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New Energy World magazine logo
New Energy World magazine logo
ISSN 2753-7757 (Online)

Maritime decarbonisation: ports and green shipping corridors

19/6/2024

5 min read

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Head and shoulders photo of Director of the Port Authority of Huelva, gnacio Alvarez-Ossorio Photo: Port of Huelva
Director of Puerto de Huelva, Ignacio Alvarez-Ossorio

Photo: Port of Huelva

The Port of Huelva is assisting in the development of both alternative maritime fuels and green shipping corridors, thanks to its geographical position in the southern part of Spain. Director of the Port Authority of Huelva, Ignacio Álvarez-Ossorio Ramos, explains.

Ports have a relevant role in the decarbonisation of the economy. As points of intersection between land and sea in import and export logistics flows, they can become catalysts for change in a multitude of sectors, aiding the transition to clean energy.

 

Up to now ports have guaranteed the supply of conventional fuels, balancing global flows of supply and demand in different geographical areas across different maritime routes. But we are starting a transition to new fuels.

 

The Paris Climate Accord committed the world to limit global warming to well below 2°C and ideally to 1.5°C. The energy transition in ports is on track, putting a 1.5°C pathway within reach. Initiatives including the Clydebank Declaration for Green Shipping Corridors, signed by 22 governments, are supporting breakthrough technology deployments through demand-side commitments from different stakeholders.

 

Trans-national coalitions between different players will be needed, to act together and demonstrate that maritime decarbonisation is possible, while emphasising new business opportunities and socio-economic benefits for communities across the globe.

 

For example, the new green strategy of the International Maritime Organization (IMO) will change the business model of the shipping industry and, therefore, the ports. The IMO has taken a step forward in accelerating its strategy, reducing the emissions of greenhouse gases, and it has proposed that the maritime industry will reach zero carbon emissions in 2050.

 

The revised IMO strategy also stipulates by 2030 the introduction of technologies, new fuels bunkering and consumption of alternative energy sources, with the objective of reaching 10% of new fuels implementation by international maritime transport.

 

The price gap between sustainable shipping fuels and conventional fossil fuels is expected to narrow and could achieve cost parity as early as 2035 with the help of decisive policy actions.

 

Hydrogen and related fuels
Port areas are the perfect scenario for implementation of such initiatives. Port ecosystems are already playing a crucial role in the expansion of the hydrogen market. First, as energy transit hubs they facilitate the import of hydrogen and its carriers and its distribution. And second, they act as investors in dedicated infrastructure to produce, import, store and distribute new clean fuels to multiple end-users in the wider port areas and/or the hinterland.

 

Although the implementation of hydrogen as a maritime fuel at a large scale is still under development, green hydrogen-based new fuels will continue to mature. Ammonia, methanol, biofuels and other hydrogen carriers are being pursued as cleaner fuels to drive shipping’s decarbonisation.

 

Industry collaboration in port areas, together with individual operator actions, must coalesce to scale the production of these fuels. And so, ports will continue offering a guarantee of supply of new alternative fuels. Import and export flows will be redesigned. Ports will maintain their role of strategic energetic reserves, and costs compared to existing marine fuels will become aligned.

 

However, compared with traditional fuels, the energy densities of methanol and ammonia are lower than those for conventional marine fuels already in use. Work is being done to redesign both ships and routes, from short-sea maritime transport to deepsea shipping, to take best advantage of each kind of new fuel. Bunkering areas for new fuels will need to be redesigned to cover the coming demand.

 

The price gap between sustainable shipping fuels and conventional fossil fuels is expected to narrow and could achieve cost parity as early as 2035 with the help of decisive policy actions.

 

Green shipping corridors gain momentum
The establishment of partnerships between maritime business stakeholders will accelerate the decarbonisation of the shipping sector and its fuel supply through ‘green shipping corridor’ projects, with the participation of ports, industrial companies, port terminal operators and others along the value chain of new fuels. Potential barriers to the formation of green shipping corridors, such as regulatory frameworks, incentives, information sharing or infrastructure, and business tools, will have to be overcome.

 

Indeed, working to develop green shipping corridors must be considered in the development of National Action Plans, with the support of ports and their port communities.

 

The position of Port of Huelva
The recent Green Hydrogen Congress held in Huelva (7–9 February 2024), and the announcement of investment in projects such as the Andalusian Hydrogen Valley, has served to underline the crucial role of this energy vector in energy transition scenarios. Huelva is working as part of the proposed Andalusian Hydrogen Valley project, which might also be able to manufacture and supply other new fuels (including biofuels, bioLNG, ammonia and methanol, among other new fuels).

 

The Port of Huelva is a modern and competitive industrial port complex, with more than 1,700 ha, in a strategic location, very close to the Strait of Gibraltar, in the ‘around the world’ line of goods transport, and on the North-South (Europe-Africa and Europe-America) and passenger axes, with its connection to the Canary Islands.

 

The Port is already working to strengthen a maritime decarbonisation strategy that demands a change from an energy system based on fossil energy to a circular economy.

 

The Port of Huelva is a strategic port for vessels doing the Amsterdam-Rotterdam-Antwerp petroleum trading hub (ARA)-Suez maritime traffic route. Huelva has increased its supply capacity with a new barge currently able to supply both very low sulphur fuel oil (VLSFO) and marine gas oil (MGO), plus biofuels and LNG. And, in the future, stocks will include methanol and ammonia, among other new marine fuels.

 

The views and opinions expressed in this article are strictly those of the author only and are not necessarily given or endorsed by or on behalf of the Energy Institute.