South Africa, Fueling the Future of Shipping
The transition to a carbon-neutral future raises questions on how this will be achieved. Transport infrastructure continues to rely heavily on fossil fuels, with maritime trade acting as no exception. The South Africa: fueling the future of shipping report issued by Ricardo and the Environmental Defense Fund highlights the chance which South Africa has in forming a carbon-neutral maritime fuel industry which will play to the strengths of the country. Whilst the report focuses on using renewable energy and batteries, green hydrogen and green ammonia as fuels, there still lies scope for other fuels such as green methanol, biofuels, and blue hydrogen and ammonia.
Highlights in the report find that:
South Africa’s role as a major shipping hub located between Europe, Asia and South America primes it well to export carbon-neutral fuels and to refuel ships capable of using their fuel,
Despite current efforts to grow its solar and wind energy stymied from government inertia, South Africa holds adequate natural resources to create carbon-neutral energy for both the industry and for its own energy needs,
The creation of a carbon-neutral fuel industry will assist South Africa in its goal to reach net-zero carbon emissions by 2050.
This opportunity to fuel a zero-carbon future from South Africa’s ports will require an investment in the upgrading of port infrastructure, the creation of energy plants, and the adoption of new forms of energy creation as highlighted by the report.
This opportunity to push for zero-carbon fuel in the maritime industry has the opportunity to attract government support, as its efforts to transition to a carbon-neutral future have stalled.
South Africa is the 14th largest producer of greenhouse gases globally and relies on coal to power 87.6% of its electricity. Whilst there has been growth in wind, hydro and solar energy to help fuel the country’s power grid, the lack of government initiative in creating carbon-neutral energy sources provides private business the opportunity to step up in its place. Taking advantage of the country’s vast energy potential can power both the maritime fuel industry and the country’s overall power grid.
Concerns around the safety of alternative fuel sources should be viewed in the same light as the safety issues faced through currently used fuels. This will provide an opportunity for industry to create new processes in ensuring the safety of workers and will necessitate the building or refurbishing of infrastructure to support fuel storage.
Alongside the growth of zero-emission fuel, the Institute for Security Studies highlights the need for growth in Africa’s seafaring capabilities, with the African Continental Free Trade Area (AfCFTA) encouraging cross-border trade on the continent. With in-land infrastructure between member states lacking, sea-based trade within the AfCFTA acts as the cheapest form of goods transport, irrespective of whether member states are landlocked. This expected growth in trade between AfCFTA member countries will drive the need to develop infrastructure around ports, which will also need to provide fuel capacity for ships.
This opportunity to develop ports both in South Africa and throughout the continent will complement the need for growing energy usage in the industry and will assist economies within the AfCFTA to boost physical trade between member countries.