits,including enhanced sustainability profiles,access to government incentives,and a stronger market position.3|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved
19、.01Article02Article03Article04Article05Article06Article07Article08Article09Article10ArticleAbout the lead authorsChris BrownPartner,Strategy KPMG in IrelandAnish DeGlobal Head of Energy,Natural Resources and Chemicals KPMG InternationalChris is a Partner leading the KPMG Global Strategy Group in Ire
20、land.He has over 18 years of professional experience spanning organic strategy,new market entry and M&A commercial due diligence.Leading a wider team across several sectors,Chriss personal focus sectors are the aviation and data center value chains.He has worked with airlines,ground handlers,airport
21、s,air navigation service providers,SAF producers,lessors and the aerospace supply chain.He has led global mandates on the viability of SAF ramp up to the ability of alternative propulsion technologies to disrupt regional aviation.He previously spent three years in the UK and seven years in China wit
22、h the KPMG Global Strategy Group.Anish De is the Global Head for Energy,Natural Resources and Chemicals(ENRC)at KPMG International.He is recognized for his deep knowledge in areas such as corporate strategy,policy and regulation,and energy markets.He regularly contributes to various business and tra
23、de publications on topics like energy transition and climate mitigation.Anish is passionate about creating solid institutions and communities.Anish founded the KPMG in India Decarbonization Hub and is a crucial member of KPMGs Global Climate Change and Decarbonization Center.4|Evolution of transport
24、 fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article07Article08Article09Article10ArticleAnvesha ThakkerGlobal Co-Lead Climate Change&Decarbon
25、ization,KPMG International and Partner and Lead,Renewable Energy KPMG in IndiaMonique GieseGlobal Head of Shipping KPMG in GermanyBarry Edmonstone-WestPartner,Deal Advisory,The Strategy Group KPMG in the UKAnvesha Thakker is a prominent figure in energy transition,working closely with KPMGs Global D
26、ecarbonization Hub.She is also a Partner and National Lead in Clean Energy with KPMG in India.Anveshas expertise lies in strategy and operations matters within the new energies space.In her role as an energy transition lead,Anvesha has been actively involved in the field of low-carbon fuels across v
27、arious sectors,including transportation.She works closely with International Financial Institutions(IFIs),government bodies,and the private sector.She has evaluated technologies such as electric and hydrogen-fueled vehicles,focusing on aspects like cost modeling and feasibility.Additionally,she has
28、assessed the imperatives for their uptake,potential risks,and other related factors.Monique Giese is heading KPMGs global shipping network.She joined KPMG in 2006 and has specific experience in the global shipping and transportation industry,having worked in Corporate&International Tax Consulting se
29、rvices across maritime,shipping,and logistics.In her role,she also supports strategy projects of global clients for digitalization,decarbonization and business expansion.Monique also represents KPMG at industry-specific conferences as a speaker on the challenges of the industry and creates thought l
30、eadership for the industry.Barry is a Partner in the Deal Advisory practice at KPMG in the UK,specializing in energy and natural resources.His technological expertise includes the battery supply chain,renewable fuels,and hydrogen fuel cells.He holds a degree in chemical engineering and a PhD,and has
31、 worked on producing alternative fuels.In a previous role at a large multinational company specializing in chemicals and sustainable technologies,he held the responsibility for Group Strategy across various sectors.These sectors included road transportation,aviation,and marine,where he focused on se
32、veral significant projects related to catalyst technologies and emissions control.Since returning to consulting,Barry has maintained a key focus on alternative fuels,underscoring his dedication to promoting sustainable energy solutions.5|Evolution of transport fuels 2024 Copyright owned by one or mo
33、re of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article07Article08Article09Article10ArticleContentsRoad transport,aviation and maritime solutions 1604ArticleOvercoming adoption hurdles
34、 of alternative fuels 1202ArticleResearch methodology 3407ArticleKPMG firms role in the energy transition 3909ArticleNavigating the landscape of alternative fuels 0901ArticleConclusion 3206ArticleEvaluating alternative fuel options 1403ArticleSources 3708ArticleKPMG industry analyst recognitions 411
35、0ArticleStrategizing the transition to alternative fuels 2805Article6|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Alternative fuels:Fuels other than traditional petr
36、oleum-based fuels(such as gasoline and diesel)that are used to power transportation vehicles.Examples include biofuels,hydrogen,natural gas,and synthetic fuels.Biofuels:Fuels derived from biomass,such as plant materials or animal waste.Common types include ethanol,biodiesel,and renewable diesel.Blen
37、ding:The process of mixing biofuels with conventional fuels to create a fuel that can be used in existing engines.Carbon capture and storage(CCS):Technology used to capture and store carbon dioxide emissions from industrial processes,preventing CO2 from entering the atmosphere.Compressed natural gas
38、(CNG):Natural gas that is compressed to less than 1 percent of its volume at standard atmospheric pressure,used as an alternative fuel for vehicles.Carbon dioxide(CO2):A colorless,odorless gas produced by burning carbon and organic compounds and by respiration,commonly associated with greenhouse gas
39、 emissions.Dimethyl ether(DME):A clean-burning alternative fuel made from methanol,used as a substitute for diesel in transportation and as a propellant in aerosols.Decarbonization:The process of reducing carbon dioxide emissions using low-carbon power sources,increased energy efficiency,and changin
40、g industrial processes.E-fuels:Synthetic fuels produced from renewable electricity.Examples include e-methanol and e-diesel.Electrolysis:A process that uses electricity to split water into hydrogen and oxygen,commonly used in the production of green hydrogen.Environmental,social,and governance(ESG):
41、A set of criteria used to evaluate a companys operations and performance on sustainability and ethical impacts.European Union Emissions Trading Scheme(ETS):A market-based approach used by the EU to control and reduce industrial greenhouse gas emissions through the trading of emission allowances.Feed
42、stock:Raw materials used to produce biofuels and other alternative fuels.Green hydrogen:Hydrogen produced using renewable energy sources,such as wind or solar power,through the process of electrolysis.Greenhouse gas(GHG):Gases that trap heat in the atmosphere,contributing to the greenhouse effect an
43、d global warming,including CO2,methane,and nitrous oxide.Hybrid electric vehicles(HEV):Vehicles powered by both an internal combustion engine and an electric motor.International Energy Agency(IEA):An autonomous organization that works to ensure reliable,affordable,and clean energy for its member cou
44、ntries and beyond.International Maritime Organization(IMO):A specialized agency of the United Nations responsible for regulating shipping and ensuring maritime safety and environmental protection.Lifecycle analysis(LCA):An analysis method used to assess the environmental impacts associated with all
45、stages of a products life.Lifecycle emissions:Total greenhouse gas emissions produced throughout the entire lifecycle of a product,from raw material extraction through manufacturing,use,and disposal.Liquefied Petroleum Gas(LPG):A type of hydrocarbon gas that is stored under pressure to keep it in a
46、liquid state.Propane is a type of LPG that is used widely due to its portability and high energy efficiency.Liquefied natural gas(LNG):Natural gas that has been cooled to a liquid state for storage and transport,used as a cleaner alternative fuel for shipping and heavy-duty vehicles.Low-carbon ammon
47、ia:A type of ammonia that is produced using renewable energy sources instead of fossil fuels.Maritime and Coastguard Agency(MCA):A UK government agency responsible for maritime safety,regulation,and environmental protection of the seas around the United Kingdom.Methanol(CH3OH):A simple alcohol used
48、as an alternative fuel,which can be produced from natural gas,biomass,or renewable sources.Glossary7|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03
49、Article04Article05Article06Article07Article08Article09Article10ArticleNatural gas:A type of fossil fuel primarily composed of methane(CH4)that is extracted from underground reservoirs.Net zero:Achieving a balance between the amount of greenhouse gas emissions produced and the amount removed from the
50、 atmosphere.Power-to-liquid(PtL):A process that converts renewable electricity into liquid synthetic fuels,such as e-methanol or e-diesel,for use in transportation and industry.Reduced carbon service(RCS):A service model that allows organizations to reduce transportation-related greenhouse gas emiss
51、ions by using alternative fuels and attributing the resulting emission reductions to their customers.Renewable diesel:A type of biofuel produced from renewable sources that can be used as a drop-in replacement for petroleum diesel.Renewable energy directive(RED):European Union policy aimed at promot
52、ing the use of renewable energy sources and reducing greenhouse gas emissions.Sustainable aviation fuel(SAF):Alternative fuels used in aviation that have a lower carbon footprint compared to conventional jet fuel.Technology readiness level(TRL):A scale used to measure the maturity of a technology,fr
53、om concept(TRL 1)to fully operational(TRL 5).Total cost of ownership(TCO):The total cost of acquiring,operating,and maintaining an asset over its entire lifecycle.Well-to-wake(WTW):An assessment method that considers the full lifecycle emissions of a fuel,from production(well)to use(wake),typically
54、used for maritime and aviation sectors.Well-to-wheel(WTW):An assessment method that considers the full lifecycle emissions of a fuel,from production(well)to use(wheel),typically used for road transport.Zero-emission vehicles(ZEV):Vehicles that do not emit exhaust gases or other pollutants from the o
55、nboard source of power.8|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article07Article08Article09Article10ArticleNaviga
