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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.

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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

 

 

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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