Singapore, 23 May 2023 – Trafigura, a market leader in the global commodities industry, has today published new research highlighting the vital role that hydrogen-based fuels will play in decarbonising shipping – and the enormous potential for countries in the ‘Global South’ to produce green ammonia and green methanol to satisfy growing global demand for these low-emission fuels.
“Our research estimates the ‘Global South’ could produce almost 4,000 exajoules per year of competitively priced green hydrogen, against projected annual shipping demand of 20 to 40 exajoules. This could provide developing countries with the chance to develop new export industries and create thousands of skilled jobs,” said Margaux Moore, co-author and Head of Energy Transition Research and Venture Investments at Trafigura. “It will, however, only be realised if the shipping industry can agree on ambitious decarbonisation targets and, crucially, implement a global price on carbon for marine fuels.”
The International Maritime Organization (IMO) is in the process of revising its initial GHG strategy and 2023 presents an important window of opportunity to set a zero, or at minimum net zero, GHG emissions target by 2050, together with ambitious goals for 2030 and 2040.
By agreeing and implementing demanding science-based decarbonisation targets in its revised GHG Strategy, the IMO can accelerate the development of low- and zero-emission fuels and establish global fuel standards, which together will attract the investment needed to overhaul the infrastructure of the global shipping industry and retrofit, or build, new ships at scale.
“Delaying action will only add to the eventual cost of decarbonisation. The IMO needs to decisively move forward to tackle the shipping industry’s emissions and start the journey to a sustainable and resilient future,” added Rasmus Bach Nielsen, Global Head of Fuel Decarbonisation at Trafigura and co-author of the whitepaper.
The whitepaper was co-authored by Margaux Moore, Head of Energy Transition Research and Venture Investment and Rasmus Bach Nielsen, Global Head of Fuel Decarbonisation and was edited by Neil Hume, Senior Manager, Corporate Affairs for Trafigura. External voices include Katharine Palmer, Shipping Lead (UN High Level), Climate Champion; Knut Ørbeck-Nilssen, CEO Maritime, DNV; Dr Uwe Lauber, CEO, MAN Energy Solutions; Jan Dieleman, Chair, Global Maritime Forum; Dumisani Theophelus Ntuli, Chief Director Maritime Transport Policy & Legislation, Department of Transport, Republic of South Africa, and Gonzalo Rafael Pantaleón Frigerio Ibar, Head of the Maritime Department of the Ministry of Transport, Government of Chile.
Download the white paper here.
Watch a video interview with the authors here.
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Trafigura’s Press Office: +41 (0) 22 592 4528 or firstname.lastname@example.org
Trafigura is a leading commodities group, owned by its employees and founded 30 years ago. At the heart of global supply, Trafigura connects vital resources to power and build the world. We deploy infrastructure, market expertise and our worldwide logistics network to move oil and petroleum products, metals and minerals, gas and power from where they are produced to where they are needed, forming strong relationships that make supply chains more efficient, secure and sustainable. We invest in renewable energy projects and technologies to facilitate the transition to a low-carbon economy, including through joint ventures H2Energy Europe and Nala Renewables.
The Trafigura Group also comprises industrial assets and operating businesses including multi-metals producer Nyrstar, fuel storage and distribution company Puma Energy, and our Impala Terminals joint venture. The Group employs over 12,000 people and is active in 156 countries.