In an interview with Maritime Fairtrade, Thorbjorn Fors, senior vice president, Siemens Energy, and managing director, Siemens Energy Asia Pacific, talked about the challenges that are shaking the energy supply in the maritime industry, and the movement towards common decarbonization goals.
How can maritime industry enable a reliable and secure energy supply in the green transition?
The maritime industry is currently at a turning point as we work to meet the International Maritime Organization (IMO)’s emission reduction targets. This presents an exciting challenge, but it also raises crucial questions about how we can ensure a reliable and secure energy supply during this transition.
Diversifying fuel sources, such as LNG, hydrogen, and ammonia, is essential to mitigate supply chain risks and enhance energy security. While full electrification remains the ultimate goal, the current state of technology — particularly in the Asia Pacific (APAC) — often makes a hybrid approach the more practical option.
Importantly, the energy transition is not something we can tackle alone. It will require close collaboration among ship owners, fuel suppliers, port authorities, and policymakers to achieve our objectives. This is a team effort, and each of us has a vital role to play.
Which of the alternative fuels have a competitive edge?
In APAC, we are seeing progress with alternative fuels like biofuels, hydrogen, ammonia, and green methanol. Among these options, green methanol and ammonia are particularly promising due to their lower lifecycle emissions and the increasing availability of supporting infrastructure.
Green methanol offers advantages in terms of storage and handling, making it a more accessible choice. Meanwhile, ammonia stands out for its energy density and potential for decarbonization, which renders it an attractive option as well.
However, both fuels face challenges, particularly regarding certification and supply chain logistics. Currently, green methanol is leading the charge, especially given its widespread use in the region.
How has the energy sector been this year and what reasons led to that?
The energy sector has been pretty robust this year, largely driven by increasing electricity demand as economies in the region continue to grow. Coming out of the pandemic, we’ve seen energy demand rise significantly, especially in emerging markets. On top of that, geopolitical tensions, like the Russia-Ukraine conflict, have disrupted supply chains and added some volatility in the market.
At the same time, the shift toward renewable energy — solar, wind, and others — has been a major factor in driving the sector forward in 2023. It’s clear that the market is leaning on a diverse mix of solutions to support both economic growth and decarbonization efforts.
ESG initiatives are great pressure and pivot points. How is the energy sector handling this?
Sustainability is at the heart of what we do, and we are proud of the progress we have made and will continue to improve. However, we know that implementing ESG initiatives can be tough for emerging markets. They often face challenges like limited regulations, resource shortages, and capacity gaps. This makes it hard to enforce environmental rules, and smaller businesses may not have the knowledge or tools to adopt effective ESG strategies.
However, these challenges also create opportunities. By working together with governments, industries, and communities, we can promote sustainable practices while improving energy access. Our goal is for a sustainable and just energy transition.
What policy actions and investments are fundamental in maintaining a healthy energy market in Southeast Asia?
Southeast Asia’s energy market is set for significant growth in the coming years, and collaboration will be key to ensure a successful transition. The ASEAN Plan of Action for Energy Cooperation (APAEC) targets achieving 23 percent of the region’s energy from renewable sources by 2025. This regional cooperation is crucial as it enables countries to share resources, technology, and expertise, resulting in cost savings, improved energy security, and a stronger collective response to energy challenges.
Countries like Malaysia are making notable progress with their National Energy Transition Roadmap (NETR), which aims for 70 percent of electricity to come from renewable sources by 2040. Similar ambitions are evident across Vietnam’s target of 20 percent of total electricity generation from renewables by 2030, and the Philippines’ commitment to achieve a 35 percent renewable energy share by 2030 and 50 percent by 2040.
To meet the increasing energy demands while aligning with clean energy objectives, Southeast Asia must invest significantly in energy infrastructure, clean technologies, and capacity-building initiatives. With the right policies and investments in place, the region can effectively address its energy challenges while fostering sustainable growth and environmental stewardship.
Photo credit: Siemens Energy. Thorbjorn Fors, senior vice president, Siemens Energy.
