“The world’s oil demand is projected to peak by the end of 2030. Consistent investing in innovative technologies to advance clean, green or renewable energy is critical for the future stability of business and planet earth,” says Chair of Audit, Risk and Sustainability Committee at AET Tankers, Colin Low.
Colin is also member of our Singapore Chapter (Climate Governance Singapore)
In recent years, the demand for fuel has continued to rise, with global oil demand growth set to continue to grow steadily from 103.4 mb/d in 2024 to peak at 105.5 mb/d by 2030. The last five years have been blighted by the Covid pandemic, ongoing geopolitical tensions, supply chain disruptions and significant energy market shifts (from supply and demand perspectives – think USA, China, Saudi Arabia and OPEC); all of which highlight the crucial need to pioneer alternative fuels that will secure and stabilise the future of business, and the pursuit of Net Zero by 2050.
Bold innovation for a sustainable future
Around the world, companies across all sectors are investing in innovation to future-proof their business models, particularly those with a heavy reliance on crude oil for their operations and output, such as transportation. The pressure is on to find new, improved fuels that can meet the world’s energy needs, while helping businesses meet their sustainability goals under the auspices of the 2015 Paris Agreement.
While there have long been renewable alternatives to fossil fuels, such as solar, wind and nuclear power, as well as biomass/biofuel and geothermal energy, there is still a pressing need to pioneer more viable alternatives to meet the growing demand. Investment in the innovation of other zero carbon fuels is integral to creating a sustainable energy future.
Maritime tech is making waves
The shipping industry is a glowing lighthouse in pioneering the use of zero carbon fuels; setting an industry precedent and demonstrating that innovation and long-term vision is needed to drive business performance and mitigate climate-related financial risks.
When it comes to the clean fuel race, AET Tankers (AET) is paving the way for widespread change within the maritime industry. The group has strategic, long-term investments in dual fuel ship assets and an operating and planning culture focused on innovation. Investing in future-ready technologies is key to realising AET’s ambitious net-zero 2050 targets, that are rooted in a clear and comprehensive decarbonisation strategy.
Most notable among these investments is AET’s clear commitment to exploring and innovating alternative, zero carbon fuels. In 2024, it ordered three of the world’s first dual-fuel ammonia tankers, which are currently under construction with a delivery date set for 2027-2028. These ammonia-fuelled ships are testament to AET’s position as an industry pioneer for zero carbon fuels and they set a leading precedent for the rest of the shipping sector.
This trailblazing move is further supported by other decisions across the company: investment in technologies (such as the safe capture of hydrocarbons for cleaner crude tankers), participating in a venture capital company with Shell and Trafigura for methane slip in Switzerland, and an engineering and development focus on ship designs for improved and lower carbon intensity index.
To change course, we must sail as one
Navigating a sustainable future cannot be done in silos. AET emphasises the need to do this “together” – both in maximising the collective effort taking place within the business, and in convening and, wherever possible, collaborating with external stakeholders, regulators and industry counterparts.
Every individual within any business must be conversant and on-board with the decarbonisation strategy and roadmap set for the organisation, to realise its ambitious sustainability targets and goals. This can only come with strong, engaged governance and effective clarity of communication from both management and the board.
Collaborating with external stakeholders and industry counterparts can significantly increase a company’s net positive impact. Further to adding revolutionary dual-fuel ammonia tankers to our fleet, AET is also collaborating with Fleetzero to develop the world’s longest-range hybrid-electric vessel. Such resource-sharing and knowledge-sharing can, and will, drive innovation across the sector and multiply into other sectors too.
Steering towards a clean energy horizon
It’s a tight and competitive landscape to innovate and deliver new, alternative fuels that can quickly become operational and meet growing demand. Ambition is essential to such an endeavour, but so is the clear direction of achieving agreed upon milestones and good governance.
“Businesses must put innovation and long-term vision firmly at the helm of their decarbonisation strategies. Aligning financial stability with sustainability goals alone is inadequate for the long-term: it is also essential to manage climate risks, whilst securing resilient growth.
The accelerated demand for clean and green fuel is our present reality. The future resilience and profitability of business depends on bold investment, innovation, and driving demand for clean technologies across a company’s entire operating model.
The time is now, for boards and business leaders to steer confidently toward a sustainable future for the survival and financial stability of businesses – our legacy for future generations.
In his capacity as Board Senior Advisor for the Diligent Institute, the think-tank arm of the Diligent Corporation, Colin Low delivered his insights at the Singapore Institute of Directors (SID) conference in Singapore in September at the annual Global Network of Director Institutes meeting.
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