Sustainability news: Port of Rotterdam

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To continue on the same topic as last week, today’s article aims to give an update on the developments of sustainability in the Port of Rotterdam. In the past month, two major milestones have been reached.

H2Global Pilot Auction: First Renewable Hydrogen Carrier Ammonia Supply for the EU via the Port of Rotterdam

Hintco GmbH has announced Fertiglobe as the winner of the inaugural H2Global pilot auction for renewable ammonia, funded by the German Government. Fertiglobe, a strategic partnership between ADNOC and OCI, will begin producing renewable ammonia for delivery in 2027, with a maximum contract value of €397 million. The renewable ammonia will be transported to the Port of Rotterdam and sold by Hintco in standardized quantities through annual auctions. Initial deliveries are expected to start at approximately 19,500 tons in 2027, with the total supply potentially reaching 397,000 tons by 2033, depending on production start dates and supply availability.

Hintco serves as a ‘market maker,’ facilitating the growth of emerging markets for clean hydrogen and low-emission fuels. It purchases hydrogen from early production facilities and sells it to end-users, with grants helping to bridge the gap between supply and demand prices. At this stage, buyer and seller expectations regarding price, volume, and contract terms can vary significantly. To address this, Hintco employs H2Global’s double-auction mechanism to align these expectations, thereby reducing risks and providing the certainty needed for producers to secure financing and for end-users to purchase these products on favorable terms. This initial lot in the double-sided auction is funded by a €900 million contribution from the German Government to compensate for price differences.

Fertiglobe will source renewable hydrogen from Egypt Green Hydrogen to be used as feedstock for producing renewable ammonia at its existing ammonia plant in Ain Sokhna. The pilot auction set the first price benchmark, with a contract price of €1,000 per ton (including delivery to Europe) and a net price of €811 per ton for renewable ammonia. The renewable ammonia produced will achieve a reduction in emissions intensity of approximately 75.5% compared to ammonia made from unabated fossil fuels. The emissions savings from the maximum contractual supply commitment (397,000 tons over seven years) are equivalent to the annual emissions of 62,000 cars.

X-Press Launches the First of 14 Methanol-Powered Vessels

In Rotterdam, the Eco Maestro was inaugurated as the first dual-fuel container vessel to operate on methanol. This vessel is the first of fourteen methanol-powered ships owned by Singapore’s X-Press Feeders, all of which will be based in Rotterdam.

X-Press Feeders plans to deploy these “green vessels” primarily on European routes, establishing the first network of feeder ships in Europe running on green methanol. The Taiwanese container shipping company Evergreen Feeders has partnered with X-Press Feeders for this initiative. Currently, the network includes two liner services: the Green Finland X-Press (GFX), which operates from Rotterdam to Antwerp, Helsinki (Finland), Tallinn (Estonia), and HaminaKotka (Finland), and the Green Baltic X-Press, which also serves Klaipėda (Lithuania) and Riga (Latvia), alongside Rotterdam and Antwerp. X-Press Feeders selected the Port of Rotterdam as the home base for these vessels because it offers green methanol bunkering facilities. Last year, the company secured a deal with Dutch fuel supplier OCI Global for this purpose. The bunkering will be handled by Unibarge and TankMatch tankers.

The Port of Rotterdam Authority is enthusiastic about this development, as it aligns with their efforts to enhance the sustainability of maritime shipping. The Authority supports such initiatives by promoting quality certifications like the Green Award and Environmental Ship Index, and by encouraging the use of more sustainable marine fuels.

References

Port of Rotterdam . (2024, July 15). H2Global pilot auction: first renewable hydrogen carrier ammonia supply for EU via Port of Rotterdam. Retrieved from Port of Rotterdam : https://www.portofrotterdam.com/en/news-and-press-releases/h2global-pilot-auction-first-renewable-hydrogen-carrier-ammonia-supply-eu

Port of Rotterdam . (2024, Juy 22). X-Press puts into operation the first of 14 methanol vessels. Retrieved from Port of Rotterdam : https://www.portofrotterdam.com/en/news-and-press-releases/x-press-puts-operation-first-14-methanol-vessels

Photo:

26075913423_d8e5dcf5b9_b.jpg (1024×576) (staticflickr.com)