Business

P4G: Study sights Mexico as ‘well positioned’ for green bunker fuels production

Country has an abundance of renewable energy potential along with direct access to busy shipping routes, according to Ricardo Research study.

Published

2 years ago

September 16, 2021

Admin

The P4G Getting to Zero Coalition Partnership on Wednesday (15 September) said Mexico is a well-placed country to build a valuable zero carbon shipping fuels sector, as it has an abundance of renewable energy potential along with direct access to busy shipping routes, according to a study headed by Ricardo Research.

The production of green hydrogen-derived shipping fuels could help Mexico meet its decarbonisation targets by catalysing renewable energy generation supply chains, skills, and economies of scale, which support the wider adoption of new technologies, it states.

Well-placed countries like Mexico will only reap the benefits if governments and the shipping industry coordinate efforts for effective climate regulation to expedite the provision of fuels and infrastructure.

The study explores the economic and environmental potential for the implementation of zero carbon shipping fuels through the shipping sector of Mexico.

“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 Head Ricardo.

The maritime shipping sector is on the threshold of a transition to zero emissions. Within the next decade, the shipping industry will start to replace traditional heavy bunker fuel with new zero carbon shipping fuels generated from renewable energy to meet its decarbonisation targets.

“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 attract investment of 7-9 billion USD by 2030,” comments Panos Spiliotis, Global Climate Shipping Manager, Environmental Defense Fund.

“The study emphasizes the potential that Mexico has in the production of zero carbon shipping fuel. Shipping’s future demand for zero carbon fuels will allow for increasing export and can provide a constant long-term revenue stream, which is an attractive feature for investment and can help Mexico reach its emission targets as well as create new green jobs,” says Alfredo Gonzalez, Head of the 2030 Agenda at the Economy Secretariat.

The report finds that the geographical location, economic status and strong trading relations put Mexico in a favorable position to help drive the zero carbon fuel market and supply a growing global demand.

“Mexico’s access to busy trading routes has made it a major trading hub. This makes Mexico an advantageous location to establish a zero carbon shipping sector, as the many international vessels bunkering in Mexican ports need to be able to refuel along their journey,” states Ingrid Sidenvall Jegou, Project Director, Global Maritime Forum.

The abundance of renewable energy resources in Mexico means that shipping fuels can be derived from renewable electricity generation. The study reveals that several zero carbon fuels have the potential to be used to decarbonize maritime shipping.

“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.

“From the study it becomes evident that 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 decarbonisation of other sectors, creating a wide range of jobs,” states Pedro Gomez, Head of Shaping the Future of Mobility, Member of the Executive Committee, The World Economic Forum.

For shipping to address its climate problem, it is crucial that governments and the global shipping sector coordinate efforts to ensure the availability of green fuels and infrastructure, and standards should be to encourage the zero-emission transition of both vessels and ports.

International vessels adopting zero carbon fuel bunkering must have the opportunity to refuel along their journey. By moving early, Mexico can set the trend for electro fuel adoption and position itself as an important hub along global zero carbon shipping routes.

“With the recent IPCC report, it is evident that urgent action is needed to bring down greenhouse gas emissions. The growing demand for zero emission shipping solutions provides opportunities for shipping nations like Mexico to take a leadership role in catalyzing change that can be replicated by countries.

“The transition to zero emission shipping fuels is not only critical for the shipping industry but will also have decarbonization effects across other sectors including food loss and waste and green hydrogen. These are the kinds of cross-sectoral solutions P4G champions and that are needed to reach a net zero future for all,” comments Ian de Cruz, Global Director, P4G.

The report highlights the Ports of Manzanillo, Cozumel and Coatzacoalcos as great examples of how different types of ports in Mexico could capitalize on a zero carbon transition. Apart from meeting decarbonisation targets, the transition would diversify current port activities and create a hub for the production and export of zero carbon fuels.

This study is part of the P4G Getting to Zero Coalition Partnership, spotlighting the potential of regional hubs to pioneer zero-carbon shipping fuel development in Mexico, South Africa, and Indonesia.