56、ting the landscape of alternative fuels019|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.02Article03Article04Article05Article06Article07Article08Article09Article10Arti
57、cle01ArticleThe history of alternative fuels can be traced back to the oil crisis in the 1970s,when the world experienced a significant increase in oil prices due to geopolitical tensions in the Middle East.7 This event led to the realization of the vulnerability of relying solely on traditional fos
58、sil fuels for energy and countries like Brazil began large-scale ethanol production from sugarcane.8 As a result,there was a growing interest in developing alternative energy sources such as biofuels,hydrogen,and electric vehicles.Today,transportation organizations are currently facing significant c
59、hallenges in adopting alternative fuels.Despite their low-carbon advantages,these fuels have variable adoption-readiness levels,limited associated infrastructure,costs higher than traditional fossil fuels,and regulatory and market uncertainty.In some cases,adoption is a matter of two steps forward,o
60、ne step back.Overall,this means the economics of these alternative fuels are still poorly understood and characterized.Chart 1:Global CO2 emissions from transport by subsector,2000-2030Two-and three-wheelersLight duty vehiclesBus and minibusRailHeavy truckShippingAviation00400050006000700
61、0800090002000201020202030 APS2030 NZEMtCO2Notes:APS=Announced Pledges Scenario.NZE=Net zero emissions by 2050 scenario.Trucks include road freight vehicles with a gross vehicle weight of more than 3.5 tonnes.Source:International Energy Agency(IEA),“Global CO2 emissions from transport by subsector,20
62、00-2030”(November 4,2021).7 The Victorian Eco-Innovation Lab(VEIL),“An Overview of Distributed Energy in the EU and USA:Business Intelligence and Policy Instruments.”McCormick,K.(2008).8 International Energy Agency(IEA),“Brazils ethanol production programme”(August 2023).Global partnerships are impo
63、rtant for the commercial and public transportation sectors.The intention to develop green freight corridors which bring together maritime,aviation and trucking solutions to develop more sustainable transport are now crucial to meet net zero.”Monique GieseGlobal Head of ShippingKPMG in Germany10|Evol
64、ution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article07Article08Article09Article10Article01ArticleNot surprisingly,many orga
65、nizations are taking a wait and see approach,hoping to gauge which fuels and technologies will emerge as the most cost-effective.In the meantime,they are trying to reduce fuel consumption and emissions while testing alternatives on a smaller scale.Assets in the trucking,shipping and aviation industr
66、ies often have long economic lifespans,sometimes exceeding 20 years.Therefore,a complete transition to a new fuel and/or engine type can raise concerns about the high replacement costs of prematurely phasing out otherwise economically valuable assets and about making the wrong choice.However,the ris
67、ks of not adopting an alternative fuels strategy are equally significant.Without the increased adoption of alternative fuels,organizations should be prepared for stranded assets and reduced profits or cash flow at a later stage.A failure to fully understand rapidly evolving technology,combined with
68、stricter fossil fuel regulations,carries the risk of making the operation of assets and infrastructure redundant or even prohibited in some markets.Regulations such as the EU Emissions Trading Scheme(ETS)and the FuelEU Maritime Initiative(FEUM)are expected to more than double the cost of using fossi
69、l fuels in maritime shipping by 2030.The positive news is that many transitional and alternative fuel options are available from existing natural gas and liquid petroleum gas(LPG),through biofuels(ethanol,bio-methane and biodiesel),alternative low-carbon small molecules(hydrogen,ammonia,dimethyl eth
70、er(DME)and methanol)and into the synthetic fuel space(power-to-liquid/e-fuels).Many alternative fuels already demonstrate positive characteristics.9 Natural gas and LPG are already in use at scale along with some biofuels like bioethanol and biodiesel.Some of the small molecules and advanced biofuel
71、s such as renewable diesel and sustainable aviation fuel or SAF offer a drop-in potential for the medium term.In the longer term,legislation and a full focus on decarbonization/net zero goals will be required for the market to support the mass production and use of synthetic fuels.109 Wrtsil website
72、,“Sustainable shipping fuels can reach cost parity with fossil fuels by 2035 with decisive policy,says new Wrtsil report”(March 21,2024).10 World Shipping Council,“Delivering Net Zero by 2050 with the Green Balance Mechanism”(23 January 2024).When considered from an end-use perspective,some of the a
73、lternative fuels can already demonstrate their importance in the push to reduce emissions.These include biofuels in road transport and SAF for aviation,which will be the most likely short-to medium-term solution for that sector.Maritime shipping will probably turn to biofuels and liquid natural gas(
74、LNG).Other solutions will need more development,reduced costs,or stricter legislation to support their adoption.This is especially true for international maritime.11|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provid
75、e no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article07Article08Article09Article10Article01ArticleOvercoming adoption hurdles of alternative fuels0212|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPM
76、G International entities provide no services to clients.All rights reserved.01Article03Article04Article05Article06Article07Article08Article09Article10Article02ArticleWhile alternative fuels are all expected to play a significant role in the future of commercial and public transportation,they also pr
77、esent several challenges to adoption,many of which cannot easily be resolved.These include:Adoption readiness Technology availability,adoption rates and preferred production pathways remain unclear.Even where progress is being made,it is uneven.As new fuels are introduced,organizations should think
78、about which new technologies are adopted and how they can be integrated with existing activities with a minimum of disruption.Training workers,sourcing components/raw materials and developing systems all add to this challenge.This also requires some standardization and coordinated action along the v
79、alue chain.Many of these issues have not yet been fully resolved,hampering the availability of some alternative fuels.Infrastructure The infrastructure required to support the production,distribution and supply of alternative fuels can be a concern.This applies to some fuels more than others.Natural
80、 gas and aviation fuel infrastructure could easily be repurposed for low-carbon alternatives,while other fuels such as methanol and DME would require repurposing of equipment and modifications to pumps,seals,and gaskets;others such as ammonia and hydrogen would require new supply chains and equipmen
81、t to be built from scratch.Organizations need a holistic view of infrastructure,including their role in building out and supporting a viable end-to-end supply chain.Tax credits and grants can help and are something that should be considered as part of the development and deployment of any technology
82、.Cost-effectiveness Alternative fuels generally have higher costs compared to traditional fossil-derived options,impacting profit margins and overall business viability.While most of these fuels offer lower operational costs through technical efficiencies that can be realized over time,many carry hi
83、gh upfront costs.11 SAF,for example,is currently more than double the price of regular jet fuel.International Air Transport Association(IATA)data shows that SAF use added US$756 million to a record high fuel bill in 2023 with the average SAF price around US$2,400/tonne two and a half times higher th
84、an the price of conventional jet fuel(US$1,094/tonne).12Regulatory and market uncertainty Most alternative fuels have some regulatory support,but there are gaps in regulations,especially for less mature fuels like methanol,ammonia and synthetic fuels(PtL production pathways).Given current infrastruc
85、ture and economic challenges,regulatory incentives are required to support organizations to invest in and adopt these fuels in the same way that the passenger car market has incentivized consumers to switch from internal combustion engines(ICEs)to electric vehicles(EVs).Technical operating parameter
86、s and methods also need to be standardized and adopted by countries and OEMs to enable manufacture at scale and its deployment.With uncertainty around which technologies and pathways will be supported and to what degree,the regulatory environment is an area that should be carefully considered before
87、 investing.11 Wall Street Journal Sustainable Business,“Sustainable Aviation Fuel Leader Talks Green Premiums and Impact of Tax Incentives”(July 19,2023).12 International Air Transport Association(IATA),“SAF Volumes Growing but Still Missing Opportunities”(December 6,2023).13|Evolution of transport
88、fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article07Article08Article09Article10Article02ArticleEvaluating alternative fuel options0314|Evolu
89、tion of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article04Article05Article06Article07Article08Article09Article10Article03ArticleUnderstanding the readiness of each
90、alternative fuel should help organizations make appropriate choices on their way to decarbonization.These fuels can enable reductions in emissions and give them time to build out infrastructure and adapt to market conditions for future sustainable fuels(chart 2).Source:KPMG analysis,“Fueling the ene
91、rgy transition,”2024Each fuel is scored on promise in reducing carbon emissions and readiness for wider adoption(low:1.0,low to medium:2.0,medium:3.0,medium to high:4.0,high:5.0)Chart 2:Alternative fuels readiness factors-Overall 0.01.02.03.04.05.0EnvironmentalperformanceCost effectivenessEnergy den
92、sityOperationalreliabilityMarket readinessTechnologymaturityInfrastructurecompatibilityRegulatoryreadinessLow-carbon ammoniaBiofuelsDimethyl EtherMethanolNatural gas(LNG and CNG)Bio-SAFE-fuels(renewable pathways)LPG(Propane)In the short term,this leaves us with the following perspectives on each alt
93、ernative fuels market readiness and adoption potential:Source:KPMG analysis,“Fueling the energy transition,”2024 Over the medium to longer term,perspectives and conditions for these fuels may change,and we should consider how they are used in practice.FuelLowMediumHighNatural gasLPGBiofuels(first ge
