Environmental performance
Market readiness
Cost-effectiveness
Operational reliability
Regulatory readiness
Technological maturity
Energy
density
Infrastructure compatibility
Evolution of transport fuels
Aviation
Learn more
Alternative fuels readiness and adoption potential
Maritime
Learn more
Road transport
Learn more
High
Medium
Low
Case studies
Source: KPMG analysis, “Fueling the energy transition” (2024)
Environmental performance
Market readiness
Cost-effectiveness
Operational
reliability
Regulatory readiness
Technological maturity
Energy
density
Infrastructure compatibility
Further detail
Road transport accounts for
45%
nearly
Road transport
INFOGRAPHIC
Promising: Natural gas, LPG, and biofuels (first-generation HVO and renewable diesel)
Emerging alternatives: Methanol and Dimethyl Ether (DME)
Adoption readiness
It may not be one versus the other. In the race towards decarbonization, it is likely that all low-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 investments.
Global Co-Lead Climate Change & Decarbonization, KPMG International and Partner and Lead, Renewable Energy
Previous detail
Download the report
Accelerating diversification
Challenges
Opportunities
As regulations tighten for this sector, alternative-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.
High production costs
Limited infrastructure
Regulatory uncertainties
E-fuels (renewable pathways) face readiness and cost challenges
Immediate emission reductions with biofuels and natural gas
Competitive edge and preparation for stricter regulations
Considerations
Diesel
Biofuels
Dimethyl
Ether
Methanol
Natural gas (LNG and CNG)
E-fuels (renewable pathways)
Hydrogen
Electric
Propane
Aviation
Maritime
Source: International Energy Agency (IEA), "World Energy Outlook 2023" (October 2023)
Anvesha Thakker
KPMG in India
of global oil demand
Environmental performance
Market readiness
Cost-effectiveness
Operational
reliability
Regulatory readiness
Technological maturity
Energy
density
Infrastructure compatibility
Maritime
Road transport
Further detail
Bio-SAF has the potential to reduce carbon emissions in the aviation sector
compared to traditional jet fuel.
65%
by
Aviation
INFOGRAPHIC
Promising: Bio-Sustainable Aviation Fuel (SAF) and
E-fuels (renewable pathways)
Adoption readiness
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 today, regardless of what the others do.
Partner, Strategy
KPMG in Ireland
Previous detail
Soaring sustainability
Challenges
Opportunities
Finding economic ways to transition to net zero cost effectively is imperative for this sector. To mitigate further emissions for growth, several measures will be needed, such as the greater use of alternative fuels, enhancements to air frame designs and engine technologies, operational optimizations, and demand-management solutions.
High costs and scalability issues
Supply chain and feedstock sustainability concerns
Regulatory readiness for E-fuels (renewable pathways)
Position airlines as sustainability leaders
Meet regulatory demands through investment and collaboration
Considerations
Conventional ATF
Bio-SAF
E-fuels
(renewable pathways)
Source: IATA, "Net zero 2050: sustainable aviation fuels" (May 2024)
Chris Brown
Bio-SAF
Traditional
jet fuel
Download the report
Environmental performance
Market readiness
Cost-effectiveness
Operational
reliability
Regulatory readiness
Technological maturity
Energy
density
Infrastructure compatibility
Further detail
of fuels used by global maritime industry are fossil fuels:
100%
Almost
Maritime
INFOGRAPHIC
High readiness: Natural gas (CNG and LNG)
Promising alternatives: Methanol and ammonia
Adoption readiness
Global partnerships are important 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.
Global Head of Shipping
Previous detail
Navigating cleaner waters
Challenges
Opportunities
The IMO introduced regulations to reduce CO2 emissions, as an average across international shipping, by at least 40% by 2030.
High initial investment costs
Infrastructure modifications needed
Safety concerns
Significant emission reductions and operational cost savings
Leverage regulatory incentives for early adopters
Considerations
Conventional VLSFO
Low-carbon ammonia
Low-carbon methanol
Natural gas (LNG and CNG)
E-fuels
(renewable pathways)
Biofuels
Road transport
Aviation
Source: Global Maritime Forum, “The shipping industry’s fuel choices on the path to net zero” (April 2023)
Monique Giese
KPMG in Germany
Heavy fuel oil (HFO)
Light fuel oil (LFO)
and some marine gas oil (MGO).
Download the report
Source: IMO, “2023 IMO Strategy on Reduction of GHG Emissions from Ships,” (July 2023)
Case studies
Aviation
Click the links below
to find out how these industries are adopting alternative fuels across the globe.
