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Bridging the Gap: Report Calls for Stronger Support in Green Shipping Corridors

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Global Logistics, Global Trade Daily, News, Ocean Ports

Bridging the Gap: Report Calls for Stronger Support in Green Shipping Corridors

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A new report by UMAS, UCL, and the Global Maritime Forum (GMF) highlights the need for additional support to make green shipping corridors commercially viable, despite improvements under evolving policies from the IMO, EU, and US.

Titled Building a Business Case for Green Shipping Corridors, the report examines the financial challenges of green corridors, the impact of upcoming regulations, and the necessary support to drive adoption of sustainable maritime fuels like e-ammonia and e-methanol.

The Cost Gap Challenge

Green shipping corridors aim to establish a scalable supply chain for sustainable fuels, but high costs remain a major obstacle. While new policies—including the IMO’s global fuel standard, the EU’s Emissions Trading System (ETS), and the US Inflation Reduction Act (IRA)—will help lower costs, they fall short of making e-fuels cost-competitive with conventional alternatives.

The report outlines three key shipping sectors—gas carriers, container ships, and bulk carriers—and assesses how regulatory shifts could improve the business case for green corridors. It finds that while biofuels and blue ammonia may be cheaper in the short term, e-fuels like e-ammonia are expected to gain competitiveness as production scales and compliance requirements tighten.

The Need for Targeted Support

Despite regulatory progress, additional economic measures are necessary to accelerate adoption. The report suggests mechanisms like Contracts for Difference (CFDs), e-fuel auctions, and financial incentives for over-compliance with e-fuel mandates. Revenue generated through an IMO-imposed emissions levy could provide economic backing, but in its absence, national governments may need to step in.

Industry-Wide Collaboration Required

With 62 green shipping corridors already announced, strategic partnerships across the value chain will be critical for success. Cargo owners, ship operators, and fuel producers must align on long-term commitments to reduce investment risks and drive infrastructure development.

Deniz Aymer, Senior Consultant at UMAS, emphasized that while regulations will reshape the business case for green shipping, direct support is essential to bridge the cost gap. Similarly, Dr. Nishatabbas Rehmatulla of the UCL Energy Institute warned that without clear demand signals and public backing, many announced green corridors could stall before implementation.

Momentum Building for Zero-Emission Shipping

Efforts to decarbonize shipping are gaining traction. Just this week, the EU granted €7.8 million ($8.1 million) to the STEESMAT project, which focuses on developing power distribution systems for future zero-emission vessels.

As the transition to sustainable shipping accelerates, the report underscores the urgency of targeted support to ensure green shipping corridors can fulfill their role as industry trailblazers.

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3pls, Global Logistics, Global Trade Daily, News, Ocean Carriers, Ocean Ports

Nuclear-Powered LNG Carriers: The Future of Zero-Emission Shipping?

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The American Bureau of Shipping (ABS) has released a new report evaluating the potential of advanced nuclear technology to power commercial vessels, signaling a groundbreaking shift toward zero-emission maritime operations.

Read also: LNG: The Perfect Alternative Fuel for Your Business?

Small Modular Reactors for Maritime Propulsion

In collaboration with Herbert Engineering Corporation (HEC), ABS studied the integration of a high-temperature gas-cooled reactor (HTGR) into a 145,000m³ liquefied natural gas (LNG) carrier. The research delves into critical design aspects such as energy management, shielding, weight distribution, and hull reinforcement.

The report highlights that nuclear-powered vessels could achieve faster transit times and eliminate the need for frequent refueling, requiring only reactor replacements every six years. This technology offers a promising path to zero-emission operations, helping to address one of the shipping industry’s most urgent challenges—reducing its carbon footprint.

Challenges and Opportunities

While HTGR technology has been proven on land, adapting it for maritime use presents unique challenges. According to Patrick Ryan, ABS Senior Vice President and Chief Technology Officer, “This study shows that nuclear technology could address both emissions reduction and operational efficiencies. However, its application in the maritime sector is still in the early stages.”

The design of nuclear-powered LNG carriers features reactors placed at the vessel’s rear, with batteries replacing traditional fuel tanks. Enhanced hulls provide additional safety measures. Due to technical constraints, the report suggests that HTGR technology is best suited for larger LNG carriers.

Advancing Nuclear Propulsion in Shipping

The report forms part of ABS’s broader efforts to explore nuclear solutions for maritime applications. Recently, ABS introduced the industry’s first set of rules for floating nuclear power plants in partnership with the Idaho National Laboratory (INL).

The U.S. Department of Energy (DOE) has also acknowledged the potential of nuclear propulsion, awarding ABS a contract to explore barriers to adopting advanced nuclear technology in commercial vessels.

A Turning Point for Greener Shipping

With growing industry and government support, nuclear-powered LNG carriers could revolutionize maritime transportation by offering efficient, zero-emission operations. If realized, this technology may position nuclear propulsion as a pivotal solution for achieving greener shipping in the future.

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Global Logistics, Global Trade Daily, News, Ocean Ports

Maersk Unveils New Methanol-Powered Containership, Advancing Green Shipping Goals

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Danish shipping giant A.P. Moller Maersk has taken delivery of a new ultra-large containership (ULCS) during a ceremony at the Port of Aarhus, as reported by Baird Maritime. This addition to the fleet marks a significant step toward the company’s ambitious target of achieving “net zero” greenhouse gas emissions by 2040.

Read also: A Carbon Neutral Path for Maersk Still Requires LNG

Named Antonia Maersk, the vessel is part of a new series of methanol-enabled ships that Maersk will receive between 2024 and 2025, following their construction at South Korea’s HD Hyundai Heavy Industries. This move aligns with Maersk’s commitment to reducing emissions across its operations.

The Antonia Maersk mirrors its sister ship, Ane Maersk, with a length of 350 meters, a beam of 53.5 meters, a draught of 18 meters, and a capacity of 16,592 TEUs. The ship accommodates 30 crewmembers and features an innovative design that places the funnel at the stern while positioning the bridge and accommodation block forward, enhancing fuel efficiency and maximizing cargo space.

Powered by a Hyundai-MAN B&W 8G95ME-C10.5-LGIM-EGRTC eight-cylinder, dual-fuel engine, the Antonia Maersk can reach a service speed of 21 knots. This engine is capable of running on both traditional marine fuel and methanol, offering operational flexibility. The vessel’s two methanol fuel tanks, with a total capacity of 16,000 cubic meters, enable it to sail up to 23,000 nautical miles. Moreover, operating on methanol can reduce the ship’s CO2 emissions by as much as 280 tonnes per day compared to similar vessels using heavy fuel oil.

This delivery underscores Maersk’s ongoing efforts to lead the maritime industry in sustainability, with the Antonia Maersk setting a new standard for environmentally conscious shipping.