Nation scores big in green shipping

China is making big strides in promoting green development of the global shipping industry, but closer international collaboration is needed to ensure the effectiveness of such a transformation, experts said.

Chinese shipbuilder Nantong CIMC Sinopacific Offshore and Engineering Co Ltd, or CIMC SOE, inked a deal with Norwegian company Amon Gas recently for the construction of two ammonia dual-fuel medium-sized liquefied petroleum gas/liquid ammonia carriers, valued at $160 million.

These vessels, each with a capacity of 51,000 cubic meters, represent the world's largest medium-sized gas carriers, marking a notable advancement in China's clean-energy shipbuilding sector. The two ships are expected to be delivered in 2028.

Yang Xiaohu, executive director and president of CIMC Enric, the parent company of CIMC SOE, said the deal is a testament to the fact that the company's technological strength in clean energy shipbuilding has won recognition from international shipowners.

"The offshore clean energy business has become one of the important cornerstones of the company's strategy to deploy international shipping clean energy solutions and comprehensive services," Yang said.

The company has established core competencies such as production capacity for biomass-based green methanol and core process solutions for green hydrogen/ammonia/methanol projects, including port bunkering, he added.

This agreement comes at a time when the global shipping industry is increasingly focused on promoting sustainable practices in response to rising demand to reduce greenhouse gas emissions from maritime transportation.

The International Maritime Organization in 2023 set ambitious targets to achieve net-zero emissions by or around 2050. As its interim goals, 20-30 percent emissions from international shipping are targeted for reduction by 2030, and up to 80 percent to be cut by 2040, compared to the 2008 levels.

Ammonia, as a clean and efficient alternative fuel, can reduce the shipping industry's reliance on traditional fossil fuels and significantly lower carbon emissions during vessel operations, making it an important option for the next generation of marine fuels.

According to the Ammonia Energy Association, 130 ammonia-fueled ships had already been ordered globally as of March, with an additional 225 on reserve.

Wang Guowen, senior research fellow and director of the research center for logistics and supply chain management at Shenzhen, Guangdong province-based think tank China Development Institute, said green transformation of the shipping industry is an important direction for tackling climate change and for enterprises to fulfill their social responsibilities.

Following the adoption of low-sulfur fuels and liquefied natural gas, hydrogen and ammonia fuels are emerging as alternatives, which represent crucial measures to drastically reduce emissions, he noted.

"In this context, China's shipbuilding industry has been making numerous innovative efforts in the decarbonization of large vessels. This is evident in the development of dual-fuel ships, with enhanced configurations to support such clean energy transitions."

Ren Weimin, director of the transport division at the United Nations Economic and Social Commission for Asia and the Pacific, stressed the importance of international cooperation in the green drive.

"Achieving green transformation in the shipping industry requires close international cooperation. Countries and their governments should face up to the issues of disrupted global supply chains and blocked maritime shipping routes, and work together to create favorable conditions for green shipping."

Chen Yang contributed to this story.