Last summer we reached out to Deniz and UMAS to help us understand the cost of the "first mover" action we're advancing via Green Corridors. And I think the title of the analysis below - "Calculating the cost gap" -- really undersells what she did for us and for Green Corridors more broadly. The approach UMAS took was not simply to "calculate" the cost of ammonia-powered shipping of iron ore, but to really "understand" that cost in context - the mix of policies, technologies and different strategic options for producing and distributing new shipping fuels that determine what various ambitious first mover actions cost compared to the alternatives. It was immediately apparent to us that the UMAS methodology was breaking new ground in understanding the economics of green shipping corridors. It's a great piece of work and we really hope others will emulate this approach.
I’m pleased to share the work I’ve been undertaking alongside Global Maritime Forum as part of UMAS. Our latest report, “Calculating the cost gap: Western Australia–East Asia iron ore green shipping corridor”, presents a focused assessment of the key sources, costs and sensitivities involved in delivering green ammonia to fuel this corridor. We adopted a project-based approach to costing the rollout of a zero-emission fleet across these routes, and we did so within a compliance-shaped framework as actions can no longer be weighed against business-as-usual metrics and decisions must be informed by commercial evaluations that reflect the arc of future regulation. This contribution is just one piece in the green shipping corridor puzzle that Global Maritime Forum is steadfastly building. The journey on this transition is complex, but with the right mix of technology, policy, and collaboration, it is entirely achievable. Reach out to find out more or access the full paper here: https://lnkd.in/eAUjPgPq #Decarbonisation #GreenShipping #sustainableshipping #GMF