China is recognized as a key player in the global movement for green maritime transport corridors, holding about one-fifth of the 21 related initiatives. However, most of these projects are in the early stages, with only one nearing operational status.
Developing Projects
According to a report released at the annual meeting of the International Maritime Transport Organization in Shanghai, of the 21 identified initiatives by the end of June 2023, 12 projects are in the initial stage, 5 projects are under feasibility review, and 3 projects are in the preparation stage. Only the Australia-East Asia iron ore corridor, which involves the use of ammonia-fueled cargo ships between the Pilbara region of Australia and China, has approached realization.
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Developments in Green Fuel Supply
The report also indicates that green fuel supply in China is highly concentrated. China holds about 80% of the global capacity for green methanol production that has received final investment decision approval and over 40% of comparable green ammonia capacity. Developing projects in China aim to produce 30 million tons of green methanol and 15 million tons of green ammonia annually by the early 2030s.
However, economic challenges remain. The cost of green methanol and ammonia is two to three times higher than conventional marine fuels. Additionally, battery-electric cargo ships are about twice as expensive as conventional ships.
Research shows that while 65% of cargo owners are willing to pay more for low-carbon transport, the average premium they are ready to pay is only 3%. The report calls for increased investment in fueling and distribution infrastructure, closer alignment between China's fuel certification standards and international standards, and policy measures to reduce the price gap.
China also established the International Green Maritime Transport Corridor Alliance in September 2023, which includes 45 companies and organizations from 12 countries to coordinate cooperation on alternative fuels, green ships, and port infrastructure.
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