International shipping is a vital industry, facilitating global trade and transporting people around the world. At the same time, it produces greenhouse gas emissions – comparable in scale to industrialised nations such as Germany or Japan - and is a significant source of air pollution. Urgent action is required to reduce emissions in a sustainable manner. The production, supply, and use of alternative fuels – many of which are linked to the hydrogen economy - are essential to this aim.
This report explores the opportunities and challenges associated with developing infrastructure for alternative fuels through a case study of a green shipping triangle in the Atlantic. This considers the global challenge at an initial project scale, considering how demand for alternative fuels could grow at a port level to realise ambitious climate action. This report explores the infrastructure required for low-carbon fuel supply, demonstrating the significant scale required even for initial projects and highlighting the need for an integrated approach to their development. Also, it frames how a Total Value approach to these initial projects can unlock significant co-benefits, strengthening their case for investment.
The global challenge Reducing emissions from shipping, in line with Paris Agreement goals, requires largescale investment in landside infrastructure, for production and supply of alternative fuels, involving commercial-scale pilot projects in the next decade. Shipping’s international nature, along with the relatively high cost and uncertain route to decarbonisation, make this a particularly challenging area of action. But delivering resilient and low carbon energy systems, production facilities and refuelling infrastructure for shipping fuels can realise significant co-benefits for the planet and the economy