The International Association of Ports & Harbors (IAPH) on Friday (21 July) said the Clean Energy Ministerial (CEM) has adopted the Clean Energy Marine Hubs initiative (CEM-Hubs) at a global energy summit in Goa, India. 

IAPH said the first-of-its-kind platform brings together the private sector and governments across the energy-maritime value chain to transform maritime transportation and production hubs for future low-carbon marine fuels.

The CEM-Hubs initiative is initially backed by Canada, Norway, Panama, Uruguay and the United Arab Emirates (UAE) in partnership with the International Chamber of Shipping (ICS), and the International Association of Ports & Harbors (IAPH). The CEM Hubs initiative is a partnership that’s jointly led by private sector and governments working in close collaboration.

The energy maritime value chain is far from ready to transport the influx of low-carbon fuels that are expected between now and 2050. To accommodate demand, the shipping industry is expected to transport at least 50% of all traded low carbon fuels by 2050, according to the International Renewable Energy Agency (IRENA). But the production centres, vessels and port infrastructure required to accommodate expected demand do not currently exist at commercial scale.

So far only one ship in the whole global fleet has been piloted to transport liquefied hydrogen – travelling from Australia to Japan. For hydrogen derivates such as ammonia and other low-carbon fuels moved by ships, the scale is far from what heavy industries, transport, and other sectors would require. 

To support the global transition to net-zero targets, shipping is expected to transport between two and up to five times the low-carbon fuels it will consume by 2050. The mix of fuels that shipping moves will also need to change to be aligned to the Paris Agreement.

Participants have convened in Goa for the first ever CEM-Hub meeting. The initiative was adopted less than a year after it was first presented, in an unprecedented move by the Clean Energy Ministerial (CEM) that reflects the immense scale of the problem and urgency to establish solutions. The CEM-Hubs initiative and progress will be featured at the next COP28 in Dubai.

The initiative is also supported by the International Renewable Energy Agency (IRENA) and the Global Centre for Maritime Decarbonisation (GCMD).

Jean-François Gagné, Head of Secretariat, Clean Energy Ministerial, said: “Ports, shipping, and the logistics network need to be an integral part of the global clean energy transition. The Clean Energy Marine Hubs Initiative is a truly public-private platform between energy, maritime, shipping and finance communities. It represents a unique opportunity to develop concrete implementable actions to ensure greener supply chains globally.”

Patrick Verhoeven, IAPH Managing Director, commented: “It will be the role of shipping and the ports that serve them to become the enablers of the energy transition by offering the capacity to transport what is expected to be 50% of all global zero-carbon fuels. For candidate countries this presents a golden opportunity to develop the hub concept as catalysts of economic growth and prosperity for their citizens.”

Professor Lynn Loo, CEO of Global Centre for Maritime Decarbonisation, commented: “According to IRENA, at least half of net-zero fuels needed in 2050 are expected to be moved by ships. This speaks to shipping’s critical and integral role at the energy-transport nexus. To decarbonise the energy value chain, it is thus imperative for shipping to be at the table, alongside fuel producers, demand drivers, regulators and policy makers so gaps can be identified early and addressed holistically.”

Photo credit: International Chamber of Shipping/ IAPH
Published: 24 July, 2023