The Week in Alternative Fuels

Nations pledge to scale up green marine fuel production as COP27 wraps up.

PHOTO: Green hydrogen production facility. Getty Images

The second and final week of the COP27 climate conference in Egypt saw participants sit up and take note of the calls for increasing green fuel production. Although there were some big announcements and pledges to create a green marine fuel supply at par with future shipping demand, the jury is still out on whether they will deliver.

A quartet of global organisations including the IMO and IRENA predict that developing nations stand to reap the most benefits from shipping's green transition. There are massive opportunities for producing fuels with renewable energy in many countries in the Global South, especially from solar and wind power.

The IMO highlighted the efforts of developing countries to become top suppliers of green fuels, while the World Bank promised to promote ammonia and methanol production in Morocco, Colombia and Brazil, and hydrogen production in Namibia. Chile reiterated its plans to become a leader in producing renewable marine fuels, while Brazil expressed its intention to strengthen its position as a biofuels hub.

The Netherlands agreed to source green hydrogen from Oman. The Dutch government did not specify a specific off-take volume at COP27. But the Rotterdam Port Authority has previously announced plans to supply 4.6 million mt/year of hydrogen to Europe by 2030.

10 shipping companies and industry leaders, including Danish giant A.P. Moller - Maersk and marine engine manufacturer MAN Energy Solutions pledged to fully decarbonise shipping by 2050, through producing and consuming fuels based on hydrogen.

Putting words into action, Maersk partnered with the Jordanian government to source green fuel to power its upcoming fleet of 19 methanol-ready vessels. Maersk has also signed green methanol sourcing deals with eight companies, as well as the Spanish and Egyptian governments.

Finally, Panama shared its ambition to become a global transit hub for green hydrogen with a goal of 500,000 mt/year of green hydrogen by 2030, and an eight-fold increase to 4 million mt/year by 2040.

By Konica Bhatt

Here is our selection of five top alternative fuels stories from this week:

COP27: Developing nations poised to gain from shipping’s green transition - IMO

Developing nations stand to reap the most benefits from shipping's green transition, given the massive opportunities for green bunker fuel production, a group of international organisations say.

The prediction came from International Maritime Organisation (IMO), United Nations Conference on Trade and Development (UNCTAD), International Renewable Energy Agency (IRENA) and the World Bank.

On the sidelines of COP27 in Egypt this week, IMO secretary-general Kitack Lim said shipping decarbonisation requires a rapid move away from fossil fuels towards to zero-carbon alternatives.

The World Bank's global transport director Nicolas Peltier said the World Bank will be promoting green ammonia and methanol production in Morocco, Colombia and Brazil, and hydrogen production in Namibia. According to him, shipping's decarbonisation can be a boost for developing countries' ambition to become key green fuel suppliers.

The IMO reports that Namibia has begun laying the groundwork to become an alternative fuel exporter. Namibian conglomerate Ohlthaver & List (O&L) and Belgian clean technology company CMB.TECH have agreed to develop Namibia's first green hydrogen plant by 2024, which will produce green hydrogen for the shipping industry.

Chile's energy minister Diego Pardow stresses that his country's abundance of renewable energy will be used to produce fuel for the maritime sector in the future. Chile has long been considered a strategic location for green fuel production because of its sources of renewable energy, especially solar and wind, and "it has the potential to become one of the world's cheapest producers of green hydrogen," the Port of Rotterdam said earlier this year.

Brazil aims to become a biofuel hub, and Oman wants to become one of the world's leading hydrogen hubs, with the goal of producing 1 million mt of green hydrogen by 2030. The Sultanate will export zero-carbon bunker fuel to the Netherlands, as announced at the climate conference.

Other developing nations like India have also expressed intent to become green hydrogen hubs for the maritime sector. “The future hinges on investing in non-fossil fuels. This is a great opportunity for developing countries with solar, wind, thermal, hydro, or biomass energy. Innovative financing mechanisms will be needed," said UNCTAD secretary-general Rebeca Grynspan.

A.P. Moller - Maersk will work with Egyptian authorities to conduct a feasibility study on green hydrogen-based marine fuel production in Egypt by the end of the year. It is also working with the Spanish government to produce up to 2 million mt/year of green methanol.

The Danish shipping giant’s chief advisor on climate & green transition public & regulatory affairs Concepción Boo Arias says, “Green methanol is ready to use right now but the main challenge is to scale up production.”

By Konica Bhatt

COP27: Netherlands eyes green hydrogen imports from Oman

Dutch Prime Minister Mark Rutte has signed an agreement with the government of Oman on hydrogen cooperation.

At the COP27 climate conference, they announced plans to set up a value chain for the Netherlands to import green hydrogen from Oman, which will go towards decarbonising shipping and other industries.

