Leading the Way for Green Shipping Corridors in the UK

September 28, 2023

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(Port of Tyne) The Clean Tyne Shipping Corridor project is a collaboration between the Port of Tyne, Arup, Connected Places Catapult, EDF Energy R&D UK, Lloyd’s Register, Newcastle University and the North East LEP.Green shipping corridors, which use zero-emission fuels and technologies along maritime trade routes between two (or more) ports, can encourage the early and rapid adoption of alternatives to petroleum-based fuels in the maritime industry.The Clean Tyne Shipping Corridor project is a feasibility study to establish a green shipping corridor from the Port of Tyne with the vision to join up with the European Green Corridors Network.

Study on decarbonisation of maritime industry highlights collaboration and investment as key.

The Port of Tyne, working with Connected Places Catapult and partners Arup, Lloyds Register, EDF R&D UK, Newcastle University and the North East LEP, has published the results of a feasibility study looking at the decarbonisation of the maritime industry through the creation of green shipping corridors, and the adoption of scalable zero-emission energy sources.

The Clean Tyne Shipping Corridor Project – funded by the Department for Transport and delivered in partnership with Innovate UK as part of the Clean Maritime Demonstration Competition Round 2 (CMDC2) – sets out the opportunities and economic and environmental benefits of creating a new, green shipping corridor from North-East England that links the region with the European Green Corridors Network

The study also explores the current use of alternative fuels in the shipping industry, and some of the challenges the sector faces in transitioning from conventional fuels to net zero carbon fuels like methanol, hydrogen, and ammonia.

It is hoped the study, and the accompanying roadmap, will create opportunities for UK ports - including the Port of Tyne - to lead shipping’s transition to net zero, which currently accounts for approximately 3% of annual CO2 emissions globally.

Dr Eleni Bougioukou, Innovation Manager at the Port of Tyne, said: “Through The Clean Tyne Shipping Corridor Project we have been investigating what technology, infrastructure investment, and interventions are needed to create a green shipping corridor from the Port of Tyne to Rotterdam using renewable methanol.

“One of the biggest challenges we have found is the current cost differential between conventional and zero emissions fuels. The cost of alternative fuels in the maritime sector is prohibiting the pace of decarbonisation. There is also a need for greater investment in research, innovation, and digital adoption to help improve technologies that increase productivity throughout green corridors, ensuring they generate a positive return on investment.

“Despite some of the challenges, green corridors provide a huge opportunity to transform the current model of shipping by investing in staff, skills, and infrastructure. Working collaboratively to develop and share facilities, aggregate demand for future fuels, and align funding strategies, we can position the UK at the forefront of green shipbuilding and maritime technology.”

The study explores the technical, strategic, and commercial barriers and enablers to creating a green shipping corridor in North-East England. It goes on to look at the economic and regulatory feasibility of the project, and the opportunities to attract inward investment.

Maritime Minister Baroness Vere said: “The UK maritime sector is a world leader in green shipping practices, but we must decarbonise if we are to reach net zero by 2050 and the Port of Tyne is leading the way.

“These green corridors will have countless benefits to the economy - creating highly skilled jobs and supporting the levelling up of crucial coastal communities – while showing how the industry can take the lead in our green transition, thanks to government funding.”

The Clean Tyne Shipping Corridor Roadmap outlines a series of milestones and activities that the Port of Tyne, its customers, and the green methanol supply chain, will need to deliver to establish the Port as a green methanol bunkering hub.

Compiled through stakeholder engagement, literature review, and analysis of port and vessel-calling data, The Clean Tyne Shipping Corridor Project provides the roadmap to create more green shipping corridors in ports across the UK and encourage the early adoption of alternatives to petroleum-based fuels in the maritime industry.

Mark Wray, Ecosystem Director for Maritime and Ports at Connected Places Catapult, said: “The amount of CO2 emissions from shipping is expected to double by 2050 if the sector does not take steps to reduce emissions. The Clean Tyne Shipping Corridor Project has been successful in demonstrating the viability of decarbonisation in the maritime industry, and highlighting the huge opportunity provided by the growing demand for alternative fuels.

