- Shanghai is transforming its port into a green shipping hub to meet global emissions regulations.
- The city aims to supply over 1 million tons of low-carbon fuels annually by 2030.
- China is set to compete with Singapore in green shipping, leveraging its renewable energy advantages.
Shanghai aims to make its port a leader in green shipping. The government plans to create a center for sustainable fuel supply to reduce emissions in line with new international standards, reports Infra.
Cleaner Fuel Targets for 2030
The city’s goal is to provide over 1 million tons of low-carbon bunkering fuel each year by 2030. This marks a strategic push to supply cleaner fuel options as shipping emissions regulations tighten globally.
China is stepping up competition with Singapore’s bunkering market, positioning Shanghai as a key player in Asia for green fuel supply. The shift is partly in response to upcoming emissions targets from the International Maritime Organization.
Gradual Transition to New Fuels
Although China’s green fuel supply is growing, traditional fuel oils dominate with nearly 20 million tons sold in 2023. A complete shift to alternatives like hydrogen, methanol, and ammonia is expected to take years, likely advancing significantly post-2040.
With its strong foothold in solar and wind energy, China is well-placed to produce hydrogen-based fuels. This advantage supports its ambition to lead in maritime decarbonization.
Green Fuel Partnerships
China’s major clean energy companies are collaborating on green fuel projects. For instance, key players in solar and wind energy are now involved in producing bio-methanol and green ammonia for shipping fuel.
The China Classification Society forecasts that by 2050, China will supply 161 million tons of green ammonia and 143 million tons of green methanol, marking a significant increase from current levels.
Shanghai’s Strategy for Emissions Reduction
“China has great supply potential, backed by its world-leading renewable and hydrogen production capacity,” says researcher Wen Miaomiao.
This development in green fuel capacity will be crucial to Shanghai’s decarbonization goals.
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Source: Infra
