A study by global environmental consultancy Ricardo and Environmental Defense Fund for the P4G Getting to Zero Coalition Partnership has found that South Africa “holds an untapped opportunity” to supply the global shipping industry with zero-carbon fuels.

The production of green hydrogen-derived fuels can help to meet decarbonisation targets and act as a catalyst for the country’s economy, thereby opening new export markets and supporting an equitable transition, while also creating the jobs of the future.

The study explores the economic and environmental potential for the implementation of zero-carbon shipping fuels sourced from South Africa.

Taking this into account, and the fact that international maritime transport is considered to be on the verge of an energy revolution, the study authors say that, within this decade, “the shipping industry must start to replace traditional heavy bunker fuel with new zero-carbon shipping fuels generated from renewable energy to meet decarbonisation targets”.

South Africa has vast renewable energy sources and the country has committed to reach net zero emissions by 2050.

“Our study shows that South Africa has an abundance of renewable energy potential. It is enough to supply the country’s domestic electrical demand, as well as the production of zero-carbon fuels to supply commercial vessels refueling in its international ports.

“The adoption of zero-carbon propulsion technologies at South Africa’s ports could attract investment of between R122-billion and R175-billion in onshore infrastructure by 2030,” says Environmental Defense Fund international climate director Aoife O’Leary, who adds that all that is needed to unlock this investment is “the right policy incentives set by the International Maritime Organization”.

The report finds that South Africa’s geographical location and economic development make it particularly well suited to distribute zero-carbon fuels for the South African shipping sector, as well as for export to international markets.

“South Africa has the opportunity to feed into the growing global demand for decarbonized materials, products and services by offering bunkering capability for zero carbon fuels to vessels of all types.

“With access to busy shipping routes, abundant renewable energy potential, and experience handling these and other fuels, South Africa is in a great position to produce the shipping fuels of the future, access a growing global market, and thus catalyze a new low carbon economy,” says Ricardo future energy specialist and project lead Olivia Carpenter-Lomax.

University College London energy and shipping reader Tristan Smith, meanwhile, comments that “it is easy to make a generalisation that many developing countries are positioned to gain from a future hydrogen economy and hydrogen-derived fuel use in shipping”.

This report goes into the important specifics of that opportunity for South Africa and finds not just why this is necessary, but the numerous reasons to be optimistic and seek to accelerate progress towards this future, he explains, adding that several zero-carbon fuels can potentially be used in shipping.

“The abundance of renewable energy resources in South Africa means that shipping fuels can be derived from renewable electricity generation.”

Further, Global Maritime Forum project director Ingrid Sidenvall adds that the report identifies hydrogen and ammonia as the most suitable options for large commercial vessels, while South Africa’s small domestic vessels can be supplied through direct electrification using onboard batteries and motors.

“Shipping’s demand for zero-carbon fuels could provide a constant long-term revenue stream, which is an attractive feature for investment,” she notes.

The adoption of zero-carbon shipping fuels does depend on global market requirements, but the report suggests that South Africa should consider that vessels adopting zero carbon fuels bunkering in various ports around the world must have the opportunity to refuel along their journey.

“The transition to a zero-emission future is for and about people. Achieving an inclusive, globally scalable transition requires a systems-oriented, transparent approach. This requires standards to be set by the maritime industry to encourage the zero-carbon transition not only for vessels but for global ports.

“South Africa can be a part of driving international standards as an important player in the international shipping sector and as a pioneer in zero carbon fuels,” says World Economic Forum supply chain and transport head Margi Van Gogh.

Adopting zero-carbon shipping fuels has significant benefits and synergies for South Africa far beyond the shipping sector and is in line with South Africa’s commitment to reach net zero carbon by 2050, according to the report, which adds that zero carbon fuels may also be used in wider industries such as fertiliser and steel production and could act as a catalyst to meeting South Africa’s overall carbon commitments.

There is also the potential to create many jobs within the supply chains of zero-carbon fuels, which can support South Africa’s just and equitable transition as jobs in coal mining and coal-based electricity generation decrease.

The report highlights the ports of Saldanha Bay, Ngqura and Richards Bay as great examples of how South Africa can capitalise on a zero-carbon fuel transition due to established shipping routes and significant port export hubs.