“The Clean Tyne Shipping Corridor Roadmap sets out the short, medium, and long-term actions that will address methanol production and supply; the decarbonisation of vessels; and the expansion of Port and bunkering infrastructure to successfully deliver a Tyne-Rotterdam green shipping corridor.

“This roadmap can be expanded to other ports across the UK, helping lead the decarbonisation of the UK maritime industry, and support the delivery of the UK’s net zero targets.

“We hope this will be a catalyst for future collaboration between our two great sea faring nations on establishing green shipping corridors across the North Sea and English Channel.”

James Lovett, Innovation Lead – Future Maritime Technologies at Innovate UK, said: “The Clean Tyne Shipping Corridor project is a great example of the maritime industry coming together to research the green shipping corridor concept. Through this Department for Transport funded project, the Port of Tyne and project partners have demonstrated they’re putting action behind the UK’s commitments at COP26 and COP27 around the Clydebank Declaration.

We’re excited to see the project has created a series of follow-on activities that the Northeast can follow. The Port of Tyne and partners are one step closer towards bringing the green corridors concept to reality.”

Dr Kayvan Pazouki, Senior Lecturer and Associate Dean of Education (PGT), Marine, Offshore and Subsea Technology, School of Engineering at Newcastle University, said: “Collaboration across the whole supply chain and the development of key infrastructures and processes have stood out as the key elements for the successful establishment and operation of a Green Shipping Corridor and wider scaled up green shipping activities in the northeast of the UK and we look forward to working with the Port and its partners to work towards our net zero ambitions.”

Chris Bell, Senior Consultant at ARUP, said: “The Clean Tyne Shipping Corridor was a key opportunity for cross value chain stakeholders to come together and explore the art of the possible, all aligned around the need for rapid action on maritime decarbonisation.
We were able to bring our international experience of green corridor feasibility and energy supply studies at ports to this short sea route context, where numerous strategies for fuel supply and bunkering needing to be explored.
The study shows that a holistic view of the fuel production, bunkering and vessel system is required to examine the opportunities at the Port of Tyne and regionally. There’s an opportunity for the NE to be a leader in UK maritime decarbonisation, with the right public and private actions. We’re looking forward to seeing ideas translate to action in the near term!”

The Clean Tyne Shipping Corridor project was awarded over £390k of UK Government funding from Round 2 of Clean Maritime Demonstration Competition (CMDC2). It aims to establish at least one of the six green corridors pledged in the Clydebank Declaration at COP26 by 2025.

The full report is available to read at https://cp.catapult.org.uk/report/clean-tyne-shipping-corridor-roadmap/

For more information about The Clean Tyne Shipping Corridor project, visit www.portoftyne.co.uk

The consortium of partners leading The Clean Tyne Shipping Corridor Project are Port of Tyne, Connected Places Catapult, EDF R&D UK, Lloyds Register, Newcastle University, Arup and the North East Local Enterprise Partnership.

The Clean Tyne Shipping Corridor Project is part of the Clean Maritime Demonstration Competition Round 2 (CMDC2), which was launched in May 2022, funded by the Department for Transport, and delivered in partnership with Innovate UK. As part of the CMDC2, the Department allocated over £14m to 31 projects supported by 121 organisations from across the UK to deliver feasibility studies and collaborative R&D projects in clean maritime solutions.

The CMDC2 is part of the UK Shipping Office for Reducing Emission’s (UK SHORE) flagship multi-year CMDC programme. In March 2022, the Department announced the biggest government investment ever in our UK commercial maritime sector, allocating £206m to UK SHORE, a new division within the Department for Transport focused on decarbonising the maritime sector. UK SHORE is delivering a suite of interventions throughout 2022-2025 aimed at accelerating the design, manufacture and operation of UK-made clean maritime technologies and unlocking an industry-led transition to Net Zero.

What is a green shipping corridor?

Green shipping corridors are end-to-end decarbonised maritime routes, including vessels, running on a scalable net zero energy source and landside infrastructure available at each port. The aim is to increase the uptake of zero-emission fuels on these corridors to create secondary effects that reduce shipping emissions on other routes. READ MORE