94、neration)Renewable diesel/Bio-SAFMethanolAmmoniaHydrogenE-fuels(renewable pathways)DME15|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Art
95、icle05Article06Article07Article08Article09Article10Article03ArticleRoad transport,aviation and maritime solutions0416|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01A
96、rticle02Article03Article05Article06Article07Article08Article09Article10Article04Articlegeneration HVO and renewable diesel)and natural gas are showing a relatively good state of readiness,and methanol is making progress.DME is also emerging as a strong alternative to diesel,due to the ability to use
97、 existing LPG infrastructure.However,the production readiness and costs around e-fuels(renewable pathways)remain a challenge(chart 3).For any transportation organization contemplating their future fuels options,the landscape they are playing into is a critical component that will likely determine wh
98、ich fuel options are acceptable and adopted over time.In the following section we will consider each end-use,the technological outlook,and how this favors some alternative fuel options over others according to different timescales.13 International Energy Agency(IEA),“World Energy Outlook 2023”(Octob
99、er 2023).14 International Transport Forum,“Is Low-Carbon Road Freight Possible?”(December 8,2018).Chart 3:Road transport alternative fuels readiness 0.01.02.03.04.05.0EnvironmentalperformanceCosteffectivenessEnergydensityOperationalreliabilityMarket readinessTechnologymaturityInfrastructurecompatibi
100、lityRegulatoryreadinessDieselBiofuelsDimethyl EtherMethanolNatural gas(LNG and CNG)E-fuels(renewable pathways)including E-SAFHydrogenElectricPropaneSource:KPMG analysis,“Fueling the energy transition,”2024Each fuel is scored on promise in reducing carbon emissions and readiness for wider adoption(lo
101、w:1.0,low to medium:2.0,medium:3.0,medium to high:4.0,high:5.0)Source:International Energy Agency(IEA),World Energy Outlook 2023(October 2023).Road transport accounts for nearlyof global oil demand.45%On-road transport is a complex sector undergoing historic changes.For more than a century,vehicles
102、have been defined by the ICE.Soon,the industry will likely look like a mosaic of solutions,including battery EVs,ICE hybrids,and hydrogen electrics alongside a range of alternative fuels.(Learn more in“Place your billion-dollar bets wisely,Powertrain strategies for the post-ICE automotive industry,”
103、KPMG.)At present,road transport accounts for nearly 45 percent of global oil demand.13 The continued growth of online shopping and home deliveries means that over the last two decades alone,the industry saw an 80 percent increase in the global consumption of diesel due to rising road freight.If logi
104、stics sites are included,the road transit industry is responsible for an 11 percent increase in global CO2 emissions.14 Alternative fuel use in road transit can not only reduce emissions but also increase operational efficiency while lowering operational costs.Many of the fuel options for this indus
105、try such as biofuels(first Heavy duty road transport:Accelerating diversification 17|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article
106、05Article06Article07Article08Article09Article10Article04Article15 US Energy Information Administration(EIA),“In 2023,U.S.renewable diesel production capacity surpassed biodiesel production capacity”(September 2023).16 State of California,“California approves groundbreaking regulation that accelerate
107、s the deployment of heavy-duty ZEVs to protect public health”(April 28,2023).17 Volvo website,“FAQ about electric trucks”,Accessed 15 May 2024.Biofuels(first-generation HVO and renewable diesel)Biofuels are expected to account for 6 percent of road transport by 2030 and offer immediate GHG emission
108、reductions for commercial and public transportation.However,their production is limited by feedstock availability,higher costs,and sustainability criteria,forcing road transit organizations to consider a variety of other alternative fuel options.In 2023,US production capacity of renewable diesel sur
109、passed US biodiesel production capacity for the first time.Rising targets for state and federal renewable fuel programs and the renewal of biomass-based diesel tax credits are driving this growth/switching of renewable diesel capacity.15Natural gasNatural gas,including LNG and compressed natural gas
110、(CNG),serves as a cost-effective transition fuel for road transit,providing immediate emission reductions and high reliability.Despite being a fossil fuel,it has lower carbon emissions than oil,although it does have higher methane emissions.It is a mature technology and readily available with infras
111、tructure that makes it easier to adopt.The growing availability of renewable natural gas(typically made from biomass)further expands its advantages as a transportation fuel for road transit.MethanolMethanol is already widely produced and used globally,with green methanol produced with renewable ener
112、gy sources attracting a growing amount of interest.With its adaptability for engine technologies and lower emissions,methanol can power trucks and public transportation fleets efficiently,despite safety considerations due to its high flammability.DMEDME is emerging as a diesel alternative for commer
113、cial vehicles,offering clean-burning properties and cost-effective production from methanol.Its similarity to LPG enables easy storage,transportation,and possible opportunities to work with existing LPG infrastructure.E-fuels(renewable pathways)E-fuels,like e-methanol which is made from renewable hy
114、drogen and carbon dioxide,offer long-term solutions for public transit and trucks.They offer carbon neutrality and compatibility with existing infrastructure.However,their limited production and high costs pose challenges for widespread adoption.ConsiderationsAs regulations tighten for this sector,a
115、lternative-fuels adoption needs to accelerate.In the near term this means more drop-in replacements(biofuels)or switching to readily available alternatives such as LNG and CNG.Trucks are arguably moving to greener alternatives at a slower pace than long distance,inter-city buses due to longer term u
116、ncertainty about how the powertrain will evolve.In California,for example,trucks represent only 6 percent of the vehicles on the roads but account for over 35 percent of nitrogen oxide emissions and 25 percent of road-related GHG emissions.16Case in Point:TruckingTrucking manufacturers like Volvo ar
117、e investing in various alternative-fuel operated trucks.Volvo offers battery,fuel cell and LNG-powered trucks and is researching DME as a fossil fuel alternative.It estimates that by 2030,50 percent of all Volvo trucks sold in Europe will be electric,using either battery or fuel cell technology.1718
118、|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article07Article08Article09Article10Article04Article18 Government of Cana
119、da,“Canadas Emission Trends 2014:Chapter 2”(June 28,2017).ChallengesGHG emissions from the transportation sector increased by 31 percent in Canada between 1990 and 2005.18 Since then,Canada has introduced a number of policy and regulatory measures to reduce emissions from the sector.Natural Resource
120、s Canadas EV and Alternative Fuel Infrastructure Development Initiative program provides contributions for establishing alternative-fueling stations across Canada.However,the government felt there were several roadblocks to the wider adoption of alternate fuels,including several forms of CNG and LNG
121、.NRCan commissioned a study on strategy and business models for an alternative fueling infrastructure for Canada.The study involved How KPMG in Canada helpedThe KPMG team facilitated and conducted multiple stakeholder engagement meetings,gathered industry insights,researched publicly available data,
122、and leveraged its broad expertise in infrastructure strategy,planning,financing and analysis.KPMG in Canada successfully and cost effectively delivered a detailed report to NRCan on time and in a cost-effective manner.The report was well received and has been used to inform an ongoing policy refresh
123、 in this area.Benefits to the clientKPMG professionals in action:On the road to alternative fueling for CanadaNatural Resources Canada(NRCan)is the department of the government of Canada responsible for natural resources,energy,and related areas.KPMG in Canada was engaged by NRCan to assist with a s
124、tudy on strategy and business models for an alternative fueling infrastructure for road transportation,including refueling stations for natural gas.industry outreach to understand barriers to investments in alternative fueling infrastructure.Also under discussion was the potential development of alt
125、ernative business models,including public private partnerships(PPPs)to enhance the deployment of the required refueling infrastructure.Key challenges for the study included a challenging timeline,diverse and sometimes conflicting stakeholder views,and limited data availability.19|Evolution of transp
126、ort fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article07Article08Article09Article10Article04Article19 IATA,“Net zero 2050:sustainable aviati
127、on fuels”(May 2024).20 KPMG in Ireland,“Sustainable aviation fuel-Ready for lift off?”(November 2022).In the short term,the aviation sector has limited technological options to decarbonize.This is partly due to engine technology and partly due to the safety requirements for any new alternative.For t
128、he bulk of international flying this means that the jet engine will likely remain the main propulsion technology well into the 2050s.Bio-SAFIn the current context,SAF is essentially synonymous with Bio-SAF.This is due to the increasing focus on sustainable aviation fuels(SAFs)that are bio-based(Bio-
129、SAFs),as part of the global effort to reduce carbon emissions in the aviation industry.Bio-SAF has the potential to reduce carbon emissions in the aviation sector by around 65 percent compared to traditional jet fuel depending on the feedstock.19 It provides public health benefits due to its clean-b
130、urning properties,and it can be used in current aircraft tanks.However,the SAF types currently predominant biofuels faces significant availability and scalability challenges,as well as supply chain bottlenecks and questions over the sustainability of feedstocks.20 Our view is that PtL or synthetic f