Photo credit: Jorge Aguilar from Unsplash
Published: 16 September, 2021

Shipping Corridor

Singapore, LA and Long Beach unveil Partnership Strategy for Pacific Ocean green and digital shipping corridor

Ports and C40 have commissioned a study to analyse trade flows and vessel traffic between the three locations as well as estimate quantity of near-zero/zero-emission bunker fuels required for this traffic.

Published

8 hours ago

December 7, 2023

Admin

Singapore, LA and Long Beach unveils Partnership Strategy for Pacific Ocean green and digital shipping corridor

The Maritime and Port Authority of Singapore (MPA), Port of Los Angeles (POLA) and Port of Long Beach (POLB) on Wednesday (6 December) unveiled a Partnership Strategy for a green and digital shipping corridor (GDSC) across the Pacific Ocean at the 28th United Nations Climate Change Conference.

The release of the Partnership Strategy follows the signing of a memorandum of understanding (MoU) by MPA, POLA and POLB during Singapore Maritime Week in April 2023. The MoU formalised the partnership, which is supported by C40 Cities, with the aim of establishing a GDSC connecting the three global hub ports.

The scope of cooperation through the Partnership Strategy and success indicators specified within build upon the MoU signed in April 2023 and reaffirm the corridor partners’ commitment to drive global action to digitalise and decarbonise the shipping industry and improve efficiencies.

The GDSC Strategy outlines steps to accelerate decarbonisation of the maritime shipping industry by enabling first mover organisations to achieve net-zero greenhouse gas emissions by the earliest feasible date, in support of the goals defined by the 2023 International Maritime Organization’s Strategy on Reduction of GHG Emissions from Ships. The ports and C40 will work together and with value-chain stakeholders from the fuel and maritime sectors to:

● Coordinate decarbonisation efforts: GDSC partners will help to catalyse and coordinate efforts to enable ships calling at the Port of Singapore, Port of Los Angeles and Port of Long Beach to achieve net-zero greenhouse gas emissions by the earliest feasible date.

● Build consensus on green shipping best practices: GDSC partners will seek to establish consensus around green shipping best practices and standards.

● Improve access to and adoption of technology and digital solutions: To enhance supply chain efficiency, resilience and decarbonisation while reducing costs and improving reliability, GDSC partners will work to develop and deploy innovative technology and digital solutions.

● Leverage networks: GDSC partners will work with stakeholders involved in other green shipping initiatives, including those established by the three ports and other parties, to scale the uptake of zero and near-zero emission technologies, fuels and energy sources.

To achieve these aims, a partnership structure and governance mechanism have been developed to provide clarity on the roles and responsibilities of GDSC partners. The strategy also outlines processes for onboarding new participants, financial management, confidentiality and decision-making.

As next steps, the ports and C40 have commissioned a study to analyse trade flows and vessel traffic between Singapore, Los Angeles and Long Beach. The study will estimate the quantity of near-zero and zero-emission fuels required for this traffic, and guide implementation by identifying opportunities for collaboration to advance the development of the GDSC.

The founding partners will now engage stakeholders from across the shipping and fuel supply value chains that share the GDSC's vision and aims, with the intention of onboarding new corridor participants in 2024.

Mr Teo Eng Dih, Chief Executive of MPA, said: “We are excited to see this partnership grow from strength to strength with the Green and Digital Shipping Corridor Partnership Strategy. We have embarked on evaluating the various digital solutions and zero and near-zero fuels options that could be trialled along the route between Singapore and the San Pedro Bay Port Complex. We look forward to the support of all the corridor stakeholders over the coming months to conduct trials and potentially scale them for wider adoption.”

"This Partnership Strategy document is the foundation upon which we'll build the future of maritime shipping,” Port of Los Angeles Executive Director Gene Seroka said. “Our success requires the resolve and dedication of the three partnering ports as well as our industry partners. Together, we will model the collaboration necessary to achieve our climate and efficiency goals."

“Over the last two decades, we've learned that collaboration between maritime industry partners is the key to making meaningful progress in reducing emissions and cleaning the air,”Port of Long Beach CEO Mario Cordero said. “This trans-Pacific green shipping corridor takes this concept global. The strategies we develop here can be used as a roadmap by a larger network of seaports and supply chain companies to invest in programs, technologies, software and infrastructure to decarbonize international trade everywhere.”

