Green Hydrogen Revolutionizing the Shipping Industry
Key Ideas
- Traditional shipping fuels are a major source of greenhouse gas emissions, with shipping responsible for 2-3% of global emissions annually.
- Zero-emission fuels produced from green hydrogen could potentially cut shipping emissions by 80-100% when scaled up.
- Industry pioneers like Copenhagen Infrastructure Partners and companies in Africa are investing in large-scale renewable energy projects to produce green ammonia and e-ammonia.
- The World Economic Forum's First Suppliers Hub is facilitating the connection between suppliers and buyers to scale green maritime fuels and accelerate the transition to clean energy in the shipping sector.
The shipping industry is a significant contributor to global emissions, producing over a billion tonnes of greenhouse gas emissions annually. Traditional bunker fuels used in shipping contain high levels of pollutants, impacting air quality and contributing to climate change. However, the emergence of zero-emission fuels produced from green hydrogen offers a promising solution to decarbonize the maritime sector. These fuels, including e-methanol and e-ammonia, align with the International Maritime Organization's goal of achieving net-zero shipping by 2050.
Industry leaders are already investing in large-scale renewable energy projects to produce green fuels. For example, Copenhagen Infrastructure Partners is developing the Murchison project in Western Australia, which aims to use wind and solar energy to produce green ammonia. Similarly, companies in Africa like Phelan Green Energy and Hyphen Hydrogen Energy are working on facilities to produce e-ammonia at scale, contributing to significant reductions in carbon dioxide emissions.
The World Economic Forum's First Suppliers Hub is playing a crucial role in connecting stakeholders and facilitating the scaling of green maritime fuels. By bringing together suppliers, buyers, financiers, and policymakers, the hub aims to overcome deployment challenges and accelerate the adoption of hydrogen-based fuel technologies in the shipping industry. The transition to green fuels not only offers environmental benefits but also creates opportunities for countries with abundant renewable energy resources to lead in sustainable practices.