How Clean Shipping Fuels Support Trillion-Dollar Investments
Implementing the use of clean fuels such as green ammonia creates the potential of trillion-dollar investment opportunities, specifically in developing countries, according to a report released by Ricardo Energy and Environment, commissioned by EDF. Identified by Sailing on Solar, the “green” alternative serves as an emissions-free substitute when used by shippers that produce it at-scale with untapped renewable energy resources. This approach ultimately eliminates fossil-fuel usage while offering a clean solution to modified shipping engines and hydrogen fuel cells.
“Emissions-free shipping can be the engine that drives green development across the world,” Aoife O’Leary, senior legal manager at Environmental Defense Fund Europe, said. “The abundance and falling costs of untapped renewable resources like solar and wind energy in developing countries make the production of maritime fuels that emit no greenhouse gases a big potential investment opportunity where such production is undertaken by additional renewable capacity. And shippers can look forward to future running on the air, water, wind and sunlight that go into manufacturing new fuels like green ammonia.”
Additional findings from the research addressed the need for an established supply chain of green ammonia for the maritime sector, specifically calling out countries with renewable energy resources as a primary resource. While the IMO considers new policies to support the goal of cutting emissions in half, trillions of dollars in new investments are on the horizon if renewable energy alternatives are strategically implemented to alleviate financial strain for the production of sustainable alternative fuels.
“Countries must get serious about exploring international policies that can provide the incentive for alternative fuels like green ammonia and other sustainable shipping fuels to be adopted,” said O’Leary. “First movers will be able to benefit from investment in their economies towards additional renewable capacity whilst also gaining a competitive advantage as the shipping industry transitions to clean fuel. All that is needed to ensure this vision becomes reality is a sensible policy, including robust environmental safeguards, to allow the investment to flow.”