131、uel,obtained from low-carbon hydrogen and CO2,represents the most scalable product for use long term.Because PtL fuel is significantly more expensive than any other SAF,realizing its potential cannot be achieved without major investment in electrolysis,renewable generation,and carbon capture technol
132、ogy development and deployment.In return,however,it offers a second route to market for increasingly large renewable energy projects,that,in the case of offshore wind,also tend to be lower in the dispatch priority for established electricity grid networks.0.01.02.03.04.05.0EnvironmentalperformanceCo
133、st effectivenessEnergy densityOperationalreliabilityMarket readinessTechnologymaturityInfrastructurecompatibilityRegulatoryreadinessConventional ATFBio-SAFE-SAF(renewable pathways)Source:KPMG analysis,“Fueling the energy transition,”2024Each fuel is scored on promise in reducing carbon emissions and
134、 readiness for wider adoption(low:1.0,low to medium:2.0,medium:3.0,medium to high:4.0,high:5.0)Chart 4:Aviation alternative fuels readinessSAF has the potential to reduce carbon emissions in the aviation sector bycompared to traditional jet fuel.65%Source:IATA,Net zero 2050:sustainable aviation fuel
135、s(May 2024).Aviation:Soaring sustainably 20|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article07Article08Article09Art
136、icle10Article04ArticleSAF is expected to account for only one to two percent of global aviation demand by 2028 due to scalability challenges.21 Global production of SAF remains low,with demand exceeding supply.Its cost remains a concern since it is generally twice as expensive as conventional jet fu
137、el.22 KPMG research suggests that by 2050,65 percent of aviation energy demand will be met by SAF,with the rest covered by carbon offsets.23 This will be due to low SAF supplies and the immaturity and limitations of other fuel technologies such as hydrogen.E-fuels(renewable pathways)Hydrogen generat
138、ed from renewable energy sources can produce e-fuels,offering more pathways to decarbonize.These hydrogen-based synthetic fuels can also be used as a propulsion method where it can power modified gas-turbine engines or be converted into electrical power via fuel cells,thereby creating a highly effic
139、ient,hybrid-electric propulsion system.ConsiderationsSAF,whether bio-SAF or e-fuel(renewable pathways),are not produced through a single,uniform process.Instead,there are multiple pathways,each with its own set of feedstock,economic and regulatory considerations,that can be used to produce these fue
140、ls.This diversity in production methods can impact the cost,availability,and environmental impact of the resulting fuel.With the resurgence of international travel after Covid-19,aviation emissions have climbed back up to almost 80 percent of pre-pandemic levels(nearly 800 Mt CO2),and pressure is gr
141、owing on the aviation 21 International Energy Agency(IEA),“Oil,analysis and forecast to 2028”(June 2023).22 Wall Street Journal Sustainable Business,“Sustainable Aviation Fuel Leader Talks Green Premiums and Impact of Tax Incentives”(July 19,2023).23 KPMG International,“Net Zero Readiness Report”(Se
142、ptember 2023).24 International Energy Agency(IEA),“Oil,analysis and forecast to 2028”(June 2023).25 The Times,“Boeing may be about to bet the company on a new aircraft again”(April 5,2024).26 US Department of Energy website,“Sustainable aviation fuel”,Accessed May 14,2024.industry to decarbonize.Whi
143、le it accounts for only around 2 percent of global energy-related CO2 emissions,the industry has experienced a faster growth rate in GHG emissions in recent decades than with rail,road,or shipping.The IEA expects much of the growth in global oil demand up to 2028 to be driven by the aviation sector,
144、with global demand for jet fuel rising from 7.5 million b/d in 2024 to over 8 million b/d by 2028.24 The cost of developing a new aircraft program is now estimated as somewhere between 30 and 50 billion,and that figure does not include new types of fuels or propulsion systems.Finding economic ways t
145、o transition to net zero cost effectively is now imperative for this sector.25 To mitigate further emissions growth,several measures will be needed,such as the greater use of alternative fuels,enhancements in airframe designs and engine technologies,operational optimizations,and demand-management so
146、lutions.Case in point:Airport fueling26 World Energy began SAF production in 2016 at its Paramount,California,facility.The organization initially supplied fuel to Los Angeles International Airport prior to supplying additional California airports.International producer Neste began supplying SAF to S
147、an Francisco International Airport in 2020 before expanding to other California airports in 2021 and 2022,as well as Aspen/Pitkin County Airport and Telluride Regional Airport,both in Colorado.Montana Renewables LLC began production in partnership with Shell at an existing petroleum production plant
148、 in 2023,supplying fuel to several partner airlines.21|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article07Article08A
149、rticle09Article10Article04ArticleToday,almost 100 percent of fuels used by the global maritime industry are fossil fuels heavy fuel oil(HFO),light fuel oil(LFO),and some marine gas oil(MGO).27 The industry accounts for about 3 percent of global GHG emissions owing to its dependency on carbon-intensi
150、ve bunker fuels and the fact that over 80 percent of the volume of international trade in goods is transported by sea.28 Smaller ships,fishing boats and ferries can electrify or run on blended fuels with batteries.Larger ships(more than 5,000 gross tonnage)have more limited options,and maritime orga
151、nizations need to design their fleets for maximum fuel flexibility and efficiency.Significant progress in electric ferries for passenger and public transport has been made.Solar-powered electric ferries(with rooftop solar)have been proven and established for inland waterways,and riverine transport.A
152、 rapid transition towards electric can help reduce emissions in cities with water-based public transport and leisure tourism.Such vessels also cut down on noise and enable quieter boats in eco-sensitive zones such as maritime sanctuaries that attract birds and fish.Manufacturing large ships requires
153、 huge investments and involves relatively long lifetimes,so replacing them is a major business decision.Many organizations have chosen to retrofit their vessels to reduce emissions by using shaft power limitation systems,scrubbers,or catalytic reduction systems.0.01.02.03.04.05.0Environmentalperform
154、anceCost effectivenessEnergy densityOperationalreliabilityMarket readinessTechnologymaturityInfrastructurecompatibilityRegulatoryreadinessConventional VLSFOLow-carbon ammoniaLow-carbon methanolNatural gas(LNG and CNG)E-fuels(renewablepathways)BiofuelsChart 5:Maritime alternative fuels readinessSourc
155、e:KPMG analysis,“Fueling the energy transition”,2024Each fuel is scored on promise in reducing carbon emissions and readiness for wider adoption(low:1.0,low to medium:2.0,medium:3.0,medium to high:4.0,high:5.0)27 Global Maritime Forum,“The shipping industrys fuel choices on the path to net zero”(Apr
156、il 2023).28 UNCTAD,“Review of Maritime Transport 2021”(2021).Natural gas has the highest state of readiness of all the maritime fuel options.Methanol and ammonia rank second due to their higher cost.E-fuels are not yet in a state of readiness for widespread adoption according to basic measures(chart
157、 5).Maritime:Navigating cleaner waters22|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article07Article08Article09Articl
158、e10Article04ArticleNatural gasWhile not the long-term solution,both LNG and CNG offer transitional benefits by reducing GHG emissions.A switch from heavy fuel oil to LNG could reduce sulfur emissions by 99 percent,nitrogen emissions by 80 percent,and CO2 emissions by as much as 20 percent.29 However
159、,LNG is liquified methane,which has a global warming potential 28 times greater than CO2 and may only marginally reduce the ships overall carbon footprint.30 LNG and CNG retrofits offer benefits in the form of lower cost and ease of use.Over the next few decades,the maritime industry should see subs
160、tantial growth in natural gas consumption.AmmoniaAmmonia has strong potential for maritime transport with emerging technologies in ammonia-fueled engines and fuel cells.The fuel emits no carbon during combustion and does not have to be stored in high-pressure or cryogenic tanks.Green ammonia,despite
161、 challenges such as corrosion and flammability,is suitable for large-scale transportation like shipping,and the industry expects a significant increase in its use by 2050 but it is currently not commercially or technologically ready to be scaled up.Scaling is limited by infrastructure,demand by alte
162、rnate industries(such as fertilizers)and cost challenges.MethanolWhile methanol combustion does release CO2,solutions for almost net zero emissions are under development that use e-methanol produced with bio-energy sources.Methanol is liquid at ambient temperatures and pressures and is easy to store
163、 and handle.Green methanol is gaining popularity as a maritime fuel due to its 29 International Energy Agency(IEA),“World Energy Outlook 2023”(October 2023).30 Maritime Reporter and Engineering News,“Maritime Transport:Fuels,Emissions and Sustainability”(March 2023).31 National Library of Medicine,“
164、Comparing Life-Cycle Emissions of Biofuels for Marine Applications:Hydrothermal Liquefaction of Wet Wastes,Pyrolysis of Wood,FischerTropsch Synthesis of Landfill Gas,and Solvolysis of Wood”(August 17,2023).32 International Maritime Organization(IMO),“2023 IMO Strategy on Reduction of GHG Emissions f
165、rom Ships”,Accessed May 14,2024.established production and lower initial investment costs compared to LNG.Despite being toxic and flammable with a low flashpoint,methanol requires simpler safety precautions compared to natural gas.Its suitability as a maritime fuel has seen more ports offering metha
166、nol bunkering over the past few years.BiofuelsMarine biofuels are generated from agricultural crops,vegetable oil or food waste.Their lifecycle GHG emissions range from 60 to 56 gCO2e MJ1,representing a 41 percent to 163 percent reduction compared with conventional low-sulfur fuel.31 One of the majo
167、r advantages of biofuels for the maritime sector is the availability of compatible engines.Vessels typically require no modification to use biofuels,making them a“drop in”replacement for conventional marine fuels.E-fuels(renewable pathways)Synthetic fuels are being considered such as e-methanol and
