Port of Rotterdam handles 500,000th import container via Secure Chain
NewsThe Port of Rotterdam has processed its 500,000th import container through the Secure Chain system.
Action needed to meet sustainable fuel demand in Green Shipping Corridor
The Rotterdam-Singapore Green and Digital Shipping Corridor partners are advocating for urgent measures to satisfy the rising demand for sustainable fuels along the corridor.
The Rotterdam-Singapore Green and Digital Shipping Corridor partners are calling for action to meet the growing demand for sustainable fuels along the corridor. The corridor, aiming to reduce GHG emissions from large container vessels by at least 20% by 2030, is supported by 26 partners operating over 90 ships including CMA CGM, Maersk, Mediterranean Shipping Company (MSC), Ocean Network Express (ONE) and Hapag-Lloyd. The partners have set sights on a 20% share of sustainable fuels in 2030 to achieve IMO’s strengthened ambition to reduce GHG emissions by 20%, striving for 30% in 2030.
In 2028 GC partners are expected to have over 200 vessels capable of sailing on sustainable fuels, for now being methane and methanol, with ammonia and hydrogen expected to follow.
“Both ammonia & hydrogen are not in the container vessel order books of our partners as the application of the fuel and engine technology needs to be matured. The corridor remains committed to supporting these fuel pathways for international shipping. The focus in the upcoming years is on technology advancement, testing and implementation,” Port of Rotterdam, MPA Singapore and Global Maritime Forum said in a report on behalf of the corridor.
This translates into a total potential demand of over 2.5 million per annum for both fuels. However, the challenge remains in addressing the “chicken-and-egg” problem of fuel supply and demand. The affordability and availability of sustainable fuels pose major hurdles. Prices of bio- and e-fuels are two to three times higher than traditional fossil fuels, making it difficult for shipping companies to commit to long-term contracts, which, in turn, stifles investment in fuel production.
The partners said that international bodies like the European Union and the International Maritime Organisation could help spur sustainable fuel production through marketplace mechanisms similar to the European Hydrogen Bank but tailored for shipping. The Port of Rotterdam and Singapore’s Maritime and Port Authority are also working to provide a clear safety and operational framework to increase the uptake of these fuels at port.
Need for coordinated effort
The ports believe that in order for sustainable shipping to thrive, a coordinated effort is needed to balance fuel supply and demand, with supportive policies and mechanisms driving affordability and availability.
“We need to create the conditions to overcome the chicken-and-egg problem and get long-term sustainable fuel offtake agreements and projects reaching FID. A solution is to create an accessible marketplace that can aggregate and connect supply and demand that includes means to bridge the cost gap. The structure would arrange competitive matchmaking and address both the demand and the supply considerations and timelines, which requires support from the private and public sector,” the partners said.
“Green Corridor calls for timely and dedicated support to scale up sustainable fuel production capacity for shipping in a timely manner, while continuing the joint efforts on improving the availability, affordability and acceptability of sustainable fuels.”
Therefore, support is required for ringfenced funds (financial resources that are allocated for a specific purpose) and an operational expenditure (OPEX) subsidy for maritime shipping from public funds to enable physical pilots that establish safety, operational, and certification standards. Additionally, public support and collaboration across the value chain are needed to identify, develop, and mobilise commercial structures and funding options for the early commercialisation of sustainable fuels.
The Green Corridor partners insist that ambitious regulatory regimes should be introduced to create a level playing field and offer a long-term perspective for the industry. Finally, the corridor must leverage knowledge and learnings from these initiatives to drive wider decarbonisation efforts across maritime shipping.
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