Over 200 vessels to sail on Rotterdam-Singapore green corridor by 2028 - study

The corridor is expected to generate an annual potential demand of over 2.5 million mt by 2028 for alternative fuels, according to a joint report by the Port of Rotterdam Authority, the Maritime and Port Authority of Singapore (MPA) and the Global Maritime Forum.

PHOTO: A container ship moored in a commercial dock in Rotterdam. Getty Images

The vessels in the corridor will be dual-fuel vessels, capable of sailing on biomethane also known as bio-LNG and green methanol. The corridor’s project partners are targeting at least a 20% cut in carbon emissions through the use of low- and zero-carbon shipping fuels along the 15,000-km route. 

The Rotterdam-Singapore Green and Digital Shipping Corridor has a consortium of 25 project partners, including the two port authorities. It includes shipping firms like Maersk, CMA CGM, MSC and Hapag Lloyd. It also includes energy companies like bp, Shell and Yara Clean Ammonia. 

The project partners are developing a multi-fuel strategy for the corridor. The current focus is on “bio-based and synthetic (e-) variants of methane and methanol”, the report says. Ammonia and hydrogen fuel options will also be considered in the future.

However, “availability and affordability” challenge the widespread adoption of these alternative fuels. The report states that “pricing mechanisms and the availability of the fuels remain key drivers of actual demand”. Low- and zero-carbon fuels are more expensive than fossil fuels, preventing shipping firms from committing to long-term offtake agreements, the report argues.

The project partners have called upon the European Union and the International Maritime Organization (IMO) to provide an improved regulatory framework to boost the availability and adoption of these alternative fuels. 

The methanol-vessel order book has witnessed a surge this year, according to the classification society DNV's Alternative Fuel Insight (AFI) database. Currently, 347 methanol-fuelled vessels are in operation and on order for delivery by 2029.

By Manjula Nair

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