• Thursday, July 25, 2024
businessday logo

BusinessDay

Global leaders adopt initiative to scale low-carbon fuel production

Global leaders adopt initiative to scale low-carbon fuel production

The Clean Energy Ministerial (CEM) has adopted the Clean Energy Marine Hubs Initiative (CEM-Hubs) at a summit in Goa, India to scale the production of low-carbon fuel.

This was aimed at transforming maritime transportation and production hubs for future low-carbon fuels.

To accommodate demand, the shipping industry is expected to transport at least 50 percent of all traded low-carbon fuels by 2050, according to the International Renewable Energy Agency (IRENA).

But the production centres, vessels and port infrastructure required to accommodate expected demand do not exist at a commercial scale. So far, only one ship in the whole global fleet has been piloted to transport liquefied hydrogen – travelling from Australia to Japan.

Read also: INQ introduces AI solutions to fix Nigeria energy challenges

To support the global transition to net-zero targets, shipping is expected to transport between two and up to five times the low-carbon fuels it will consume by 2050. The mix of fuels that shipping moves will also need to change to be aligned with the Paris Agreement.

Jean-François Gagné, head of the Secretariat, Clean Energy Ministerial, said: “Ports, shipping, and the logistics network need to be an integral part of the global clean energy transition. The Clean Energy Marine Hubs Initiative is a truly public-private platform between energy, maritime, shipping and finance communities. It represents a unique opportunity to develop concrete implementable actions to ensure greener supply chains globally.”