Ian TaylorA new report from Oceans North, Arup, the Vancouver Maritime Centre for Climate (VMCC), and C40 Cities Climate Leadership Group (C40) has found that the transition to new marine fuels ‘presents an economic opportunity for Canada’ – as an emerging producer and exporter of green hydrogen and ammonia – but also pointed out that there is still much work to be done to create the necessary infrastructure.
As previously reported, Oceans North hosted a workshop in Vancouver in November and the report published today (19 December) brings together the key conclusions from that event.
Brent Dancey, the Director of Marine Climate Action at Oceans North, commented: ‘Despite a universal understanding that the transition to new fuels will require unparalleled cross-value collaboration, there is a disconnect between energy producers and maritime sector offtakers.
‘By getting everyone in a room together, we were really able to dig into what needs to happen next and create new relationships up and down the marine fuel supply chain.’
One of the report’s key conclusions is that ships and ports can play an important role in helping the broader zero-emission fuel ecosystem develop on the West Coast – as they will both transport the fuels and also provide a source of demand – which will help justify investments in fuel production infrastructure.
Andy Ralph, Americas Hydrogen Lead at Arup, commented: ‘The capital cost and scale required for economical fuels production will require debt financing and firm fixed-price offtake of the fuels for the full life of the facility. To ramp up to match the supply to maritime demand, industry, government, and the financial sectors will need to work together to chart a pathway to first-generation zero-emission fuel projects that are competitive, profitable, and timely.’
A major issue identified by many participants at the workshop – and spotlighted in the report – was the importance of government financial support and community partnerships to fund demonstration projects, bring down alternative fuel prices, and help achieve scale quickly.
Juvarya Veltkamp, Senior Advisor to C40 Cities’ Green Ports Forum, commented: ‘Just like land-based transportation, marine industries will need help to transition, and cities can be indispensable partners in unlocking critical investments in urban climate infrastructure. The maritime sector competes with other sectors for priority access to feedstocks for zero-emission fuels, and a joined-up strategy with local communities will help to effectively communicate the unique industry needs to policymakers.’
Veltkamp also maintained that ‘allyship’ with cities on maritime decarbonisation can help to emphasise the local benefits of reducing emissions from global supply chains, while developing pathways for green jobs and a just transition.
Click here to access the report, New Energy Markets in West Coast Shipping
Image: Shutterstock
Ariane Morrissey