168、e-diesel produced from surplus renewable electricity and CO2 capture.These fuels remain costly,and where engines are not bound by regulations requiring specific fuels,organizations have more incentives to switch to alternative fuels that are simpler or cheaper to produce.ConsiderationsNew fuels path
169、ways are still very uncertain in this sector,with organizations having to explore a variety of options.Where regulators cannot mandate specific fuels,they are tightening regulations to ensure lower emissions.Governments and Port Authorities are making provisions to provide different fuels to cater t
170、o different engines and vessel types.However,given ships move around the world and do not have hubs(as conventionally prevalent with airlines and railways),bunkers have to be made available across the world.In this regard,regional cooperation and development of green corridors that offer alternative
171、 fuels are necessary to facilitate shipping companies in their transition.In 2020 the International Maritime Organization(IMO)introduced new sulfur fuel regulations for global shipping and has since brought in more regulations that mandate 40 percent reductions by 2030 and 70 percent by 2050 compare
172、d to 2008 levels.32 The IMO brought about regulations thatby 2050(compared to 2008 levels).andCO2 by 2030mandate40%70%Source:IMO,“2023 IMO Strategy on Reduction of GHG Emissions from Ships”(July 7,2023)23|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International enti
173、ties.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article07Article08Article09Article10Article04ArticleCase in point:Maritime shipping in Europe Major European maritime shipping organizations are developing long-term fue
174、l strategies based on an increase in fuel flexibility.Denmark-based Maersk has 24 container vessels on order equipped with dual-fuel engines capable of using fuel oil and green methanol.It has also committed to the principle of only ordering newbuilt vessels that can sail on green fuels.33 Similarly
175、,Swiss-headquartered MSC is incorporating biofuels in blended fuels and exploring hydrogen usage.Germany-based Hapag-Lloyd is collaborating with Shell to develop biomethane and liquefied e-methane,while Yara Clean Ammonia,along with North Sea Container Line and Yara International,is pioneering the w
176、orlds first container ship fueled by clean ammonia.34 Shipping organizations are also exploring other,more innovative alternative fuels.Over the past few years,Unifeeder,a Danish shipping company,has participated in the worlds first maritime trial of Synthetic Natural Gas(SNG)The SNG fuel is a synth
177、etic form of LNG that is carbon-neutral and generated entirely from renewable energy.Using a blend of 20 tons SNG and 20 tons conventional LNG,the“ElbBlue”is now saving about 56 tons of carbon output on its voyages compared to using LNG.35 In 2022 at COP27,Norway joined the US as co-leaders in the G
178、reen Shipping Challenge to encourage countries,ports,companies,and other actors in the shipping value chain to reduce emissions from shipping 50 percent by 2030,compared to the 2005 level.This goal will require 700 low-emission and 400 zero-emission ships in Norway alone.36 33 Maersk website,“Maersk
179、 to deploy first large methanol-enabled vessel on Asia Europe trade lane”(December 13,2024).34 Yara website,“The worlds first clean ammonia-powered container ship”(November 30,2023).35 Unifeeder website,“Zero CO2 emissions with renewable SNG”,(September 29,2021).36 Green ship of the future website,“
180、Green Shipping Challenge:Catalyzing the transition to green shipping”,Accessed May 14,2024.24|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article
181、04Article05Article06Article07Article08Article09Article10Article04ArticleHow KPMG in the Netherlands helpedKPMG professionals assisted in developing the RCS solution to encourage the large-scale use of biofuels in the clients maritime operations.KPMG in the Netherlands worked with the client to help:
182、Map different options for enabling biofuel-driven,carbon removals across the value chain and develop new design principles for the system.Determine the most applicable methodologies for estimating CO2 emissions reductions and tailor a suitable methodology that could be adapted to the clients case.Id
183、entify data needs based on the type of source data and emission factors included in the measurement,reporting,and verification(MRV)system of the CO2 emissions-reduction bank.Determine the relevant key performance indicators(KPIs)to be monitored and reported within the MRV framework.Develop and desig
184、n an MRV procedure to ensure data collection and handling in line with the independent verifiers standards.Support the client in the MRV system implementation for RCS and emission-reduction bank.The RCS solution enabled the client to:Develop a service that facilitates the allocation of emission redu
185、ctions generated from biofuel combustion to other value chain participants,specifically their customers.Offer this service at a biofuel premium where customers invest in the purchase of biofuel services in exchange for verified GHG reductions.This enables the client to reduce Scope 1 emissions,while
186、 simultaneously enabling its customers to reduce their Keep on one line.Benefits to the clientKPMG professionals in action:Promoting biofuels for a maritime shipping company and its customersKPMG in the Netherlands recently worked with a large,maritime shipping company in Norway that specializes in
187、global logistics and shipping solutions for cars,trucks,rolling equipment,and breakbulk.The project involved developing a solution to enable the company to proof and sell emission reductions to its customers,thereby sharing the premium costs of biofuels.ChallengesThe client wanted to develop a reduc
188、ed carbon service(RCS)solution in which it procures biofuels on behalf of its customers that want to invest in decarbonizing their shipments-related,well-to-wake(WTW)GHG emissions.The solution is designed to reduce the clients Scope 1 emissions while also helping to lower Scope 3 emissions for its c
189、ustomers that pay a premium to reduce their transportation and distribution(downstream)emissions.The emission reductions realized from the RCS solution are calculated based on the volume and quality of the combusted biofuel,compared to the use of conventional fossil fuels.The volume of combusted bio
190、fuel is attributed to each customer based on a mass-balance approach that guarantees the consumption of biofuels across the network of the clients vessels.The biofuel consumption volumes and resulting emission reductions are stored in an emission-reduction bank with credits allocated to customers ba
191、sed on their contractual agreements with the client.25|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article07Article08A
192、rticle09Article10Article04ArticleHow KPMG in the UK helpedKPMG professionals scope of work included the following activities:Develop a technology long-list considering technologies that(i)can result in increased energy efficiency,(ii)capture/treatment of exhaust emissions,and(iii)on-board technologi
193、es to support transition to alternative fuels.Map different vessel types,and respective application of regulation/codes and exemption/equivalence routes.Develop a comprehensive matrix highlighting applicable technologies against appropriate vessel types and regulatory requirements.Analyze the viabil
194、ity of each identified technology route against a set of criteria,including lifecycle emissions abatement potential,technology maturity level,return on investment,commercial viability,safety considerations,and infrastructure readiness.KPMG in the UK helped provide the following benefits to the clien
195、t:The study delivered an in-depth analysis and evaluation of different technologies that could lead to a reduction in carbon emissions across the maritime sector,including evaluating each technology against a number of criteria(mercial viability,growth potential,technical barriers,emissions abatemen
196、t potential,and applicability to vessel types).For each of technology/vessel combinations in the final prioritized list,the MCA has been provided with a set of recommendations for applicable regulatory changes/advancements,to unlock opportunities for mass adoption of prioritized technologies.The fin
197、al report included evidence-based recommendations with suggested ownership and next steps,enabling the MCA to engage with industry and deliver a cleaner maritime economy and better growth opportunities.Benefits to the clientChallenges With recent UK government announcements such as the 10 Point Plan
198、,the maritime sector is now seen as crucial to helping achieve the countrys net zero 2050 targets.The Clean Maritime Plan states that the UK should have a proactive role in the transition to zero-emission shipping,be seen as a global role model,and successfully capture a significant share of the eco
199、nomic,environmental,and health benefits that follow.KPMG in the UK was asked to help create a clearer picture of potential emission-reduction technology routes,and their applicability in light of different vessel types and regulatory codes.In particular,the KPMG team was needed to help assess the vi
200、ability of available and future technology solutions,including key regulatory,technology and commercial barriers that might need to be overcome.KPMG professionals in action:Helping the UK maritime sector map an effective course for carbon reductionKPMG in the UK was commissioned by the Maritime and
201、Coastguard Agency(MCA)in the UK to help explore decarbonization technology and regulatory pathways for the countrys maritime sector.26|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All ri
202、ghts reserved.01Article02Article03Article04Article05Article06Article07Article08Article09Article10Article04ArticleFood versus fuel:A recent discussionA panel discussion at the 2024 KPMG Global Energy Conference brought to light several challenges and opportunities in the fuel-versus-food debate.The m
203、ain question is whether the land,water,and other resources used for growing biofuel crops could be better used for growing food crops,thereby addressing the global food shortage.One panelist emphasized the need to find ways to evolve beyond choosing between food or fuel,suggesting that technology co
204、uld play a crucial role in resolving this issue.The panelist pointed out that the debate is not just about choosing between food and fuel,but also about understanding the complexities and trade-offs involved in this decision.Another panelist,representing a leading bioethanol producer,highlighted the