Maritime
Road
transport
World Energy began Bio-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 Bio-SAF to San 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 in 2023, supplying fuel to several partner airlines.
Airport fueling
Trucking manufacturers like Volvo are 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.
Trucking
Shipping organizations are exploring other, more innovative alternative fuels. Over the past few years, Unifeeder, a Danish shipping company, has participated in the world’s first maritime trial of Synthetic Natural Gas (SNG) The SNG fuel is a synthetic 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.
Maritime shipping in Europe
Source: Volvo website, "FAQ about electric trucks", Accessed 15 May 2024
Source: US Department of Energy website,
“Sustainable aviation fuel”, Accessed May 14, 2024
Source: Unifeeder website, “Zero CO2 emissions with renewable SNG” (September 20, 2021)
Case studies
Aviation
Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Maecenas porttitor congue massa. Fusce posuere, magna sed pulvinar ultricies, purus lectus malesuada libero, sit amet commodo magna eros quis urna.
Maritime
Road
transport
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 San 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 in 2023, supplying fuel to several partner airlines.
Airport fueling
Trucking manufacturers like Volvo are investing in various alternative-fuel operated trucks. Volvo offers battery, fuel cell and LNG
powered trucks and is researching DME as a fossil fuelalternative. It estimates that by 2030,
50 percent of all Volvo trucks sold in Europe will be electric, using either battery or fuel cell technology.
Trucking
Shipping organizations are exploring other, more innovative alternative fuels. Over the past few years, Unifeeder, a Danish shipping company, has participated in the world’s first maritime trial of Synthetic Natural Gas (SNG) The SNG fuel is a synthetic 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.
Maritime shipping in Europe
Source: Volvo.com
Source:
“Sustainable aviation fuel,” US Department of Energy
Source:
“Zero CO2 emissions with renewable SNG”, Unifeeder.com, September 29, 2021
Environmental performance
Market readiness
Cost-effectiveness
Operational
reliability
Regulatory readiness
Technological maturity
Energy
density
Infrastructure compatibility
Maritime shipping
Road transport
Further detail
SAF has the potential to reduce carbon emissions in the aviation sector
compared to traditional jet fuel.
80%
by
Aviation
INFOGRAPHIC
Promising: Sustainable Aviation Fuel (SAF) and synthetic fuels (PtL).
Adoption readiness
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 today, regardless of what the others do.
Chris Brown
Partner, Strategy
KPMG in Ireland
Previous detail
Download the full report to learn more
Soaring sustainability
Challenges
Opportunities
Finding economic ways to transition to net zero cost effectively is imperative for this sector. To mitigate further emissions for growth, several measures will be needed, such as the greater use of alternative fuels, enhancements to air frame designs and engine technologies, operational optimizations, and demand-management solutions.
High costs and scalability issues
Supply chain and feedstock sustainability concerns
Regulatory readiness for synthetic fuels
Position airlines as sustainability leaders
Meet regulatory demands through investment and collaboration
Considerations
Diesel
Biofuels
Dimethyl
Ether
Methanol
Natural gas (LNG and CNG)
Synthetic fuels (renewable pathways)
Hydrogen
Electric
Propane
Maritime and shipping
Road transportation
Case in point
0
1
2
3
4
5
6
Environmental performance
Market readiness
Cost-effectiveness
Operational reliability
Regulatory readiness
Technological maturity
Performance efficiency
Infrastructure compatibility
Evolution of transport fuels
of the energy needs of the global transport sector are still met by traditional fuels such as gasoline and diesel.
Aviation
Further detail
Alternative fuels readiness factors
Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Maecenas porttitor congue massa.
Natural gas (LNG/CNG)
Maritime and shipping
Further detail
Road transportation
Further detail
Natural gas (LNG/CNG)
Lorem ipsum
Lorem ipsum
Lorem ipsum
Lorem ipsum
Lorem ipsum
Lorem ipsum
Lorem ipsum
Ammonia
Biofuels
Dimethyl Ether
LPG (Propane)
Methanol
Natural gas (LNG/CNG)
SAF
Synthetic fuels
91%
Over
High
Medium
Low
0
1
2
3
4
5
6
Environmental performance efficiency
Market readiness
Cost-effectiveness
Operational reliability
Regulatory readiness
Technological maturity
Performance efficiency
Infrastructure compatibility
Maritime and shipping
Road transportation
Lorem ipsum
Lorem ipsum
Lorem ipsum
Further detail
Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Maecenas porttitor congue massa. Fusce posuere, magna sed pulvinar ultricies.
Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Maecenas porttitor congue massa. Fusce posuere.
