Connect with us

Alternative Fuels

World Economic Forum: Mexico ‘ideally placed’ to become zero-carbon shipping fuels hub

Abundant supply of renewables means Mexico has the capacity to produce zero- carbon for local supply and export, says recently published report.
Admin

Published

4 years ago

on

Mexico ideally placed to become a zero carbon shipping fuels hub

The World Economic Forum on Monday (7 February) published a report stating that Mexico holds great potential for a robust zero-carbon shipping fuels sector.

The country’s abundant supply of renewables means it has the capacity to produce zero- carbon for local supply and export, which will in turn fast-track its transition to a low-carbon economy and provide new green jobs.

With the International Maritime Organization calling for a 50% decrease in international shipping emissions by 2050 compared to 2008 rates, stakeholders across the maritime value chain are committed to commercializing and scaling zero-carbon vessels and fuels by 2030.

According to a study conducted by Ricardo and the Environmental Defense Fund for the P4G-Getting to Zero Coalition Partnership, which also includes the World Economic Forum, Mexico has the potential to play a key role in transforming global shipping through green hydrogen-derived fuels and clean electricity.

The report takes Mexico as its primary focus to understand the potential for adopting zero-carbon fuels through the local shipping and energy landscape. The report is published as part of a wider series of studies exploring opportunities for zero-carbon shipping fuels in emerging economies like Indonesia, South Africa and Mexico.

Between two oceans

Mexico’s proximity to important trading partners on the North American coastline along both the Pacific and Atlantic Oceans eases access to Asian, European and African markets. This could position the country as a leading supplier for vessels that visit its ports, as well as a leading exporter of clean fuels.

“Our study has found that Mexico’s access to busy shipping routes and abundant renewable energy potential puts it in a good position to help drive the zero-carbon fuel market. Mexico can potentially supply both its domestic electrical demand as well as the production of zero-carbon fuels to supply commercial vessels bunkering in its ports by use of renewable energy,” says Olivia Carpenter-Lomax, Future Energy Specialist and Project Lead, Ricardo.

“The many international vessels bunkering in Mexican ports need to be able to refuel along their journey,” Ingrid Sidenvall Jegou, Project Director, Global Maritime Forum, also points out.

The study presents case studies on three major ports along the coast of Mexico to highlight avenues for reaching local decarbonization targets, opportunities for diversification of port activities, and the potential for trade in zero-carbon fuels.

  • Manzanillo: The busiest port in Mexico and a significant point for imports and exports. It has a high renewable potential and could be a major export hub for locally produced electrofuels.
  • Cozumel: A major tourist attraction with dense marine traffic. Supporting local production and uptake of electrofuels can aid the transition to low carbon vessels while protecting biodiversity.
  • Coatzacoalcos: A key centre for oil logistics in Mexico. Coatzacoalcos holds significant resources to support renewable energy and the production of electrofuels as Mexico works to phase out fossil fuels.

The renewables opportunity

Mexico has rich renewable energy potential: the country has set targets for a minimum decrease of 22% in greenhouse gas emissions by 2030 and 50% by 2050, compared to the year 2000. Decarbonizing the local shipping sector through the exploration of green fuels like hydrogen and ammonia is one way for it to reach this goal.

“The study has identified hydrogen and ammonia as the most suitable options for large commercial vessels such as tankers, containers and bulk carriers, while small vessels such as port service vessels can be supplied through electrification. The renewable energy potential along with the advantageous locations of ports gives Mexico the opportunity to play a crucial role in driving the zero-carbon shipping fuel transition,” says Dr. Santiago Suarez de la Fuente, Lecturer in Energy and Transport, UCL Energy Institute.

Mexicos predicted energy mix for 2030

The benefits of adopting zero-carbon fuels go beyond facilitating shipping decarbonization. With the exploration of low-carbon fuel production, Mexico could see an increase in green job creation and subsequently a need for reskilling the workforce. Furthermore, the transition could support decarbonization in other hard-to-abate sectors and put Mexico in the position to be a major exporter of green commodities, supporting global demand for low carbon products.

“Mexico may benefit in various ways from carrying a zero-carbon shipping fuels sector. Apart from ensuring that the country reaches its wider decarbonization goals, locally deployed renewables can also create energy security and help catalyze the low carbon economy in Mexico by supporting decarbonization of other sectors, creating a wide range of jobs,” states Pedro Gomez, Head of Shaping the Future of Mobility, Member of the Executive Committee, World Economic Forum.

How does Mexico reach its green potential?

Handling zero-carbon fuels is not without its risks. The study outlines the importance of regulations and best practices to support the safe roll-out of these clean energy sources. The IMO’s International Code of Safety for Ships using Gases is a key example of standards and guidelines that encourage safe practices for transportation, storage and use of fuels like green hydrogen and ammonia. As the adoption of clean fuels increases and pilot projects are put in place, industry and policy-makers will identify additional pathways to mitigate associated risks.

