Oceans of Opportunity: Supplying Green Methanol and Ammonia at Ports

The Oceans of Opportunity report outlines strategies for ports to become first movers in providing green methanol and ammonia bunkering. The report highlights key findings on the cost-effectiveness of transporting green methanol and ammonia, both derived from green hydrogen, which is expected to foster extensive trade networks between production centers and major ports. Moreover, it underscores the pivotal role of policy in shaping a country or region’s position within the evolving hydrogen economy.

Project Objective:

• Help address the ‘chicken and egg’ problem: a key barrier to investment in zero-emission fuelling, whereby ports will not invest in zero-emission bunkering infrastructure in the absence of clear levels of demand for zero-emission fuels, while shipowners will not deploy zero-emission vessels without assurance about ports’ ability to supply the fuels, creating a deadlock.
• Provide greater clarity about the availability of green methanol and ammonia, by exploring where these fuels may come from, whether there will be enough, what their full cost will be, and what must be done by when to ensure their availability by 2030.
• Create a framework for port action and thereby expedite progress in the development of zero-emission fuelling infrastructure.

Target Groups:

• Maritime ecosystem, particularly ports and bunker suppliers
• Fuel producers and energy companies
• Government representatives, from energy, maritime, transport, trade and development departments

Project Milestones:

• July 2023: First sounding board session to kick off the co-development and validation of the report analysis with nearly 15 leading fuel producers, bunker suppliers, ports, governments.
• December 2023: Presentation of preliminary results at COP29, followed by a high-level public-private panel discussion.
• 15 April 2024: Launch of the Oceans of Opportunity report at Singapore Maritime Week.

Leading Members:

• Global Maritime Forum
• RMI

Project Participants:

• Bunker Holding Group
• InterContinental Energy
• Maritime & Port Authority of Singapore
• Pilbara Ports
• Port of Antwerp-Bruges
• Port of Rotterdam
• Port of Amsterdam
• Port of Seattle
• UMAS/University College London
• US Department of Energy
• World Fuel Services
• Yara Clean Ammonia

Results:

• The low cost of transporting green methanol and ammonia, which are produced from green hydrogen, will lead to extensive trade linking low-cost production regions to key ports. Policy support for green shipping fuels has the potential to significantly impact a country or region’s position in this burgeoning hydrogen economy.
• As production of green ammonia and green methanol ramps up this decade, the analysis suggests different dynamics around the supply of the two fuels at ports. Developments in green methanol production suggest the supply of the fuel could be concentrated in major bunkering hubs and at European ports. In contrast, there could be global green ammonia trade, with long-distance transport of the fuel to key bunkering hubs from projects in low-cost production regions including the United States, South America, Australia, and Sub-Saharan Africa.
• Ports will play a crucial role in facilitating the adoption of zero-emission fuels to meet the IMO’s target of at least 5% of international shipping’s fuel to be zero- or near-zero emission by 2030. Four port “archetypes” can be identified, which can be used by ports and the bunkering ecosystem to tailor the actions they take to be first movers in supplying green methanol and/or ammonia.