205、ir companys production of corn oil,which is used as a feedstock for various products,including renewable diesel.Emphasizing the importance of traceability in the supply chain,the panelist stressed the need to ensure the sustainability of feedstocks.The question of food-versus-fuel is a complex issue
206、 that requires the careful consideration of multiple factors.The potential conflict between food and fuel production presents significant challenges,but also opportunities for technological innovation and the development of alternate fuels.One thing is clear a balanced approach is required that cons
207、iders a number of trade-offs,which will only grow more complex in the years ahead.27|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article
208、05Article06Article07Article08Article09Article10Article04ArticleStrategizing the transition to alternative fuels0528|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Art
209、icle02Article03Article04Article06Article07Article08Article09Article10Article05Article37 Maersk website,“Designing the future of our customers supply chains with carbon-neutral methanol vessels”(December 8,2021).To achieve positive outcomes in the alternative fuels value chain,organizations will need
210、 to consider where and how they want to play as well as how to develop and deploy their preferred option at scale.In addition,adopting greener fuels can also address stakeholder expectations about the environmental,social and governance(ESG)posture of an organization.This will of course vary by orga
211、nization,by end use,and by fuel type,but we believe there are several important steps that organizations should take.Next steps for transport leadersTo effectively navigate this transition,organizations should consider the following strategic actions:Conduct a comprehensive analysis of regional fuel
212、 supply chains and regulatory frameworks to identify the most viable alternative fuels for your operations.The adoption of fuels will be connected to evolving technology,propulsion systems,and the overall economics of supply and demand.Many organizations will likely need to reshape both their techno
213、logy approach and cost base37 to keep their business on a sustainable footing.As we have shown in the pages above,this requires an understanding of both the alternative fuels options available and how they combine with the requirements and expectations of end-users.Develop a strategy that plays to y
214、our strengths and be clear on how this differentiation will be maintained over time.It is therefore important for the organization to have full clarity on where and how they are going to play,why they believe that is the right approach,and how they will maintain an advantage with their position over
215、 time.This is basic business strategy,but it can sometimes be lost in fast-evolving sectors where noise about trends and“winners”can distract from traditional growth and profit pool analyses.We would recommend taking a methodical approach because small changes to your choices,such as geography and t
216、argeted end-markets,could have significant effects.In addition,organizations need to be nimble enough to take advantage of emerging policy and regulations designed to jump-start the market adoption of new fuels.Making the shift from simply demonstrating regulatory compliance to embracing a much broa
217、der energy transformation means that organizations can stay ahead of the game in terms of evolving green policies.As the rapidly maturing EV market shows,there is a window of opportunity to leverage regulatory support for new fuels adoption.Leveraging regulatory change as a driver for value creation
218、 should encourage organizations to adopt alternative fuels much faster.Policy makers,the energy value chain,airlines,banks and lessors,each can point to what the others should be doing more of to accelerate the transition.But there are relatively low-risk steps each can be more adventurous with toda
219、y,regardless of what the others do.”Chris BrownPartner,StrategyKPMG in Ireland29|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Ar
220、ticle06Article07Article08Article09Article10Article05Article38 Global Maritime Forum,“The scale of investment needed to decarbonize international shipping”(January 2020).39 Global Maritime Forum,“Annual Progress Report on Green Shipping Corridors 2023”40 ICAO website,“Carbon Offsetting and Reduction
221、Scheme for International Aviation(CORSIA)”,Accessed May 7,2024.41 Splash 247,Asia Shipping Media,“IKEA and other major brands invite bids for zero-emission shipping”(September 14,2023).Build and test your business case(s).This step has proved the hardest for many companies because assumptions about
222、market conditions or level of investment required have not been fully tested.Energy transition may be costly.For example,it is estimated that the cumulative investment needed between 2030 and 2050 to achieve the IMO emission reduction targets for shipping is up to US$1.2 trillion,or between US$40 to
223、 US$60 billion annually for 20 years.38 Carefully targeted investments will be needed to fully develop and scale alternative fuels.Organizations should develop a detailed understanding of the total cost of ownership(TCO)for transport assets and infrastructure involving alternative fuels.Organization
224、s sometimes neglect key facets of the TCO over long periods of time.While most TCO models include the costs associated with new asset acquisitions,fuel prices,maintenance,and various taxes,tolls,and levies,they might not account for unpredictable factors concerning technologies,pricing,or changing c
225、osts.Forge strategic alliances with technology providers,research institutions,and industry stakeholders to accelerate the development and deployment of alternative fuels.Large-scale collaboration can help drive transformation.Commercial and public transportation players need to actively pursue part
226、nerships,joint ventures,and alliances,not only within their industry but also across sectors to address transition challenges effectively.For example,collaborative initiatives among governments,organizations,industry stakeholders,technology providers,and research institutions can help with the devel
227、opment and deployment of new fuel technologies.This might involve joint funding,research,and demonstration projects.Public-private partnerships can also advance the adoption of alternative fuels.As another example,insights from green trade corridors,driven by the maritime shipping industry,could be
228、applied to other commercial and public transportation industries.These corridors,which have doubled in number to 44 in 2023,39 focus on lower carbon operations,involve stakeholders across the wider shipping transportation value chain,and support cost-effective ways to introduce alternative fuels ove
229、r the next decades.Organizations could emulate the aviation sectors approach to carbon offset and its Carbon Offsetting and Reduction Scheme for International Aviation(CORSIA)40 alliance,which aims to stabilize aviation emissions in the short to medium term.Where change is happening rapidly,it is of
230、ten being driven by the largest consumer-focused organizations such as IKEA,Coca Cola,and PepsiCo.IKEA alone carries out about two million shipments per year and,along with these other huge consumer businesses,is taking on more responsibility to decarbonize transportation.41 Using these steps to und
231、erstand and frame the transition can help as you build your specific alternative fuels roadmap and reduce some of the uncertainty associated with the energy transition.Using this framing can also allow your organizations to operate with their net zero goal in sight,using collaboration and innovation
232、 to accelerate their decarbonization journeys.Ultimately,it can provide a more cost-effective route to adopt alternative fuels and other energy transition priorities,ensuring operations remain stable while not compromising performance.30|Evolution of transport fuels 2024 Copyright owned by one or mo
233、re of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article07Article08Article09Article10Article05ArticleKey expected benefits or proactive engagementOrganizations that take a proactive app
234、roach can potentially reap significant benefits,including:Enjoying first/early-mover advantage in these new and developing markets Taking advantage of available and emerging government subsidies,funding,and incentives Testing and refining their fuel strategies based on experience rather than percept
235、ion Transitioning at their own speed rather than facing eleventh-hour disruptions due to regulatory deadlines or sudden market changes Establishing themselves publicly as leaders,not laggards,on the path to sustainabilityFor large,complex sectors such as commercial and public transportation,building
236、 an effective roadmap can be enhanced with elements such as strategic development and scenario planning;outcome-based decision-making;in-depth assessment of procurement;and end-to-end supply chain mapping.It may not be one versus the other.In the race towards decarbonization,it is likely that all lo
237、w-carbon fuels will find a place in the energy transition journey.The choice of technology for different countries and players will depend on the resources available,policy push,facilitative supply chains,availability of infrastructure,ease of implementation,and the availability and scale of investm
238、ents.Looking ahead:Steps and pathways to sustainabilityEnergy transition in the commercial and public transportation wont be an immediate change or pivot so much as a series of steps along different pathways stretching well into the future.Renewable fuels and components could play many roles in the
239、years ahead as the industry moves from one molecule,fuel and use-case to another.We may see a cascade of fuels such as gasoline and diesel displace higher emitting fuels such as bunker fuel in shipping.In addition,todays alternative fuels will most likely be replaced by other technologies that are e
240、ven more efficient in providing low or zero-emission transportation.As we have noted,the aviation sector is already using SAF as a component within its jet fuel mix,and this sectors use of renewable fuels will likely last for many years as alternative powertrain technology continues to emerge.Howeve
241、r,once alternative technologies are developed the need for sustainable aviation fuels will cease.Cost and efficiency considerations could mean that maritime shipping could act as the ultimate home for existing fossil fractions along with renewable fuels and components.The story for diesel trucks wil
