Building transparency for investment in alternative fuel infrastructure
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Photo Credit: WPCAP
The transition to a low carbon future is one that will require considerable infrastructure investment. While the wider maritime world views this as challenging and expensive, it presents an opportunity for the marine and civil engineering world that will be tasked with this construction. While some ports are quite advanced in their planning to cater to the needs of vessels using an alternative fuel, others are still in the early stages of conversations with their stakeholders to identify which new fuels should be factored into their plans.
There is a reluctance on the part of many port authorities to invest in infrastructure that may become obsolete if another fuel rises up the ranks with shipowners, as this would not only result in a loss of market share but also leave the port with stranded assets. The issue is further complicated by uncertainty amongst shipowners, who are holding off on ordering new low-carbon-fuelled vessels until it is clear that the infrastructure to cater to these vessels exist – and also the clarity on whether the emissions from their fleets will comply with increasingly stringent emission regulations.
This uncertainty has resulted in a “chicken and egg” situation between ports and vessel owners, with both waiting for the other to make investments that will guide the market.
Bridging the conversation gap
A new tool developed by the World Port Climate Action Programme (WPCAP) in partnership with the International Association of Ports and Harbours (IAPH) aims to bridge the gap between shipowners and ports by providing an indicator to assess the current readiness of a port to cater to a specific alternative fuel – as well as its ambitions in the future. Named Port Readiness Level for Alternative Fuels for Ships (PRL-AFS), the tool was designed using a similar nine-level format to the widely accepted Technology Readiness Level (TRL) developed by NASA.
TRL is already in use amongst the marine technology companies developing future solutions for shipping, making PRL-AFS an intuitive parallel. The framework, which can be applied to any alternative fuel, will track the progress of ports and their ability to offer port call or bunkering services to vessels using specific fuels. The WPCAP Working Group for Sustainable Fuels is also creating guidance for the considerations at each of the nine levels, including safety, governance, social engagement, and commercial factors.
Namrata Nadkarni, chair of the WPCAP Sustainable Fuels working group, tells CEDA Industry News, “This tool will provide clarity for all stakeholders about the ambition of a port to use individual alternative fuels. Not only will this make it easier for a shipowner or operator to know if they can bunker their vessels with a specific fuel such as LNG or methanol along a certain route, but it will allow ports to share their ambitions about catering to ships using emerging fuels like ammonia or hydrogen in the future.”
The new tool will make clear to operators – including those managing a dredging fleet, the infrastructure that will support their vessels in the future. This information will make it easier to match vessel orders with regional investment in infrastructure and ensure that vessels are guaranteed services including bunkering.
“From the perspective of an engineering company, knowing that a port intends to invest in specific technologies or infrastructure makes it much easier to initiate conversations and to prepare for tenders ahead of issue,” Nadkarni adds.
Cees Boon from the Port of Rotterdam, who spearheaded development of the new tool, explains: “The considerations for a port call from a vessel using ammonia would be different to that for a vessel looking to bunker hydrogen or an e-methanol ship that needs repairs.”
Visual matrix
In addition to the indicator, WPCAP and IAPH have developed a useful visualisation to indicate the status of each port for each alternative fuel in a glance. The visualisation matrix provides information including current readiness level for a single fuel, the ambitions of the port and also relevant information about port space utilisation.
The matrix builds on work by IAPH Clean Maritime Fuels group had created the basic building blocks of a safety framework to address the use of alternative fuels by vessels in ports. Several maritime organisations are tackling the problem, from class societies to dedicated coalitions, and WPCAP is drawing on these resources as well as aiming to promote PRL-AFS as a tool for wider use in the industry.
The partnership with IAPH also provides a platform to bring proposals to the attention of the International Maritime Organization (IMO) as well as the wider global ports community. The working group will also continue to flesh out the guidance document for the PRL-AFS.
WPCAP’s Sustainable Fuels working group will be stress testing the PRL-AFS and accompanying guidance in the coming months and will be seeking stakeholder feedback across the decarbonisation value chain. It will also assess the applicability of the PRL-AFS tool for ports offering maintenance, repair and industrial services. Further progress will be discussed with all port CEOs later this year, followed by the first global WPCAP conference in the first half of 2023.
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