Mexico is well-positioned to build a valuable zero carbon shipping fuels sector, as it has an abundance of renewable energy potential along with direct access to busy shipping routes.
This is according to a new study, conducted by Ricardo and Environmental Defense Fund for the P4G Getting to Zero Coalition Partnership.
Mexico’s potential for renewable energy generation, the location of its ports on busy shipping routes, and strong trading relations make the country well suited as a zero-carbon shipping fuel hub.
The production of green hydrogen-derived shipping fuels could help Mexico meet its decarbonization targets by catalyzing renewable energy generation supply chains, skills, and economies of scale, which support the wider adoption of new technologies.
Well-placed countries like Mexico will only reap the benefits if governments and the shipping industry coordinate efforts for effective climate regulation to expedite the provision of fuels and infrastructure.
The study explores the economic and environmental potential for the implementation of zero carbon shipping fuels through the shipping sector of Mexico. The abundance of renewable energy resources in Mexico means that shipping fuels can be derived from renewable electricity generation.
The study reveals that several zero carbon fuels have the potential to be used to decarbonize maritime shipping. UMAS played an important role in the study by providing the shipping data analytics based on the latest International Maritime Organization emission inventories. The group also provided important insights in Mexico thanks to the group’s engagement with key stakeholders and reviewing the report. Dr.Santiago Suarez De La Fuente, Lecturer in Energy and Transport at UCL Energy Institute, said:
“The study has identified hydrogen and ammonia as the most suitable options for large commercial vessels such as tankers, containers and bulk carriers, while small vessels such as port service vessels can be supplied through electrification. The renewable energy potential along with the advantageous locations of ports gives Mexico the opportunity to play a crucial role in driving the zero-carbon shipping fuel transition.”
This study is part of the P4G Getting to Zero Coalition Partnership, spotlighting the potential of regional hubs to pioneer zero-carbon shipping fuel development in Mexico, South Africa, and Indonesia.
The Getting to Zero Coalition, a partnership between the Global Maritime Forum, Friends of Ocean Action and World Economic Forum, is a community of ambitious stakeholders from across the maritime, energy, infrastructure and financial sectors, and supported by key governments, IGOs and other stakeholders, who are committed to the decarbonization of shipping.
Read the report: EDF (2021) Zero carbon shipping-Mexico