C40 Executive Director Mark Watts, said: "C40 is proud to support our port partners in delivering this Partnership Strategy. The advancement of this Green and Digital Shipping Corridor brings the shipping sector one step closer to a 1.5°C-aligned trajectory. Green shipping is only achievable through collaboration because no one stakeholder can afford to move unless they know others are likely to follow. That’s where C40 is delighted to help, bringing our network of world-leading cities, which include most of the world’s largest and most forward-looking ports."

Note: The Partnership Strategy document can be viewed here.

Photo credit: Maritime and Port Authority of Singapore
Published: 7 December, 2023

Business

Liberia-flagged bulker “Eleen Armonia” placed under Sheriff’s arrest

Ship was added to list of vessels under Sheriff’s arrest in Singapore’s court system and it is currently held at Eastern Bunkering Anchorage; arrest was made on behalf of Allen & Gledhill LLP.

Published

8 hours ago

December 7, 2023

Admin

Liberia-flagged bulk carrier Eleen Armonia was arrested in Singapore waters on Monday (4 December).

The 55,522 DWT vessel was added to the list of vessels under Sheriff’s arrest in Singapore’s court system.

According to the list, the vessel was arrested at 12.25pm and the arresting solicitor listed was law firm Allen & Gledhill LLP. The ship is currently held at the Eastern Bunkering Anchorage.

No details regarding the reason behind the arrest were provided in the list.

Photo credit: Manifold Times
Published: 7 December, 2023

Biofuel

PIL and DP World embark on biofuel bunkering trials at Jebel Ali Port

Both parties will collaborate on trial shipments between Jebel Ali Port in Dubai and destinations within PIL’s network in near term which will include shipments on PIL’s vessels powered by a biofuel blend.

Published

8 hours ago

December 7, 2023

Admin

PIL and DP World embark on biofuel bunkering trials at Jebel Ali Port

Singapore-based container operator Pacific International Lines (PIL) on Wednesday (6 December) said it signed a Memorandum of Understanding (MOU) with DP World, which handles around 10% of the world’s container trade, to jointly develop green solutions to decarbonise global supply chains.

In the near term, both parties will collaborate on trial shipments between Jebel Ali Port in Dubai and destinations within PIL’s network, with initiatives to reduce the shipments’ GHG footprint. This will include shipments on PIL’s vessels powered by a biofuel blend, biofuel bunkering, and deploying container handling equipment at terminals that run on renewable energy to handle the shipments.

Over the longer term, the companies will explore expanding this partnership to include other ports within DP World’s global network, and using other alternative bunker fuels, such as e-LNG, green methanol or green ammonia in PIL’s vessel operations and bunkering.

It was signed by Mr Lars Kastrup, Chief Executive Officer, PIL and Mr Tiemen Meester, Group Chief Operating Officer, Ports & Terminals, DP World, at the UN Climate Change Conference (COP28) in Dubai, United Arab Emirates (UAE), conveying their commitment to combating climate change and the collective goal of achieving net zero greenhouse gas (GHG) emissions by 2050 or earlier.

Mr Lars Kastrup, Chief Executive Officer, PIL said: “Supply chain resilience and sustainability is the bedrock of global trade growth. With the renewed commitment by the International Maritime Organisation (IMO) this year to take a significant step forward to decarbonise the shipping industry, we at PIL are responding actively to IMO’s call and working to invest in and implement green solutions to achieve our target of achieving net zero by 2050. In this regard, we are pleased to have DP World joining us on our sustainability journey. Capitalising on the combined strengths of our two organisations, we can both augment our sustainability efforts as we co-develop solutions to decarbonise our supply chains.”

Mr Tiemen Meester, Group Chief Operating Officer, Ports & Terminals, DP World, said: “Decarbonisation is the single biggest concern for DP World outside the constraints and the physical movement of goods. So, we are transforming our business and the impact global trade has on the climate. We have already committed to becoming carbon-neutral by 2040 and achieving net-zero carbon emissions by 2050. But we must explore partnerships with companies that share our ambitions and technology to be deployed right now for quicker results.”

Photo credit: DP World
Published: 7 December, 2023