The Maritime and Port Authority of Singapore (MPA), Port of Los Angeles and Port of Long Beach on Thursday (18 April) said they have completed a comprehensive baselining study, one year after the signing of the Memorandum of Understanding (MoU) to establish a Green and Digital Shipping Corridor (GDSC).
It forecasts more green jobs, health improvements for local communities and economic benefits for participating countries, emphasising the future demand for zero and near-zero emission fuels and the benefits from decarbonising the shipping routes between the nations.
Key findings of the study include:
- Vessels operating on the corridor represent 7% of the world’s container trade, which is about 1% of Singapore’s, 14.5% of Port of Long Beach’s, and 20% of Port of Los Angeles’ traffic.
- The projected annual energy demand of vessels on the corridor is estimated to be approximately 60,000 terajoules (TJ), equivalent to approximately two months of Singapore’s national electricity generation.
- Shipping demand on the corridor is estimated to be around 850,000 metric tonnes (mt) of methanol and 160,000 mt of ammonia annually by 2030, displacing the equivalent GHG emissions from almost 320,000 cars annually.
- The transition to zero and near-zero emission fuels could potentially create approximately 700 jobs in the production and supply chain of such fuels by 2030.
The study, commissioned by C40 and the ports, and conducted by the American Bureau of Shipping, analysed maritime trade flows between Singapore, Los Angeles and Long Beach, and provided a baseline of activities and energy demand requirements for vessels operating on the corridor through to 2050.
The conclusion of the study follows the successful unveiling of the corridor’s Partnership Strategy at the 28th United Nations Climate Change Conference (COP28/CMP18/CMA5) in December 2023, which outlined the corridor’s goals, partnership structure and governance mechanism.
The study estimates the quantity of near-zero and zero-emission fuels required for this traffic by modelling the adoption of zero and near-zero carbon alternative fuels by vessels operating on the corridor through to 2050, considering various parameters such as fuel production costs and fuel availability, and in view of the targets in the 2023 IMO Strategy on Reduction of Greenhouse Gas Emissions from Ships.
The partnership convened the first in-person stakeholder meeting of the corridor together with industry value-chain representatives, as a prelude to onboarding stakeholders to the corridor. The meeting was held during Singapore Maritime Week (SMW) 2024 on 18 April.
The meeting and subsequent working groups will focus on developing green and digital solutions to address the following focus areas within the corridor:
- Enable the supply and adoption of zero and near-zero emissions fuels (e.g. green ammonia, green methanol) at scale, including safety, emergency response, mitigation and standards-setting.
- Develop and scale-up the adoption of energy efficiency solutions, including through digital tools (e.g. route optimisation, remote monitoring) and technologies that reduce fuel consumption (e.g. wind-assisted propulsion).
- Develop and encourage the adoption of digital technologies to support the monitoring, reporting and verification of GHG emissions along the corridor.
All three ports will participate in the Accelerating Digitalisation and Decarbonisation Conference organised by MPA as part of SMW 2024 and in a moderated discussion convened by C40 on the sidelines of SMW 2024 entitled ‘Navigating Collaboration: Governance of Green Shipping Corridor Partnerships’, where C40 will unveil its new report and share insights into best practices for GDSC effective governance.
Mr Teo Eng Dih, Chief Executive of MPA, said: “Shipping is a new pillar in the multi-faceted partnership with the US. The GDSC with the Ports of Los Angeles and Long Beach highlights the importance of working with industry, researchers, government and society through innovation and capacity building. With traffic along the GDSC accounting for 7% of the world’s container trade, the initiatives by GDSC partners and stakeholders will help generate growth and new opportunities for maritime professionals.”
Note: The study titled An Initial Baselining Study to Support the Development of the Los Angeles/ Long Beach to Singapore Green and Digital Shipping Corridor can be found here.
Related: SMW 2023: Singapore, LA and Long Beach ink MoU to establish green and digital shipping corridor
Related: Singapore, LA and Long Beach unveil Partnership Strategy for Pacific Ocean green and digital shipping corridor
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Photo credit: Maritime and Port Authority of Singapore
Published: 18 April 2024