242、l likely mirror that of passenger cars where the growing adoption of EVs is reducing the need for alternative fuels.However,the shift away from diesel vehicles is likely to take longer because a range of low and zero-emission technologies compete for that segment.As trucks shift away from diesel,add
243、itional biodiesel and renewable diesel sources could be converted into aviation fuel or other products.Anvesha ThakkerGlobal Co-Lead Climate Change&DecarbonizationKPMG International andPartner and Lead,Renewable Energy KPMG in India31|Evolution of transport fuels 2024 Copyright owned by one or more
244、of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article07Article08Article09Article10Article05ArticleConclusion0632|Evolution of transport fuels 2024 Copyright owned by one or more of the
245、KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article07Article08Article09Article10Article06ArticleProactive engagement in the energy transition will likely position organizations not only as leaders in
246、 sustainability but also as pioneers in shaping the future of transportation.By leveraging technology,available incentives,and partnerships,organizations can facilitate a smooth transition to alternative fuels,helping ensure stability and resilience in a rapidly changing market landscape.Putting in
247、place a roadmap that is being driven by the net zero goal and facilitated by a reshaping of procurement strategies should help ensure that operations remain stable and are future proofed against growing market uncertainties.There is a critical role for the private sector in leading the energy transi
248、tion for these industries.As regulations tighten,making the economic outlook for fossil fuels less certain,they risk their assets being stranded if they do not act quickly.Equally,by making the changes necessary to adopt these new fuels,they will be well positioned to take advantage of new value opp
249、ortunities associated with them.As noted in the KPMG report“Turning the tide in scaling renewables,”renewable energy is estimated to make up 77 percent of the worlds primary energy supply by 2050.To achieve this target,renewable energy deployment must triple from 2022 levels by 2030.The adoption of
250、alternative fuels is a significant part of the global effort to support sustainability.Of the 3,190 companies that have committed to net zero with the Science-based targets initiative(SBTi)as of 20 May 2024,253 companies are in transportation and transport infrastructure.43 A transition that is both
251、 smooth and successful will require not just financial commitment and operational flexibility but also greater collaboration among stakeholders from multiple countries and governments.Robust strategic planning,an emphasis on collective responsibility,and prompt action will also be required.The chall
252、enges of adopting alternative fuels are apparent,but so are the potential benefits.Equally clear is the fact that now is the time for organizations across the industry to begin or accelerate their journey toward a world powered in large part by sustainable alternative fuels.As the industry continues
253、 to evolve,staying informed and agile will be key.We encourage transportation leaders to utilize the detailed data and strategic recommendations presented in this report to drive meaningful progress in their decarbonization efforts.A lot of the actions on climate change should happen before 2030 for
254、 us to have a real chance at keeping global warming below 1.5C.Im very positive that even before we hit 2030,we will see biofuels playing a very significant role.”42Anish De Global Head of Energy,Natural Resources,and Chemicals KPMG International 42 Energy Connects,“Bio-energy to play a key global r
255、ole in shaping the energy transition this decade,says KPMG”(March 25,2024).43 Science Based Targets website,“Companies taking action Science Based Targets Initiative”,Accessed May 7,2024.33|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG Inter
256、national entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article07Article08Article09Article10Article06ArticleResearch methodology0734|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG In
257、ternational entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article08Article09Article10Article07ArticleEight alternative fuels Low-carbon ammonia,Biofuels,Dimethyl Ether,Methanol,Natural gas(LNG and CNG),Bio-SAF,e-fuels(renewable pathways),L
258、PG(Propane)have been benchmarked against mode-specific conventional fuels to assess the performance.The conventional fuels considered are Heavy Fuel Oil(HFO)and Marine Gas Oil(MGO)for maritime,Aviation Turbine Fuel(ATF)for aviation and diesel for road transport.The alternative fuels are benchmarked
259、against the conventional fuels,per sector,using the following readiness factors:Environmental performance:Lifecycle climate-related impacts of the fuel measured as a GHG emissions factor Cost effectiveness:Affordability compared to conventional fuels for specific modes and use cases Energy density:P
260、roductive energy content per volume of fuel Operational reliability:Reliability of propulsion technology utilizing the alternative fuel Market readiness:Commercial readiness of the fuel production technology pathways Technological maturity:Commercial readiness of the propulsion technology utilizing
261、the fuel Infrastructure compatibility:Compatibility of conventional fuel infrastructure with alternative fuels and cost of developing new infrastructure for the fuels Regulatory readiness:Readiness of standards and regulations for the fuel at national,regional,multi-regional and international levels
262、To score these factors,a set of indicators is applied to each factor.The table below describes the indicators used for each of the readiness factors.Readiness factorIndicatorEnvironmental performanceScore based on reduction in well-to-wheel or well-to-wake(WTW)greenhouse gas(GHG)emissions per unit o
263、f productive output(net calorific value)versus conventional fuelCost effectivenessScore based on reduction in production cost or price per energy unit versus conventional fuelsEnergy densityVolumetric energy density of the fuel representing energy content per volume measured in MJ/LOperational relia
264、bilityQualitative score based on KPMG research and expert inputMarket readinessQualitative score based on technology readiness level(TRL)from IEA Energy Technology Perspectives(ETP),KPMG research and expert inputTechnological maturityQualitative score based on technology readiness level(TRL)from IEA
265、 Energy Technology Perspectives(ETP),KPMG research and expert inputInfrastructure compatibilityQualitative score based on cost of developing infrastructure and adaptability of conventional fuel infrastructure for the alternative fuel being assessedRegulatory readinessQualitative score based on matur
266、ity of regional,multi-regional and international standards and regulations for the fuel and the fuel infrastructure35|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01A
267、rticle02Article03Article04Article05Article06Article07Article08Article09Article10Article07ArticleThe scoring for these indicators followed a mix of qualitative and quantitative approaches.Insights from the KPMG subject matter professionals are used to score the operational reliability,market readines
268、s,technological maturity,infrastructure compatibility,and regulatory readiness of the alternative fuels.Exhaustive research(see sources below)using industry reports on alternative fuels by government bodies and energy institutes has been used to evaluate the environmental performance,cost effectiven
269、ess,and performance efficiency of alternative fuels.A scorecard is developed to represent the levels of maturity of these alternative fuels.The scorecard follows a scale of 1-5 representing the following levels of maturity:Low:1.0 Low to Medium:2.0 Medium:3.0 Medium to High:4.0 High:5.0Conventional
270、fuels have been scored 3.0 in the environmental performance,cost effectiveness,and performance efficiency indicators.This represents a medium level of maturity and a basis for the benchmark.For the other indicators,including operational reliability,market readiness,technological maturity,infrastruct
271、ure compatibility and regulatory readiness,the conventional fuel is scored 5.0,given the high maturity levels in the market.These scores are used to benchmark the alternative fuels against the conventional fuels.The scoring for these fuels is done across the three modes of transport aviation,maritim
272、e,and road transit.After scoring each fuel at the sector level,the overall scores for these alternative fuels are calculated as an average of the factors for these fuels across applicable transport modes.36|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International en
273、tities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article07Article08Article09Article10Article07ArticleSources0837|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPM
274、G International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article07Article09Article10Article08ArticleInstitutionsDepartment for Energy Security and Net Zero(DESNZ),”Greenhouse gas reporting:conversion factors 2023.2023,h t t p s:/w w w
275、.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2023International Energy Agency(IEA),”ETP Clean Energy Technology Guide“.2023,h t t p s:/w w w.iea.org/data-and-statistics/data-tools/etp-clean-energy-technology-guideScience Based Targets,“Companies taking action-Science Ba
276、sed Targets Initiative.2024.h tt p s:/s ci e n ce b as e dt arge ts.o r g/U.S.Department of Energy,”Fuel Prices“,Alternative Fuels Data Center,2024.h t t p s:/afdc.energy.gov/fuels/prices.htmlU.S.Department of Energy,”Fuel properties comparison“,Alternative Fuels Data Center,2024.h t t p s:/afdc.ene
277、rgy.gov/fuels/propertiesReportsMrsk Mc-Kinney Mller Center for Zero Carbon Shipping,”Documentation and assumptions for NavigaTE 1.0“,2022.h t t p s:/ Federation for Transport and Environment AISBL,”Cost of clean shipping is negligible:Case study for 6%green e-fuels and stringent ETS“,Transport&Envir
278、onment,2022.h t t p s:/w w w.transportenvironment.org/uploads/files/Cost-of-clean-shipping-is-negligible-_-Case-study-for-6-green-e-fuels-and-stringent-ETS_Final_Corrected.pdfInternational Council on Clean Transportation,”Comparing the future demand for,supply of,and life-cycle emissions from bio,sy
