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Thursday, September 16, 2021 

Mexico is well-positioned to build a valuable zero carbon shipping fuels sector, as it has an abundance of renewable energy potential along with direct access to busy shipping routes, according to a study for the P4G Getting to Zero Coalition Partnership conducted by Ricardo and Environmental Defense Fund.

The production of green hydrogen-derived shipping fuels could help Mexico meet its decarbonisation targets by catalysing renewable energy generation supply chains, skills, and economies of scale, which support the wider adoption of new technologies. The study says that well-placed countries like Mexico will only reap the benefits if governments and the shipping industry coordinate efforts for effective climate regulation to expedite the provision of fuels and infrastructure.

“Our study has found that Mexico’s access to busy shipping routes and abundant renewable energy potential puts it in a good position to help drive the zero carbon fuel market. Mexico can potentially supply both its domestic electrical demand as well as the production of zero carbon fuels to supply commercial vessels bunkering in its ports by use of renewable energy,” said Olivia Carpenter-Lomax, Future Energy Specialist and Project Lead, Ricardo.

Within the next decade, the shipping industry is expected to start to replace traditional heavy bunker fuel with new zero carbon shipping fuels generated from renewable energy to meet its decarbonisation targets.

“The shift towards zero carbon shipping needs to accelerate within the next decade and effective regulation will also create opportunities for countries to catalyse and benefit from this necessary transition. By moving early, Mexico can become a central actor in supplying the global demand for green fuel and attract investment of US$ 7-9bn by 2030,” said Panos Spiliotis, Global Climate Shipping Manager, Environmental Defense Fund.

The report finds that the geographical location, economic status and strong trading relations put Mexico in a favorable position to help drive the zero carbon fuel market and supply a growing global demand.

“Mexico’s access to busy trading routes has made it a major trading hub. This makes Mexico an advantageous location to establish a zero carbon shipping sector, as the many international vessels bunkering in Mexican ports need to be able to refuel along their journey,” said Ingrid Sidenvall Jegou, Project Director, Global Maritime Forum.

The abundance of renewable energy resources in Mexico means that shipping fuels can be derived from renewable electricity generation. The study reveals that several zero carbon fuels have the potential to be used to decarbonise maritime shipping.

According to the Global Maritime Forum, for shipping to address its climate problem, it is crucial that governments and the global shipping sector coordinate efforts to ensure the availability of green fuels and infrastructure, and standards should be to encourage the zero-emission transition of both vessels and ports. International vessels adopting zero carbon fuel bunkering must have the opportunity to refuel along their journey. By moving early, Mexico can set the trend for electro fuel adoption and position itself as an important hub along global zero carbon shipping routes.

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