In a bold bid to tackle environmental and economic challenges, China has launched a trading platform for net-zero hydrogen and its derivatives. This trailblazing step propels China to the cutting edge of the global hydrogen industry while simultaneously addressing the shipping sector’s hefty carbon footprint.
The platform is a collaborative effort involving the Shanghai Environment and Energy Exchange (SEEE), Shanghai International Port Group, China Energy Investment Group, and Shanghai Lingang Economic Development Group. Announced at a recent Shanghai-based conference, the initiative will primarily focus on certifying and trading green hydrogen, green methanol, and green ammonia within China, aiming to extend operations internationally.
The General Manager of SEEE, Liu Jie, championed hydrogen-fueled options as the “inevitable path” to the shipping industry’s green reform. The ultimate aspiration is to evolve this platform into a global nerve center for subscribing, pricing, and trading green hydrogen products.
Green hydrogen, a zero-emission fuel generated from water electrolysis using renewable energy, is the core of green methanol and ammonia production. These by-products are key to a proposed shift towards eco-friendly shipping operations.
In its national hydrogen strategy unveiled in 2022, China has expressed dedication to green hydrogen, setting ambitious production milestones into 2035. Both national and regional governments are industriously laying the groundwork for the transportation and storage of hydrogen fuels, backing the widespread implementation of these clean fuels across areas such as transportation, power generation, heavy industry, and energy storage.
China is investigating the adoption of hydrogen-based fuels in the shipping and aviation industries, which are notorious for their substantial carbon emissions—a historical moment in this journey occurred in April when China achieved its first ship-to-ship transfer of green methanol at Shanghai’s port. The country’s pioneer methanol fuel bunkering vessel, the Haigang Zhiyuan, delivered 504 tonnes of methanol to the Astrid Maersk, a methanol-powered container ship run by A.P. Moller-Maersk.
A report from the International Energy Agency (IEA) highlights that international shipping and aviation were accountable for around 4% of the 36.8 billion tonnes of worldwide carbon dioxide emissions in 2022. Without intervention, these sectors may generate 40% of all global carbon emissions by 2050. Green hydrogen and its derivatives, through their carbon-free production and combustion cycles, are crucial in curtailing these emissions.
Hydrogen and hydrogen-based fuels constitute less than 1% of the energy consumed in shipping and aviation. Nevertheless, the IEA anticipates this proportion will be amplified to approximately 10% by 2030 and exceed 50% by 2050.