279、nthetic,and fossil LNG marine fuels in the European Union“,2022.h t t p s:/theicct.org/wp-content/uploads/2022/09/Renewable-LNG-Europe_report_FINAL.pdfSmart Freight Centre,”GHG emission factors for road freight vehicles“2021.h t t p s:/smart-freight-centre- research Centre(European Commission),”JEC
280、Well-TolWheels report v5“,Publications Office of the European Union,2020.h t t p s:/dx.doi.org/10.2760/100379IEA-Advanced Motor Fuels,”Sustainable Aviation Fuels Status quo and national assessments“,2023.h t t p s:/iea-amf.org/app/webroot/files/file/Annex%20Reports/AMF_Task_63.pdfTransport and Envir
281、onment,”Cost of clean shipping is negligible-Case study for 6%green e-fuels and stringent ETS“,2022.h t t p s:/ North-West Europe H2SHIPS,”System-Based Solutions for H2-Fuelled Water Transport in North-West Europe:Comparative report on alternative fuels for ship propulsion“2020.h t t p s:/vb.nweurop
282、e.eu/media/14694/210225_h2ships_t232_compassesmtaltfuels-02.pdfPembina Institute,”Carbon intensity of blue hydrogen production:Accounting for technology and upstream emissions“,2021.h t t p s:/w w w.pembina.org/reports/carbon-intensity-of-blue-hydrogen-revised.pdfIRENA Methanol institute,”Innovation
283、 outlook:Renewable Methanol“,2021.h t t p s:/w h t t p s:/w w w.methanol.org/wp-content/uploads/2020/04/IRENA_Innovation_Renewable_Methanol_2021.pdfMethanol Institute,”Carbon footprint of methanol“,2022.h t t p s:/w w w.methanol.org/wp-content/uploads/2022/01/CARBON-FOOTPRINT-OF-METHANOL-PAPER_1-31-
284、22.pdfNikita Pavlenko and Stephanie Searle,”Working Paper 2021-11:Assessing the sustainability implications of alternative aviation fuels“,International Council on Clean Transportation(ICCT),2023.h t t p s:/theicct.org/sites/default/files/publications/Alt-aviation-fuel-sustainability-mar2021.pdfAcad
285、emic PapersVedant Ballal,Otvio Cavalett,Francesco Cherubini,Marcos Djun Barbosa Watanabe,”Climate change impacts of e-fuels for aviation in Europe under present-day conditions and future policy scenarios“,Fuel,2022.h t t p s:/doi.org/10.1016/j.fuel.2022.127316Maria Fernanda Rojas-Michaga,Stavros Mic
286、hailos,Evelyn Cardozo,Muhammad Akram,Kevin J.Hughes,Derek Ingham,Mohamed Pourkashanian,”Sustainable aviation fuel(SAF)production through power-to-liquid(PtL):A combined techno-economic and life cycle assessment“,Energy Conversion and Management,2023.h t t p s:/doi.org/10.1016/j.enconman.2023.117427A
287、vishai Lerner,Michael J.Brear,Joshua S.Lacey,Robert L.Gordon,Paul A.Webley,”Life cycle analysis(LCA)of low emission methanol and di-methyl ether(DME)derived from natural gas“,Fuel,2018.h t t p s:/doi.org/10.1016/j.fuel.2018.02.066 Peter Styring,Peter W.Sanderson,Isaac Gell,Galina Skorikova,Carlos Sn
288、chez-Martnez,Guillermo Garcia-Garcia,Soraya Nicole Sluijter,”Carbon footprint of Power-to-X derived dimethyl ether using the sorption enhanced DME synthesis process“,Sustain,2022.h t t p s:/doi.org/10.3389/frsus.2022.1057190Giorgio Zamboni,Filippo Scamardella,Paola Gualeni,Edward Canepa,”Comparative
289、 analysis among different alternative fuels for ship propulsion in a well-to-wake perspective“,Heliyon,2024.h t t p s:/doi.org/10.1016/j.heliyon.2024.e26016OthersBusiness Analytiq,”Dimethyl Ether price index“,2024.h t t p s:/ of transport fuels 2024 Copyright owned by one or more of the KPMG Interna
290、tional entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article07Article08Article09Article10Article08ArticleKPMG firms role in the energy transition0939|Evolution of transport fuels 2024 Copyright owned by one or m
291、ore of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article07Article08Article10Article09ArticleKPMG firms offer a detailed suite of services tailored to support the transportation,infrast
292、ructure and energy sectors in achieving their decarbonization goals.Our approach leverages deep industry knowledge and innovative technological solutions tailored to the unique challenges of the energy transition.Decarbonization pathways:Strategic foresight and operational value in the decarbonizati
293、on journey,from emissions measurement to implementation.Energy transition advisory:Development of strategies to replace traditional power sources with renewable energy,including regulatory strategy and hydrogen project advisory.Low-carbon fuels consulting:Broad support with tested tools and methodol
294、ogies for navigating regulatory changes and capturing opportunities in the low-carbon fuels sector.Sustainable supply chain and procurement:Positioning sustainable supply chain and procurement at the core of operational strategy to help reduce environmental footprints.Tax and legal services:Navigati
295、ng complex tax incentives,grants,and environmental taxes.Assessing carbon trading implications and managing compliance risks to enhance funding and cost management.Workforce transition and strategy transformation:Aligning decarbonization goals with enterprise strategy and providing broader transform
296、ation support.Deal advisory:Offering deal valuation,M&A support,and post-merger integration to help manage investments and achieve strategic objectives in the context of the energy transition.40|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG
297、International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article07Article08Article09Article10Article09ArticleKPMG industry analyst recognitions1041|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG Internation
298、al entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Article05Article06Article07Article08Article09Article10ArticleKPMG professionals work with organizations across multiple business functions,sectors and geographies to develop and he
299、lp execute energy transition plans.Our people have helped businesses assess their opportunities,develop their plans,allocate their capital and report on their achievements.As a result of this experience in assessing and addressing clients energy transition business challenges,KPMG firms are frequent
300、ly identified as leaders in various key analyst reports.KPMG recognized as a global leader in ESG and Sustainability Consulting Verdantix has named KPMG firms as a global Leader in ESG and Sustainability Consulting,in its latest report entitled Green Quadrant:ESG and Sustainability Consulting 2024.I
301、n this report,Verdantix outlines,“Large firms at various levels of ESG maturity,looking for integrated sustainability solutions,should approach KPMG,to profit from its synergistic approach to sustainability.KPMG is also well-suited to firms that require a strategy lens for climate,carbon,circular ec
302、onomy,and water-and nature-related reporting and disclosures.In addition,businesses should contemplate using KPMGs services for projects involving the testing of governance models for ESG-relevant inadequacies,and to benefit from the providers capabilities in anticipating and managing ESG-related re
303、putational risks,and threats from potential litigation and shareholder activism.”To view the report,click here.KPMG named a worldwide leader in ESG Program Management ServicesIDC has named KPMG firms as a worldwide leader in ESG Program Management Services.In the report,IDC MarketScape:Worldwide ESG
304、 Program Management Services 2023-2024 Vendor Assessment,KPMG technology-powered solutions were called out as a strength,“KPMGs services adjacent software was one of the strongest in the assessment.By offering a wide range of software to supplement its service engagements,KPMG empowers its clients t
305、o continually drive impact even after the services engagement has ended.”To view the report,click here.42|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Arti
306、cle03Article04Article05Article06Article07Article08Article09Article10Article10ArticleMalini Bose Associate Director KPMG in the UKSameer Bhatnagar Partner KPMG in IndiaLyndie Dragomir Senior Director,Head of Global Sector&Channels Marketing KPMG InternationalMassimo Fabrizio Mondazzi Partner,EMA Ener
307、gy,Natural Resources and Chemicals Lead ESG Hub KPMG in ItalyBrooke Harris Director Sustainability,Energy Transition KPMG in the USDr.Cherry Hu Partner,ESG Advisory/Decarbonization Services Lead KPMG ChinaWen Bin Lim Partner,Infrastructure Advisory KPMG in SingaporeAbirbhav Mukherjee Manager,Strateg
308、y&Operations KPMG in IndiaEvelio Robles Alejo Manager,Energy Transition Deals KPMG in the UKMatthew Roling Director Advisory,Sustainability KPMG in the USCharlie Sabbithi Associate Director,Infrastructure&Climate Advisory KPMG in India Matthew Sebonia Director,Energy Transition Deals KPMG in Switzer
309、landPrahlad Tanwar Partner,Global Head of Logistics&Postal Services KPMG in IndiaJuhi Verma Advisor,Infrastructure Advisory KPMG in the UKYuan Zhang Associate Director KPMG in the UKKey contributorsAcknowledgementsWe could have not created this report without the support,knowledge and insights of co
310、lleagues around the world who contributed their time and energy to its planning,analysis,writing and production.Thank you to Lily Ainapure,Clive Adendorff,Julie Adams,Philip Connolly,Richard Cole,Nicole Duke,Erin Dodds,Sam Eshraghi,Ben Foulser,Omkar Sunil Ghodke,Mike Hayes,Jessica LoSchiavo,Maria Ma
311、llinos,Gary Silberg,Stephane Souchet,Richard Threlfall,Berrin Vural and Steffen Wagner.43|Evolution of transport fuels 2024 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.01Article02Article03Article04Ar
312、ticle05Article06Article07Article08Article09Article10ArticleThe information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.Although we endeavor to provide accurate and timely information,there can be no guarantee that su
313、ch information is accurate as of the date it is received or that it will continue to be accurate in the future.No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.2024 Copyright owned by one or more of the KPMG Intern
314、ational entities.KPMG International entities provide no services to clients.All rights reserved.KPMG refers to the global organization or to one or more of the member firms of KPMG International Limited(“KPMG International”),each of which is a separate legal entity.KPMG International Limited is a pr
315、ivate English company limited by guarantee and does not provide services to clients.For more detail about our structure please visit KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization.Throughout this document,“we”,“KPMG”,“us”and“our”r
316、efers to the global organization or to one or more of the member firms of KPMG International Limited(“KPMG International”),each of which is a separate legal entity.Designed by Evalueserve.Publication name:Evolution of transport fuels|Publication number:139463-G|Publication date:June Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.