ABS has published the report “Green Shipping Corridors – Ledging Synergies”, analyzing green corridors and how they can contribute to the maritime decarbonisation landscape.

What is a green flow?

AAccording to the report, in the context of green corridors, this specifically indicates the geographic connection between two locations and the enabling environment that helps reduce emissions. A corridor, in addition to being a geographic reality, can also serve as an enabling environment for new business cases and policies that help organizations achieve low or zero carbon emissions.

A corridor should be bottom-up, created on the basis of a detailed pre-feasibility and feasibility assessment that clearly addresses the following:

  • What is the business case?
  • What alternative fuels are available and what infrastructure is there and how easy is it to develop new infrastructure?
  • What are the policies and government support that help enable the development of a green corridor?

What are the fundamentals?

#1 Collaboration across the entire value chain: Engagement along the value chain is an integral part of any green corridor since, fundamentally, a green corridor is a value chain decarbonization initiative bringing together groups of stakeholders who are solving the same problem.

For a green corridor to succeed, each of the members of the value chain must collaborate, especially at the intersection of its operational boundaries. This interaction will improve interoperability and may initially lead to blurring of borders, but over a period the entire corridor will operate as a system, which not only contributes to maritime decarbonization, but also leads to economic opportunities that do not had not been considered before.

The collaboration must be built on the basis of an open dialogue between the stakeholders in an environment of trust with well-defined contracts to avoid any problems at the interface between the stakeholders.

#2 Development of alternative fuel sectors and port infrastructure: An important decision criterion for a green corridor will be to quantify the energy demand for the corridor according to the evolution of the route, the use of the vessels, the type and size of the engines of the vessels.

In addition, the fuel producers of the consortium of project developers will have to calculate the demand for alternative fuel based on the characteristics of the fuel.

Decarbonization is economy-wide and therefore the shipping industry will need to assess the availability of these fuels for the shipping industry.

The Green Corridor Consortium should help fuel producers by securing long-term demand to enable capacity development and control supply.

This might be the most critical part of corridor development, since fuel supply is the underlying basis of a green corridor.

#3 Maritime impact/logistics case for a green corridor: Having a strong business case turns a green corridor from a theoretically possible action into a commercially practical solution.

The business case may vary from corridor to corridor, but inevitably the driver will be the emission reduction demand of the value chain associated with an economically optimal solution.

The various implementation solutions such as methanol, LNG, ammonia or hydrogen all have varying levels of commercial viability depending on the region.

Therefore, the fuel selection process should include a life cycle cost analysis of the different alternatives. This process will detail the emissions reduction impacts of each solution, the CAPEX associated with implementation, and the OPEX associated with ongoing operations.

Consideration may also be given to reducing alternative fuel prices over time as supply changes.

#4 Policy and regulation: Policies and regulations are a catalyst to enable these large initiatives that cover multiple stakeholders in different sectors of the economy.

Although the Maritime Green Corridor initially appears to be a marine-focused initiative, it has the potential to impact multiple sectors of the economy and therefore a top-down regulatory and policy environment that is supportive is imperative. .

Economic policies that help overcome financial barriers and regulatory policies that reduce non-financial barriers in combination are powerful catalysts for solutions that are on the verge of being commercially viable.

Industry efforts to establish green corridors

By analyzing more green corridors, the Mærsk Mc-Kinney Møller Center for Zero Carbon Transport, together with McKinsey & Company, has developed a new plan to assess the feasibility of green corridors.

The master plan provides an approach for designing and demonstrating the feasibility of green corridors. It is intended to serve as a ready-to-use guide for any actor involved in maritime transport decarbonisation green corridors.

In addition, green corridors are also of particular interest for the Arctic. For this reason, the Clean Arctic Alliance has written to ministers in Norway, Denmark, Iceland, Greenland and the Faroe Islands proposing a number of national and international actions that would help get the implementation of of these green corridors in the Arctic. waters.

According to the Alliance, within the 12 nautical territorial limits of the inland waters of each country, it proposes a ban on the use and transport of polluting heavy fuel oil (HFO). Norway has already introduced such a ban in the waters around Svalbard.

Such a ban will become an international requirement from July 2024 in certain Arctic waters, when the International Maritime Organization (IMO) Arctic HFO ban comes into effect.

Finally, the Global Maritime Forum has also published a paper examining emerging approaches to defining, initiating and governing maritime green corridors, and offers recommendations in each area.

Building on the initial conceptualization presented in The Next Wave and the signatories of the Clydebank Declaration, as well as the response to multiple requests from industry and governments interested in the concept, the document aims to reinforce the most effective and impactful while recognizing the need for flexibility.

LEARN MORE ABOUT ABS’S GREEN COLOR REPORT