Feasibility of Green Shipping Corridors in China: A Technological Assessment
Key Ideas
  • Research by the International Council on Clean Transportation explores the viability of green shipping corridors in China using renewable fuels like hydrogen, methanol, and ammonia.
  • Identified routes, including those between Yangtze River Delta to Bo Sea and Pearl River Delta to Bo Sea, could potentially be the first movers towards green corridors in the country.
  • To establish zero-emission vessels on these routes, sourcing 6,000 tonnes of ammonia or methanol, or 900 tonnes of renewable hydrogen by 2030 is necessary, requiring significant renewable electricity supply.
  • Challenges include the higher cost of renewable hydrogen compared to traditional fuels, with the need for policy support to achieve cost reductions by 2050 and the complexity of coordinating green shipping corridors globally.
The International Council on Clean Transportation conducted a study to evaluate the feasibility of implementing green shipping corridors in China's coastal areas. The research focused on the potential of utilizing renewable marine fuels such as hydrogen, methanol, ammonia, and batteries to power ships without refueling en route. The study concluded that the technological feasibility of adopting renewable marine fuels for China's coastal shipping routes is high. Three specific routes were identified as promising candidates for establishing green shipping corridors in China: the Yangtze River Delta to Bo Sea, the Pearl River Delta to Bo Sea, and an intraregional route within the Yangtze River Delta region. These regions are significant maritime hubs, hosting major ports like Tianjin, Shanghai, and Shenzhen. Container ships could potentially utilize renewable marine fuels to navigate a 1,400 nautical mile corridor from Tianjin to Shenzhen. To enable the operation of zero-emission vessels on these routes, a substantial amount of renewable hydrogen, methanol, or ammonia needs to be sourced, requiring a significant supply of renewable electricity by 2030. However, the cost of renewable hydrogen is projected to be $7.60/kg by 2030, considerably higher than traditional marine fuels. Achieving a 32% cost reduction by 2050 would necessitate strong policy backing to ensure the viability of these green corridors on a larger scale. The study also highlighted the challenges associated with coordinating green shipping corridors, noting that while there were 44 initiatives globally, none had been fully operational as of December 2023. The potential advantage of domestic routes lies in stakeholder homogeneity, where a single entity could manage both cargo and vessel operations. Overcoming these challenges will be crucial for the successful implementation of green shipping corridors in China and globally.
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