Global Maritime Forum Highlights Kenya’s e-Fuel Potential in New Insight Brief

(Global Maritime Forum) A new insight brief published today by the Global Maritime Forum highlights Kenya’s potential in the production and use of zero-emission fuels for the shipping industry. The report titled ‘Powering clean shipping: Kenya in the global power-to-x economy’ examines the country’s renewable energy resources and opportunities to develop scalable electro-fuels such as e-ammonia and e-methanol.

The study has been funded by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH’s International Power-to-X Hub and written in collaboration with the Kenya Maritime Authority, IMO GreenVoyage2050, the University of Maritime Advisory Studies (UMAS), and national expert Dr. Evan Murimi. It draws on extensive research, including workshops in Mombasa and Nairobi, interviews with over 20 government, industry, and civil society stakeholders, and detailed economic and technical analysis.

Kenya’s abundant wind, solar, and geothermal resources provide a strong foundation for the competitive production of e-fuels, with the potential to supply both domestic maritime demand and international markets. The brief highlights key strategic priorities for unlocking this potential, including fostering partnerships across public and private sectors, stimulating demand through green shipping corridors, and advancing pilot projects at Kenyan ports ahead of 2030.

“Kenya is committed to harnessing its abundant renewable resources to drive a green transition in shipping, starting with our ports,” said Justus Omae Nyarandi, Director General of the Kenya Maritime Authority. “By advancing e-fuels through power-to-x technologies, we can respond to the rising global demand for low-carbon shipping and prepare for the International Maritime Organization’s mid-term measures. Developing a green shipping corridor offers Kenya the opportunity to stimulate demand for these fuels while strengthening trade routes with our international partners. For exports such as cut flowers, coffee, and tea, this transition will not only reduce emissions but also create wider benefits for Kenyan communities.”

The brief represents a year-long collaboration aimed at accelerating Kenya’s transition to a sustainable maritime future. READ MORE

Excerpt from Global Maritime Forum: Several factors, if undertaken by the Kenyan Government, would support these objectives:

1. Creating policies and regulations targeted at green hydrogen and e-fuel project delivery, supporting and enabling the maritime sector as an offtaker by

→ incentivising the uptake of e-fuels and streamlining the processes for their production and use, including land rights, permitting, and development of enabling infrastructure; and

→ improving port readiness by developing port regulations supportive of increased e-fuel uptake and use.

2. Developing measures to address the cost gap between Kenyan produced e-fuels and conventional fuels, including through

→ global climate finance sources like the Green Climate Fund, the EU’s Global Gateway Green Shipping Corridor Initiative or as part of the just and equitable transition (JET) requirements under the IMO’s Net Zero Framework;

→ risk-sharing mechanisms or blended finance vehicles with the private sector; and

→ lowering investment costs, including through reducing the cost of capital by addressing macroeconomic and project-level factors.

3. Preparing for and enabling a market transition to e-fuels and maximising the benefits for the Kenyan economy through → demonstration of e-fuel projects,

4. Expanding international partnerships to overcome universal challenges, including e-fuel projects reaching final investment decisions, port readiness, and re-training/upskilling of workers involved in their production and application.

1. Sets strategic goals for developing e-fuel use in the maritime sector, including exploring Kenya’s potential role as a future regional bunkering hub.

2. Activates motivated industry stakeholders to connect significant interest in e-fuel production with the maritime sector (ports, shipping operators) as an offtaker, building on activities led by organisations such as the Kenya Green Hydrogen Association.

3. Focuses on developing the opportunities and overcoming the key challenges in the identified priority routes when further exploring the feasibility of a green corridor.

→ Leveraging the appetite of cargo owners to support a modal shift of cut flowers from air to sea freight and pay a premium for e-fuel production in Kenya, including through a book-and-claim system;5

→ Considering a focus on exporting e-fuels initially, to capitalise on policy incentives offered, for example by the EU, whilst building out Kenyan production and stimulating demand domestically;

→ Setting out a timeline and initiating delivery of e-fuel pilots at Kenyan ports before 2030. Lamu Port may be taken into consideration as a promising location for these pilots, with a focus on regional trade at the outset to develop capacity. READ MORE