Towards green bunkering and charging in ports

Background 

The report, Role of Port Authorities in green energy supply for transports chains, is a knowledge-building study that examines the current and future situation of ship bunkering in Sweden. 

It includes developing a green bunkering and charging strategy for ports and provides a comprehensive overview of alternative fuels and charging. Biofuels, methanol, hydrogen, ammonia, and electric batteries are included. A prerequisite for a transition is increased energy efficiency including measures such as wind propulsion, as future low-carbon fuels will initially be more expensive and have limited production capacity.

The study considers development, including technical description and maturity level, national production capacity, infrastructure and storage needs, environmental, economic, and safety aspects. The report also covers a techno-economic assessment of renewable fuels, including capital and operational costs, cost and benefit analyses. It also includes a discussion about national, EU, and IMO (International Maritime Organization) policies and funding related to sustainable shipping. 

Conclusions from the study:

• Ships’ emissions must be significantly reduced – and it is urgent!
• No single fuel will replace fossil oil and gas, instead several low-carbon fuels and solutions will be available and complement each other.
• A shift from centralised to more local production and bunkering is likely, with synergies, but also competition, between shipping and land-based industries. 
• Policies and regulations are essential for supporting development. Pilot projects and financial support are needed to prepare for a full-scale transformation. 
• Cooperation among many actors and increased knowledge is crucial to grasping quick development. 
• There are business opportunities ahead! 

- Almost all ships today still use conventional fuels of fossil origin. This is expected to change, but the uptake of renewable fuels is slow due to insufficient fuel production capacity, technical immaturity and slow implementation of regulations and requirements, says Linda Styhre, researcher and project manager at IVL Swedish Environmental Research Institute, which conducted the study together with colleagues from IVL Swedish Environmental Research Institute.

Broad interest from Swedish ports

To conduct the study, Blue Supply Chains has contacted many of the Swedish ports to discuss the decarbonisation of the shipping and port industries and to present research findings.

- Many port authorities and terminals are investigating the possibility of producing or distributing renewable fuels to the transport sector. They have plans for their operations to become net-zero carbon, and some also have targets for their customers’ operations to reduce their climate footprint. The interest is there, but it is difficult for ports to know which fuel to use, and which will be profitable over time, says Karl Jivén, IVL.

Blue Supply Chains' next step is to provide a roadmap for bunkering and charging strategy in the test bed Umeå. This includes a feasibility study of a green hydrogen-based market, the potential for hydrogen for the marine sector, and technical aspects of hydrogen production.