Ports of Melbourne and Shanghai plan green shipping corridor

The partnership aims to accelerate the uptake of low-emission marine fuels along a key Asia–Pacific trade route between Australia and China.

IMAGE: Aerial view of Melbourne. Port of Melbourne Authority

The Port of Melbourne and the Port of Shanghai will work with Chinese shipping firm Cosco Shipping and methanol producers HAMR Energy and ABEL Energy to assess the feasibility of green fuel use between the two ports.

The partners have not yet specified which fuels the corridor will promote, but biomethanol is likely to feature since several production facilities are planned in Australia.

For instance, HAMR Energy is developing a 300,000 mt/year biomethanol plant in Portland, on the southwest coast of Victoria.

ABEL Energy is targeting a combined output of up to 600,000 mt/year through two of its planned biomethanol plants - one in Bell Bay (200,000 mt/year) and another in Townsville City (400,000 mt/year).

Both firms aim to supply part of their output for marine bunkering, to meet an expected increase in demand from vessel operators like Cosco Shipping.

Cosco Shipping has ordered at least 12 methanol-capable containerships and plans to retrofit another four. It has also ordered 10 ammonia- and methanol-ready bulk carriers through its subsidiary, COSCO Shipping Development.

“Given Australia’s position as an island nation that heavily relies on sea freight, we have a key role in global efforts to decarbonise shipping,” said Saul Cannon, chief executive of the Port of Melbourne.

By Konica Bhatt

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