The Rotterdam-Singapore Green and Digital Shipping Corridor is witnessing a rising demand for sustainable fuels, with projections indicating that the need for greener alternatives to methane and methanol for container ships on this route could reach up to 5 million tons per year by 2028. This significant shift is based on current order books, but there’s a catch—the affordability and availability of these sustainable fuels still present major challenges that must be addressed to enable a smooth transition.
The Rotterdam-Singapore Green Corridor initiative aims to cut emissions from large container ships on the 15,000-kilometer route by at least 20% by 2030. Backed by 25 partners operating 90 major container vessels, this corridor handles a combined transport capacity of around 1.5 million containers (TEU) annually, making it a critical artery for global trade. But with the maritime sector’s heavy reliance on traditional fuels, finding a way to introduce sustainable alternatives isn’t as straightforward as flipping a switch.
Right now, a range of low-carbon or carbon-free fuel options are in development, with bio-based and synthetic (e-) versions of methanol and methane leading the pack. Experts expect ammonia and hydrogen to enter the picture soon, broadening the array of options for large container ships seeking greener propulsion. If everything stays on course, the partners involved in this Green Corridor project are expected to operate more than 200 vessels capable of running on bio- or e-versions of methanol or methane by 2028.
However, the big question remains: can we make these sustainable fuels both affordable and widely available? Dual-fuel ships currently dominate the order books, capable of running on either methane, methanol, or traditional heavy fuel oil. This dual setup means the adoption of greener fuels will hinge on both price and availability. At the moment, sustainable fuels are estimated to be two to three times more expensive than their fossil-based counterparts. For shipping companies, this cost gap makes it difficult to commit to long-term supply agreements, ultimately discouraging fuel producers from investing heavily in sustainable alternatives. It’s a classic chicken-and-egg situation.
To address this dilemma, international bodies like the European Union and the International Maritime Organization could play a pivotal role in aligning supply and demand. By establishing market mechanisms—similar to those used by the European Hydrogen Bank but tailored specifically for the maritime industry—they could help stimulate investment in sustainable fuels, bridging the gap between producers and shipping companies.
On top of this, the Port of Rotterdam Authority and the Maritime and Port Authority of Singapore are also hard at work creating a safety and operational framework to encourage the acceptance and adoption of sustainable fuels. By providing clear guidelines and ensuring safe bunkering procedures for ships at port, they aim to pave the way for broader industry acceptance.
