Despite the existing uncertainty in global regulations for clean shipping, some decarbonization initiatives are setting ambitious targets for transitioning to alternative fuels. One such example is the South Africa-Europe iron ore shipping route, which could feasibly deploy ammonia-fueled bulk carriers as soon as 2029 and scale toward full decarbonization by 2035. These findings are contained in a feasibility study by the Global Maritime Forum, produced in partnership with a consortium formed in 2023 to develop a green shipping corridor on the South Africa-Europe iron ore trade route.
The consortium includes Anglo American, CMB.TECH, Freeport Saldanha, Vuka Marine and Engie. The green shipping corridor being developed will link Saldanha Bay in South Africa’s Western Cape to the Port of Rotterdam in Netherlands. It will become one of the first Global South-to-North green shipping routes.
With South Africa advancing a national green hydrogen market, the maritime sector is seen to play a key offtake role. As a result, some major ports in the country are at different stages of developing green shipping fuel infrastructure. Saldanha Bay is one of the ports, offering a significant opportunity to cut emissions in the shipping sector as South Africa’s primary iron-ore export terminal.
Recently, the port appointed the Council for Scientific and Industrial Research (CSIR) to coordinate phase 1 of its Green Hydrogen Master Plan. The initiative is aimed at positioning Saldanha Bay port as a green hydrogen production and export hub. The project has been shown to be cost-competitive, especially with the conversion of green hydrogen to ammonia fuel.
According to the Global Maritime Forum study, the green hydrogen projects already underway near the ports of Boegoebaai, Saldanha and Walvis Bay are enough to meet the green corridor’s fuel demand. This includes the corridor’s high-demand scenario of 22 bulk carriers per annum by 2035. However, the study predicts that in the initial years of the green corridor operation, ammonia-fueled vessels will likely bunker in Rotterdam. As a major global fuels hub, Rotterdam is currently one of the most mature ports in terms of ammonia bunkering and safety frameworks.
In the meantime, Saldanha Bay has an opportunity to finalize infrastructure for green ammonia production. Based on its strategic location and significance in bulk shipping, Saldanha Bay by 2035 is poised to become an important global bunkering hub for green ammonia.
“However, to help Saldanha Bay transition quickly, blending public and private funding can unlock investment in infrastructure and reduce the risks of early projects,” said Shannon Neumann, Associate, Investment Facilitation at Freeport Saldanha.
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