South African Ports Leading the Energy Transition in Shipping
Key Ideas
  • South African ports positioned to supply alternative bunker fuels for global shipping, leveraging renewable fuel types.
  • The report emphasizes the potential of ammonia as a suitable bunker fuel for South Africa's economy, driven by hydrogen feedstock.
  • Abundant wind and solar resources will enable ports to produce green hydrogen for local industries and green ammonia for global shipping.
  • Plans to develop 'green corridors' connecting ports for vessels to operate on zero emissions fuels are underway, with a focus on European connections.
A new study from the World Economic Forum highlights the pivotal role South African ports can play in the energy transition of the shipping industry. The report advocates for the country's ability to provide alternative bunker fuels to vessels navigating global trade routes. South Africa's strategic geographic location and availability of renewable fuel sources position it as a prime candidate for spearheading the production and supply of such fuels. Ammonia emerges as a frontrunner among new bunker fuels, with its production costs primarily attributed to hydrogen feedstock. By harnessing the abundant wind and solar energy, ports like Boegoebaai and Saldanha Bay are poised to generate competitive green hydrogen for local industries, especially in sectors like green steel, and produce green ammonia for export to international shipping. The initiative to produce e-methanol and e-ammonia has also spurred the development of 'green corridors' that will enable vessels to operate on zero emissions fuels. A consortium led by the Global Maritime Forum, involving key players like Anglo American, Tata Steel, and Engie, is exploring the establishment of a green corridor between South Africa and Europe, with potential facilitators identified in Boegoebaai, Saldanha Bay, Ngqura Port, and a hydrogen valley corridor from Durban to Richards Bay. This collaborative effort signifies a significant step towards sustainable shipping practices and economic growth in the region.
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