There is also is a growing need for investment in renewable electricity, clean fuels and their supporting infrastructure to meet future demand. At the moment, there is an investment potential of 130-188 billion Mexican pesos for infrastructure to enable a 5% adoption of zero-carbon vessel technologies by 2030, the minimum rate of adoption determined to enable alignment with Paris Agreement targets.

Attracting foreign and private investment would require regular demand from the global shipping sector and a supportive political landscape. As actors within the shipping value chain support Mexican policy-makers and demonstrate that shipping decarbonization is feasible, Mexico’s potential to supply zero-emission fuels could give way to real growth and business opportunity.

In summary, Mexico’s outstanding renewable energy potential, geographical proximity to key shipping routes and strong trade agreements could catalyze shipping decarbonization through scaling zero-carbon fuel bunkering and expanding exports in hydrogen fuels. This would have a long-lasting impact on the local economy as green jobs are created and local supply chains are strengthened.

“The shift towards zero-carbon shipping needs to accelerate within the next decade and effective regulation will also create opportunities for countries to catalyze and benefit from this necessary transition. By moving early, Mexico can become a central actor in supplying the global demand for green fuel and a pioneer within zero-carbon shipping fuel production,” says Panos Spiliotis, Global Climate Shipping Manager, Environmental Defense Fund.

 

Source: World Economic Forum
Photo credit: Jorge Aguilar on Unsplash
Published: 10 February, 2022

 

 

Related Topics:
Continue Reading

Methanol

China launches methanol shipping supply chain alliance to accelerate green transition

Marine fuel suppliers in the alliance include Sinopec Fuel Oil Sales, China Marine Bunker (PetroChina), SIPG Energy (Shanghai), and Shenzhen Port Energy Development.
Admin

Published

3 days ago

on

July 17, 2026

By

China Flag

China Waterborne Transport Research Institute under the Ministry of Transport and China Transport News recently jointly launched a Methanol Fuel Shipping Supply Chain Innovation Alliance with 20 organisations spanning the shipping, port, energy, equipment, research and industry association sectors.

The alliance was officially announced during the main event of China Maritime Day 2026 on 11 July, where members also released a joint initiative to develop a collaborative methanol-fuelled shipping supply chain.

The alliance aims to implement China’s national strategy for green economic transformation and support the Ministry of Transport’s “One Network, Four Modernisations” initiative by building a safe, efficient, economical and reliable methanol marine fuel supply chain

Under the joint initiative, alliance members pledged to align with China’s national decarbonisation strategy by promoting methanol as a key pathway for the shipping sector’s green transition and optimising the industry’s energy mix.

The members also pledged to strengthen collaboration across the supply chain to improve coordination between bunker fuel production, transportation and end users while advancing technological innovation.

Lastly, the alliance will support the development of policies, planning and technical standards, promote resource sharing and joint research, and accelerate the large-scale adoption of methanol as a marine fuel.

The alliance brings together companies and organisations representing the entire methanol shipping supply chain.

Members include shipping and port members such as China Changjiang National Shipping (Group) Corporation, COSCO Shipping Bulk Co., Ltd., Shandong Port Group, and Wuhan Chuangxin Jianghai Shipping Co., Ltd.

Energy companies in the alliance include Sinopec Chemical Commercial Holding Company Limited and Methanex Corporation.

Marine fuel suppliers including Sinopec Fuel Oil Sales, China Marine Bunker (PetroChina), SIPG Energy (Shanghai) Co Ltd and Shenzhen Port Energy Development Co Ltd are also part of the alliance. 

Equipment manufacturers in the alliance are CSSC 711th Research Institute, CSSC Power (Group) Corporation Ltd and Chongqing Hongjiang Machinery Co Ltd.

Research, media and industry organisations participating in the alliance include the China Waterborne Transport Research Institute, China Transport News, and the Methanol Institute.

The Methanol Institute said methanol is moving beyond individual projects towards coordinated action across the entire value chain. 

“And China continues to play a leading role in advancing methanol as a marine fuel,” it said in a social media post.  

“We’re proud to work alongside our fellow alliance members to help strengthen the methanol supply chain and support the continued growth of methanol as a marine fuel.”

 

Photo credit: David Yu from Pixabay
Published: 17 July, 2026

Continue Reading

Alternative Fuels

KR, HD Hyundai tap first ammonia dual-fuel sea trial to develop vessel operating standards

Trial generated data on the vessel’s fuel supply system and engine, which will provide a technical foundation for KR’s future development of domestic guidelines for ammonia-fuelled ships.

Admin

Published

3 days ago

on

July 17, 2026

By

KR, HD Hyundai tap first ammonia dual-fuel sea trial to develop vessel operating standards

Korean Register (KR) on Tuesday (14 July) said it is collaborating with HD Hyundai Heavy Industries (HHI) to establish a domestic operating environment for ammonia-fuelled vessels under the Ministry of Oceans and Fisheries’ Green Shipping Corridor Construction Support Project. 

The initiative supports the development of ammonia as one of the most promising next-generation marine fuels.

HHI recently conducted a sea trial of Korea’s first ammonia dual-fuel propulsion vessel. The trial generated operational data on the vessel’s fuel supply system and engine, which will provide a valuable technical foundation for KR’s future development of domestic guidelines for environmentally friendly vessel operations and supporting wider maritime decarbonisation efforts.

