The Week in Alternative Fuels

Here are some key developments in alternative bunker fuels from the past week.

PHOTO: Cargo terminal at Port of Singapore. Getty Images

Global South countries such as Argentina, Brazil, Chile, Colombia, Egypt and India are likely to produce e-fuels at more competitive prices than Europe, Trafigura argued in a recent white paper. The abundance of renewable energy sources in these countries makes them capable of producing large volumes of green hydrogen, the commodity trader went on to say.

As a matter of fact, the Global South is doing its part to make these claims a reality. Last week, Egypt stole the spotlight as a budding producer of e-fuels, while this week we highlight other countries in the Global South that are also paving the way for a greener future.

The first one in the limelight this week was India, where authorities announced that the ports of Deendayal and Chidambaranar would become hydrogen hubs with on-site production. The ports have also set a hairy goal of being in a position to offer ammonia for bunkering by 2025, which would make them among the world's first to do so. India also plans to set up green hydrogen bunkering and fuelling facilities in several of its major ports by 2035.

Saudi Arabia is another country in this group with green hydrogen ambitions. Saudi's NEOM Green Hydrogen Company (NGHC) is working on the construction of a new $8.4 billion green hydrogen production plant in the futuristic city NEOM, which is expected to be completed in 2026.

In the other half of the world, Denmark and Sweden were the stars this week, as Danish energy giant Ørsted celebrated an important milestone in the e-fuels segment by starting to construct its 50,000 mt/year e-methanol facility in Örnsköldsvik in Northern Sweden. The facility is scheduled to become operational in 2025.

Meanwhile, a study by the Global Centre for Maritime Decarbonisation (GCMD) estimated that up to 2 million mt/year of ammonia bunker fuel could be consumed by 2035 in the Port of Singapore. GCMD forecast the port's ammonia bunker demand to grow to 50 million mt/year by 2050 - equal to the port's current conventional bunker demand in mt.

By Konica Bhatt

Here is our selection of top five alternative fuels stories from this week:

Global South can become hub for low-cost e-fuels production – Trafigura

Indian government to fund 30% of green shipping project cost

NGHC to build $8.4 billion green hydrogen plant in futuristic Saudi city NEOM

Ørsted moves ahead with FlagshipONE project

Singapore ammonia demand could hit 2 million mt in 2035 – GCMD