Lorem ipsum
XX%
Lorem ipsum dolor sit.
INFOGRAPHIC
Previous detail
Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Maecenas porttitor congue massa. Fusce posuere, magna sed pulvinar ultricies.
Fuel 1
Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Maecenas porttitor congue massa. Fusce posuere.
Lorem ipsum dolor sit.
XX%
INFOGRAPHIC
Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Maecenas porttitor congue massa. Fusce posuere, magna sed pulvinar ultricies.
Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Maecenas porttitor congue massa. Fusce posuere.
Lorem ipsum dolor sit.
INFOGRAPHIC
Fuel 2
XX%
Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Maecenas porttitor congue massa. Fusce posuere, magna sed pulvinar ultricies.
Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Maecenas porttitor congue massa. Fusce posuere.
Lorem ipsum dolor sit.
INFOGRAPHIC
Fuel 3
XX%
Aviation
Quote
Environmental performance efficiency
Cost-effectiveness
Performance efficiency
Operational reliability
Market readiness
Regulatory readiness
Technological maturity
Infrastructure compatibility
0
1
2
3
4
5
6
Ammonia
Biofuels
Dimethyl Ether
LPG (Propane)
Methanol
Natural gas (LNG/CNG)
SAF
Synthetic fuels
0
1
2
3
4
5
6
Environmental performance efficiency
Market readiness
Cost-effectiveness
Operational reliability
Regulatory readiness
Technological maturity
Performance efficiency
Infrastructure compatibility
Ammonia
Biofuels
Dimethyl Ether
LPG (Propane)
Methanol
Natural gas (LNG/CNG)
SAF
Synthetic fuels
0
1
2
3
4
5
6
Environmental performance efficiency
Market readiness
Cost-effectiveness
Operational reliability
Regulatory readiness
Technological maturity
Performance efficiency
Infrastructure compatibility
Lorem ipsum lorem ipsum lorem ipsum
Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Maecenas porttitor congue massa. Fusce posuere, magna sed pulvinar ultricies, purus lectus malesuada libero, sit amet commodo magna eros quis urna.
Natural gas (LNG/CNG)
Maritime & Shipping
Consideration
Click to toggle each field on and off
Further detail
0
1
2
3
4
5
6
Environmental performance efficiency
Market readiness
Cost-effectiveness
Operational reliability
Regulatory readiness
Technological maturity
Performance efficiency
Infrastructure compatibility
Maritime & shipping
Natural gas (LNG/CNG)
Toggle
Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Maecenas porttitor congue massa. Fusce posuere, magna sed pulvinar ultricies.
More detail
0
1
2
3
4
5
6
Environmental performance efficiency
Market readiness
Cost-effectiveness
Operational reliability
Regulatory readiness
Technological maturity
Performance efficiency
Infrastructure compatibility
Lorem ipsum lorem ipsum lorem ipsum
Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Maecenas porttitor congue massa. Fusce posuere, magna sed pulvinar ultricies, purus lectus malesuada libero, sit amet commodo magna eros quis urna.
Maritime & Shipping
The barriers to scaling renewables
Emerging markets
Planning and permitting
Investment in grid infrastructure
Critical raw minerals
Supply chain issues
Market structures
Accelerating storage solutions
Access to capital
Nature and biodiversity
Social license to operate (SLO)
Which relate to specific investment risks for such markets including currency, land ownership, policy certainty and a range of other factors.
Emerging
markets
Learn more
How to use
Including the capacity and skills needed to build out renewables faster, and the risks around mineral extraction, processing, and transportation.
Learn more
Supply chain
issues
That support low
carbon flexibility.
Learn more
Market
structures
Solutions that support renewable energy storage and on-demand usage. These require advanced technologies such as energy storage systems, smart grid infrastructure and demand-side management systems.
Learn more
Accelerating storage solutions
Where the combination of high interest rates and various other risks have slowed down availability of new investment capital.
Learn more
Access
to capital
Where the wider community and other social issues need to be considered in the context of any renewable development project.
Learn more
Social license
to operate (SLO)
While nature and biodiversity depend on a rapid expansion of renewables to limit temperature increases, we must acknowledge the potential negative impacts of renewable development and take steps to
alleviate or avoid them.
Learn more
Nature and
biodiversity
Delays timely implementation
of renewable projects.
Learn more
Planning and
permitting
That supports the integration of renewable energy sources and a higher resilience of the power grid.
Learn more
Investment in grid infrastructure
For renewable energy technology whose availability is subject to geological, geopolitical, and governance challenges.