A spokesperson for HD Hyundai, said: “Drawing on our group’s R&D capabilities and on-site technical expertise, we have made meaningful progress in advancing the application of ammonia as a marine fuel. We expect this to help enhance a sustainable maritime ecosystem while strengthening the competitiveness of Korea’s shipbuilding industry.”

Kim Daeheon, Executive Vice President of KR’s R&D Division, added: “The close collaboration between KR and HD Hyundai has enabled us to build the technical foundation for introducing ammonia-fueled vessels in Korea. We will continue to drive national projects forward together with HD Hyundai and establish technical standards befitting the era of Green Shipping Corridors.”

 

Photo credit: HD Hyundai Heavy Industries
Published: 17 July, 2026

Continue Reading

Alternative Fuels

SEA-LNG: LNG, biomethane bunkering continue to grow despite geopolitical uncertainty

The industry coalition says LNG-fuelled vessels, LNG bunker vessels, and LNG bunkering volumes, as well as biomethane bunkering and production, all continue to grow in 2026.
Admin

Published

3 days ago

on

July 17, 2026

By

SEA-LNG: LNG, biomethane bunkering continue to grow despite geopolitical uncertainty

Industry coalition SEA-LNG on Thursday (16 July) published its 2026 Mid-Year Market Review. 

It provides a snapshot of the current market conditions facing the methane pathway, with particular focus on the growth of liquefied biomethane (LBM/bio-LNG). This report comes as SEA-LNG celebrates its tenth anniversary and gains provisional consultative status at the International Maritime Organization (IMO).

According to analysis of vessel orders from January to June 2026 from SEA-LNG member DNV, LNG dual-fuel orders remain robust at 73 vessels, accounting for almost 90% of the alternatively fuelled order book, when compared with ammonia, hydrogen and methanol. Additionally, there are now 67 LNG bunker vessels in operation, plus 42 more on order.

The LNG order book continues to be dominated by vessels serving liner trades especially container vessels and pure car and truck carriers (PCTCs). This is consistent with recent analysis by the World Shipping Council which shows that LNG remains the preferred fuel for container ship owners, accounting for 58% of total tonnage ordered versus conventional fuels at 36%.

There was also an increase in bunkering volumes and infrastructure. According to analysis by Kpler, global LNG bunker volumes were around 770,000 cubic meters (m3) per month in the period January to May 2026. This represents an increase of about 13% on the same period in 2025 as more LNG fuelled vessels have entered into operation together with favourable LNG and conventional fuel prices.

Liquefied biomethane is bunkered routinely today, and liquefied e-methane is in development. Since the introduction of regulations like FuelEU Maritime, LBM supply and demand have grown significantly. Data from the European Biogas Association show biomethane production capacity reached 8.2 bcm a year by the end of Q2 2026. This represents an additional 1 bcm in a single year, or growth of 17%. The number of operational biogas plants rose from 1,678 to 1,975 plants with €36 billion of allocated capital investment driving the sector.

Steve Esau, SEA-LNG COO, said: “Despite geopolitical and regulatory uncertainties in 2026, the industry is maintaining momentum on the methane decarbonisation pathway. This year’s mid-year review confirms that methane is the practical and realistic solution for shipping decarbonisation. 

“This is reflected in the growing numbers of LNG-fuelled vessels, LNG bunker vessels, and LNG bunkering volumes, as well as biomethane bunkering and production growth. As we look ahead, with e-methane also materialising, we are confident in the trajectory of the methane pathway to decarbonisation.”

SEA-LNG is active at the IMO and EU to underline the importance of goal-based and technology-neutral decarbonisation regulations, and ensure a global market for low and net zero fuels. As the methane pathway continues to mature, efforts have shifted from raising awareness to sharing members’ collective expertise on important technical details that will, for example, further reduce global well-to-wake emissions and scale up bio- and e-methane development and deployment.

As part of these efforts, last week SEA-LNG was granted provisional consultative status at the IMO. This status will enable SEA-LNG to engage directly with Members States as it advocates for practical and realistic regulations to help move the maritime industry forward.

Peter Keller, SEA-LNG Chairman, said: “I have been with SEA-LNG since we founded it 10 years ago, and what strikes me is how methane has ramped up from a pathway to a clear runway for shipping decarbonisation. When building the first LNG-powered containership, I didn’t imagine that within ten years over 10% of the global fleet by deadweight could be powered by methane. 

“What started as a solution to reduce harmful local emissions has cemented itself as the practical and realistic option for reducing greenhouse gas emissions today and into the future. As I look ahead, the fundamentals are strong, the orderbook is growing, the bunkering infrastructure is expanding at a record pace, and biomethane and e-methane are building on LNG’s foundation. Just as we expected.”

Note: SEA-LNG’s Methane Pathway – 2026 mid-year market review can be viewed here.

 

Photo credit: SEA-LNG
Published: 17 July, 2026

Continue Reading

Trending