New Study Sets Out Benefits Of Green Shipping Corridor

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  • The study estimates the quantity of near-zero and zero-emission fuels required for this traffic by modelling the adoption of zero and near-zero carbon alternative fuels by vessels operating on the corridor through to 2050.
  • The study highlights the potential socio-economic impact of transitioning to zero and near-zero emission fuels and leveraging on digital solutions.

A year after the signing of a Memorandum of Understanding (MoU) to establish a Green and Digital Shipping Corridor (GDSC), the Maritime and Port Authority of Singapore (MPA), Port of Los Angeles and Port of Long Beach have completed a baseline study which outlines the future demand for zero and near-zero emission fuels and the benefits from decarbonising the shipping routes between the nations, reports MPA.

Green and Digital Shipping Corridor between Singapore, Los Angeles and Long Beach

The study, commissioned by C40 and the ports, and conducted by the American Bureau of Shipping, analysed maritime trade flows between Singapore, Los Angeles and Long Beach, and provided a baseline of activities and energy demand requirements for vessels operating on the corridor through to 2050.

The study estimates the quantity of near-zero and zero-emission fuels required for this traffic by modelling the adoption of zero and near-zero carbon alternative fuels by vessels operating on the corridor through to 2050, considering various parameters such as fuel production costs and fuel availability, and in view of the targets in the 2023 IMO Strategy on Reduction of Greenhouse Gas Emissions from Ships.

The study also estimates that, at full implementation, the corridor could generate over 700 new job opportunities in zero and near-zero emission fuel production and also improve local air quality.

On a more granular level, the study notes that vessels operating on the corridor represent 7% of the world’s container trade, which is about 1% of Singapore’s, 14.5% of Port of Long Beach’s, and 20% of Port of Los Angeles’ traffic.

The projected annual energy demand of vessels on the corridor is estimated to be approximately 60,000 terajoules (TJ), which equivalent to approximately two months of Singapore’s national electricity generation.

Shipping demand on the corridor is estimated to be around 850,000 tons of methanol and 160,000 tons of ammonia annually by 2030, displacing the equivalent GHG emissions from almost 320,000 cars annually.

The partnership convened the first in-person stakeholder meeting of the corridor together with industry value-chain representatives during Singapore Maritime Week (SMW) 2024 on 18 April.

This event was described as a prelude to onboarding stakeholders to the corridor. Subsequent working groups will focus on developing green and digital solutions within the corridor and focus areas will include the supply and adoption of zero and near-zero emissions fuels (e.g. green ammonia, green methanol) at scale, including safety, emergency response, mitigation and standards-setting, as well as the development and scale-up of energy efficiency solutions, including through digital tools (e.g. route optimisation, remote monitoring) and technologies that reduce fuel consumption, such as wind-assisted technologies).

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Source: MPA