Learn more
Critical
raw materials
Icon squares
are your key to interactivity; click them, throughout, to learn more.
Emerging markets
Which relate to specific investment risks for such markets including currency, land ownership, policy certainty and a range of other factors.
Insights
Recommendations
Download the report
Seven steps will play a critical role
Stakeholders can follow a seven step action plan to capitalize on the vast opportunity in emerging markets.
While the energy transition in developed economies describes a shift from fossil fuels to renewables, the ideal transition in many emerging economies is from little or no access to any energy whatsoever to the many economic, health, and educational benefits that flow from reliable supplies of clean energy.
01
02
03
04
05
06
07
Laser focused reforms, including regulatory, tax and public awareness.
01
Africa
Africa’s ample and consistent sunshine means:
of the world’s best solar resources, according to the IEA.
Despite that potential, the continent only has around one percent of global installed solar capacity.
It has
60%
of renewable energy industry stakeholders surveyed cite emerging market risks as a moderately significant barrier to scaling renewables.
48%
Download the full report below to learn more.
02
03
04
05
06
07
Facilitate increased private finance.
02
Leverage local partners to navigate uncertainty.
03
Enhance the roles of Multilateral Development Banks (MDBs).
04
Create a clear vision and supportive policies.
05
Develop a strategy to manage stranded assets.
06
Embrace the goal of shared prosperity.
07
03
04
05
06
07
01
01
04
05
06
07
02
01
02
05
06
07
03
01
02
03
06
07
04
01
02
03
04
07
05
01
02
03
04
05
06
According to the IEA, for example:
40
African countries currently have renewable targets in their Paris Agreement Nationally Determined Contributions (NDCs).
have a stated policy to reach universal electrification.
25
But only
Source: International Energy Agency (IEA),
“Africa Energy Outlook 2022,” 2022
Source: International Energy Agency (IEA), “Africa Energy Outlook 2022,” 2022
Emerging markets
Which relate to specific investment risks for such markets including currency, land ownership, policy certainty and a range of other factors.
Insights
Recommendations
Download the report
Seven steps will play a critical role
Stakeholders can follow a seven step action plan to capitalize on the vast opportunity in emerging markets.
While the energy transition in developed economies describes a shift from fossil fuels to renewables, the ideal transition in many emerging economies is from little or no access to any energy whatsoever to the many economic, health, and educational benefits that flow from reliable supplies of clean energy.
01
02
03
04
05
06
07
Laser focused reforms, including regulatory, tax and public awareness.
01
Africa
Africa’s ample and consistent sunshine means:
of the world’s best solar resources, according to the IEA.
Despite that potential, the continent only has around one percent of installed solar capacity.
It has
60%
of renewable energy stakeholders surveyed cite emerging market risks as a highly significant barrier to scaling renewables.
48%
Download the full report below to learn more.
02
03
04
05
06
07
Facilitate increased private finance.
02
Leverage local partners to navigate uncertainty.
03
Enhance the roles of multilateral development banks.
04
Create a clear vision and supportive policies.
05
Develop a strategy to manage stranded assets.
06
Embrace the goal of shared prosperity.
07
03
04
05
06
07
01
01
04
05
06
07
02
01
02
05
06
07
03
01
02
03
06
07
04
01
02
03
04
07
05
01
02
03
04
05
06
According to the IEA, for example:
40
African countries currently have renewable targets in their Paris Agreement Nationally Determined Contributions (NDCs).
have a stated policy to reach universal electrification.
25
But only
Critical raw minerals
For renewable energy technology whose availability is subject to geological, geopolitical, and governance challenges.
Available quantities of raw materials and the capacity of mining companies to extract them are not the only challenges. Geopolitical and supply chain issues are also prevalent.
Australia
All hold dominant positions in mining materials like lithium, copper, graphite, nickel, platinum, iridium, and rare earth minerals.
Download the report
Recommendations
Insights
Our recommendations include:
Beyond innovations and improvements in mining operations to increase production, other solutions can help ensure that the energy transition has the raw materials it requires – but a more sustainable approach is needed.
Download the full report below to learn more.
Invest in everything.
05
Take advantage of existing circular economy frameworks and resources.
04
Design products to last longer and be recycled and reused.
03
Develop supply chains and business models a circular economy needs.
02
Invest in circular economy and new production.
01
Chile
China
The Democratic Republic of Congo
South Africa
Tripling the scale of renewable deployments depends on the success of one of the globe’s most extractive industries:
of renewable energy stakeholders surveyed agree that current market challenges are causing substantial delays and, in some cases, abandonment of renewable energy projects.
84%
mining
