Assessment method.

Zero-Carbon Fuel Monitor is a framework for assessment of the readiness of zero-carbon fuels. LR’s experts rate fuels based on the currently available evidence and the objective judgements of our industry specialists. 

We hope that regular publication of updates will encourage feedback and contributions from industry stakeholders. Your input will help refine the assessments so the shipping community can carry out projects and initiatives to advance solution readiness, helping the industry achieve its decarbonisation goals.

The framework is structured into five main supply chain stages across the lifetime of a fuel, from natural resources through to vessel propulsion, as the diagram shows.

There are three assessment criteria: technology readiness (TRL), investment readiness (IRL) and community readiness (CRL).  So each fuel is given a total of fifteen ratings across the supply chain. In some cases the onboard storage and handling stage is combined with the propulsion stage into an overall ship stage, in which case a fuel receives twelve ratings.

The technology readiness level indicates the maturity of a solution within the research spectrum from the conceptual stage to being marine application-ready. It is based on the established model used by NASA¹ and other agencies and institutes, using a 9-level scale.

The investment readiness level indicates the commercial maturity of a marine solution on the spectrum from initial business idea through to reliable financial investment. It addresses all the parameters required for commercial success, based on work by the Australian Renewable Energy Agency (ARENA)² . The 6-level scale used summarises the commercial status of the solution and is determined by the available evidence in the market.

At each level the assessment is made across several indicators that are key for successful commercialisation:

• Technical performance
• Financial proposition – costs
• Financial proposition – revenue
• Industry supply chain and skills
• Market opportunities
• Company maturity

The community readiness level indicates the societal maturity of a marine solution in terms of acceptability and adoption by both people and organisations. It is gauged on the spectrum from societal challenge through to widespread adoption. CRL is based on the work by ARENA² and Innovation Fund Denmark³ adapted to a 6-level scale.

At each level the assessment is made across several indicators that are key for successful adoption:

• Regulatory (safety)
• Regulatory (environment)
• Community acceptance
• Sustainability (lifecycle analysis or LCA)
• Sustainability (Environment)
• Sustainability (Social-economic)

The assessment is carried out for a selection of the most promising zero-carbon fuels across the entire fuel supply chain from resource through to vessel propulsion. Resources refers to the basic natural resources and feedstocks from which fuels are produced.  The production stage includes all processing of resources and intermediate products used to create fuels.  For example,  renewable hydrogen (re:Hydrogen) is covered in production, not resources, as it is a product of other processes such as electrolysis.

Whilst Zero-Carbon Fuel Monitor assesses each area of the supply chain separately, some assessments are carried out at the onboard ship level, comprising the fuel storage and handling and propulsion areas combined.

Zero carbon fuels can be produced in a range of different ways.  LR has made assessments of fuels in three main categories of the production process.

re-Electrofuels: Fuels produced from sustainable natural resources that use hydrogen as a carrier or as the final output.

Natural gas with carbon capture: Fuels that are produced from natural gas with CCS to produce low carbon hydrogen as a carrier or as the final output.

Sustainable biomass-derived fuels: Fuels which aim to be net zero by releasing an amount of carbon dioxide equivalent to that captured in the creation of the biomass resource material.

The generic fuel production processes that have been used to develop the assessments are given in the diagrams below.

Readiness levels are based on the objective judgements of our industry specialists combined with an assessment of available evidence. The TRL dashboard references the available technology evidence, which is derived from publicly available information. This includes company websites, news and press releases, and industry websites.

Evidence for IRL and CRL is closely linked to that referenced in the TRL database, additional information is continuously being added.

We have published Zero-Carbon Fuel Monitor as a minimum viable product in order to  stimulate ideas and contributions. The tool will be continuously developed by adding fuels, technologies and evidence, and refining the assessments made. We appreciate all comments and suggestions that help develop the concept and increase its impact in achieving zero carbon shipping by 2050.

1. https://www.nasa.gov/directorates/heo/scan/engineering/technology/technology_readiness_level
2. https://arena.gov.au/assets/2014/02/Commercial-Readiness-Index.pdf
3. https://www.doa.go.th/plprotect/wp-content/uploads/2020/08/4.9-Societal-Readiness-Levels-SRL-and-Techology-Readiness-Levels-TRL.pdf