The announcement comes a few days after Oman declared its intention to become one of the world’s leading green hydrogen hubs. The Sultanate has set up a state-owned hydrogen-focused energy company, Hydrogen Oman (HYDROM), to oversee its hydrogen project. Through HYDROM, the government will allocate land to developers and help them in planning green hydrogen production projects.

Rotterdam Port Authority says that it already “has close ties with Oman.” The port has a joint venture with the government of Oman to develop and operate the Port of Sohar in the north of the country.

In May this year, the Rotterdam Port Authority announced plans to supply 4.6 million mt/year of hydrogen to Europe by 2030, through a combination of local production and imports. It is also striving to establish supply chains for hydrogen with other countries where renewable energy can be harnessed and exported to northwest Europe.

By Shilpa Sharma

COP27: Maersk, MAN ES pledge to fully decarbonise global shipping by 2050

Danish shipping company A.P. Moller – Maersk, German engine manufacturer MAN Energy Solutions (MAN ES), and eight other organisations have agreed to produce and use green hydrogen-based fuels.

The signatories have signed an agreement during the COP27 meeting and pledged to:

• build zero-emission vessels operating on deep sea routes by 2030
• scale up production of green hydrogen for the shipping sector to 5.5 million mt/year by 2030
• fully decarbonise shipping by 2050 (at the latest)

The consortium of 10 organisations has also called upon the International Maritime Organization (IMO) and its member states to commit to 100% emissions reductions by 2050 with robust interim targets.

According to Johannah Christensen, chief executive of the Global Maritime Forum, the maritime industry needs a supportive policy framework to achieve its decarbonisation target by 2050.

Christensen says the shipping industry must accelerate its transition towards zero-emission fuels. The commitment will lead to the creation of a "sufficient supply of green fuels and a demand for zero-emission shipping."

Maersk's chief executive of fleet and strategic brands, Henriette Thygesen says that access to clean hydrogen is an "important pathway" to decarbonise shipping.

According to MAN ES chief executive Uwe Lauber, the maritime industry needs large-scale production of green hydrogen that can be supplied as marine fuel. Through its hydrogen subsidiary H-TEC SYSTEMS, MAN ES is working to mass produce electrolysers, which is an important apparatus used in hydrogen production.

The joint statement on "green hydrogen and green shipping" has been facilitated by the United Nations Climate Change High-Level Champion and the non-profit RMI. Other signatories include Aspen Shipping Decarbonisation Initiative, Getting to Zero Coalition, Green Hydrogen Catapult, Green Hydrogen Organization (GH2), ACWA Power, Fortescue Future Industries, and InterContinental Energy.

By Konica Bhatt

COP27: Maersk to explore green methanol production in Jordan

Danish Shipping company A.P. Moller – Maersk has signed an agreement with the Jordanian government to explore the production of green methanol in Jordan's Aqaba region.

The deal, signed during a COP27 meeting yesterday, entails the exploration, investment, and development of a project to produce green methanol in the Aqaba region.

Jordan's central location in the Middle East and Africa and abundant renewable energy sources will be crucial to the project, Maersk’s director of emission reduction Morten Christiansen said.

The project will also support the country's aim to become "a regional center for green energy production," Jordan's Minister of Energy and Mineral Resources Dr. Saleh Al-Kharabsheh said.

Maersk has been actively working towards its goal of reducing carbon dioxide emissions by switching to alternative clean fuels like green methanol.

It currently has 19 vessels capable of running on green methanol that will come into operation between 2023-2025. Approximately 750,000 mt of green methanol will be required to run these vessels. Maersk has secured seven strategic partnerships so far this year to secure the initial volumes needed for these vessels.

This month, Maersk collaborated with the Spanish government to produce up to 2 million mt/year of green methanol in the country to supply its fleet.

By Tuhin Roy

COP27: Panama sets out to become global transit hub for green hydrogen

Panama claims that about a third of global green hydrogen exports in 2030 could pass through the Panama Canal.

Panama has set an ambitious target of producing 500,000 mt/year of green hydrogen by 2030 and about 4 million mt/year by 2040, Panama’s undersecretary of energy Rosalina Lindo said yesterday at the COP27 summit.

Lindo said the country is evaluating investments needed to strengthen storage infrastructure and build hydrogen carriers to scale up hydrogen exports from the region. She thinks that other Latin American and Caribbean nations have the potential to scale up their green hydrogen production.

Panama is looking to boost both its own production and exports of green hydrogen, green ammonia, and e-methanol for the maritime sector, Lindo said. She expects demand for these renewable marine fuels to come from European and Asian buyers.

Panama is expected to roll out its “Green Hydrogen Strategy” by December next year, which will list out strategies and projects to produce green hydrogen, as well as exports and imports. Lindo said that some of the 16 green hydrogen initiatives and studies launched earlier this year have already moved from the drawing board and are closer to becoming reality.

The country is also working with key partners such as the UAE and Norway on initiatives to increase green hydrogen production.

By Nithin Chandran