World Economic Forum’s First Suppliers Hub leading the way to maritime net zero

According to the International Maritime Organization (IMO), shipping now produces more than a billion tonnes of greenhouse gas emissions (GHGs) every year.

Traditional shipping fuel is made up of heavy oils, commonly known as bunker fuel. When burned these fuels cause high levels of pollutants including harmful particulates and sulphur dioxide. Ship fuels contain around 2,000 times as much sulphur as diesel fuel used in cars.

A new generation of shipping fuels is being developed to accelerate the decarbonisation of the shipping sector: green hydrogen and its derivatives, e-ethanol and e-ammonia, are emerging as cornerstone solutions for maritime decarbonisation. These fuels align with the IMO’s progress towards a set of binding global regulations for the industry, with a goal of net-zero shipping by, or around 2050.

When hydrogen is produced through electrolysis powered by renewable energy, it can be synthesised into green fuels like e-methanol and e-ammonia.

Early adopters in the industry are moving quickly. For example, Copenhagen Infrastructure Partners has secured a 126,000-hectare plot in Western Australia to build a large-scale renewable energy project – the Murchison project. Once operational, the project will utilise combined onshore wind and solar energy to produce green ammonia.

The plant could reduce annual CO2 emissions by 4.4 million tonnes, the company says. This shift toward green fuels is creating opportunities for countries with abundant renewable energy resources.

Phelan Green Energy in South Africa and Hyphen Hydrogen Energy in Namibia are developing facilities to produce e-ammonia at scale. Hyphen’s plant will be one of the largest and most advanced green hydrogen plants in the world.

Investment in the plant has topped $10 billion, which is equivalent to Namibia’s annual GDP. It is claimed that the fuel it produces will offset five to six million tonnes of carbon dioxide emissions each year.

These innovators are members of the World Economic Forum’s First Suppliers Hub, part of the First Movers Coalition. The First Suppliers Hub is a carefully curated repository of decarbonisation projects that meet stringent emissions-reduction criteria. However, scaling hydrogen-based fuel technologies involves complex market dynamics. Success requires coordinated action from an ecosystem of suppliers, buyers, financiers and policymakers.

Which is where the First Suppliers Hub comes in. The organisation identifies promising decarbonisation projects and convenes key stakeholders to overcome deployment challenges.

Alexandra Herdman, Logistics UK’s Senior Policy Manager said: “The route to maritime decarbonisation will need international co-operation and collaboration. Shipping movements between ports across the world means technology and fuels will need to be aligned and available for vessels to refuel. These initiatives to create green fuels are an important step in accelerating the availability and use of new fuels.

“Logistics UK is calling for certainty over the future for maritime decarbonisation and a roadmap of how shore power can be achieved at all UK ports. We also want to see additional support from government for research and development to decarbonise port, maritime and inland waterway operations. These actions will give the industry the confidence to invest in new technologies and speed up maritime decarbonisation.”