South Africa’s abundant renewable energy resources, strategic maritime location, and comprehensive port system position it to become a global supplier of alternative marine fuels. Marine fuel - a key downstream opportunity for the country’s green hydrogen ambition - can unlock an additional 2-million-metric-ton hydrogen market, creating local value. The document presents a demand analysis for the supply of hydrogen-based marine fuels at South Africa’s commercial ports and a detailed case study for the Port of Saldanha. The case study evaluates the feasibility of a candidate large-scale investment project to produce zero carbon ammonia, aimed at reducing ship emissions. The report also details financial-, policy- and infrastructure solutions essential for establishing a market for green marine fuels in South Africa.
Authors
Organizations mentioned
- Citation
- “ Salgmann, Rico ; Weidenhammer, Maximilian ; Englert, Dominik . 2024 . Creating a Green Marine Fuel Market in South Africa . © Washington, DC: World Bank . http://hdl.handle.net/10986/42178 License: CC BY 3.0 IGO . ”
- Collection(s)
- Mobility and Transport Connectivity
- Identifier externaldocumentum
- 34393183
- Identifier internaldocumentum
- 34393183
- Pages
- 152
- Published in
- United States of America
- Report
- 193625
- Rights
- CC BY 3.0 IGO
- Rights Holder
- World Bank
- Rights URI
- https://creativecommons.org/licenses/by/3.0/igo
- UNIT
- Infra - Global Knowledge (ITRGK)
- URI
- https://hdl.handle.net/10986/42178
- date disclosure
- 2024-09-20
- region geographical
- World
- theme
- Climate change,Mitigation,Energy,Environment and Natural Resource Management
Files
Table of Contents
- Table of Contents 3
- Acknowledgments 9
- Acronyms 11
- Glossary 14
- Executive Summary 15
- By 2030 South Africa can unlock around 200k tons of hydrogen production demand from ships sharply rising to up to 2 million tons by 2050. 19
- Introduction 26
- South Africas green 29
- 2 1 Fueling decarbonization 30
- By 2050 South Africas green hydrogen economy is projected to contribute 3.6 percent to GDP and generate 380000 jobs. 30
- 2 2 Leveraging opportunities confronting challenges 31
- 2 3 Risk spotlight Electricity crisis 33
- Estimates show that loadshedding result in a negative economic impact of up to -3.2 percentage of South Africas GDP. 33
- Hydrogen pathway for international shipping 36
- 3 1 How fuel and policy pathways converge 37
- Green ammonia or methanol are the most promising hydrogen- derived fuels for ocean-going ships. 37
- For the sector to meet its 2030 target around five million tons of green hydrogen would be needed for shipping alone. 38
- 3 2 South Africas maritime sector 40
- 3 3 Risk spotlight Maritime sector challenges 40
- With a 2798 km coastline along the Atlantic and Indian Oceans South Africa is the largest container bulk and break-bulk hub in sub-Saharan Africa. 40
- Maritime as a catalyst for South Africas green 42
- 4 1 The marine fuel market and green hydrogen 43
- Box 1 Bunkering 44
- 4 2 Approach 44
- 4 3 Energy demand 47
- 4 4 Forecast of demand for hydrogen-based marine fuels 54
- The eastern ports of Durban and Richards Bay are projected to be the largest consuming region of these new fuel types. 54
- 4 5 Hydrogen production demand 65
- Producing green shipping 69
- 5 1 Approach and design basis 70
- 5 2 Technical development 88
- Box 2 Haber-Bosch Process 99
- 5 3 Financial analysis 110
- 5 4 Economic analysis 115
- 5 5 Project risks 117
- 5 6 Project execution 118
- 5 7 Delivery schedule 121
- 5 8 Conclusions of the case study 121
- Harboring hydrogen 124
- Ports as green energy hubs 124
- 6 1 Three roles for ports 125
- South Africa ranks among the top 10 countries that as a group is projected to supply up to 58 percent of the global ammonia marine fuel market. 126
- 6 2 National priorities and port authorities 127
- 6 3 Incentives and cost reduction 129
- 6 4 Green corridors 130
- Financing and funding 131
- 7 1 Challenge 132
- 7 2 Financing and funding sources 135
- A smooth and equitable maritime energy transition for countries can only be achieved if a critical mass of first-mover projects reaches financial close soon. 135
- 7 3 Risk spotlight Fiscal considerations 139
- Looking ahead for 141
- Bibliography 144
- Image Credits 151