A new report has found that adopting methanol as the primary fuel for voyages between the Port of Tyne, Newcastle, UK, and the Port of IJmuiden, Amsterdam, the Netherlands could avoid up to GBP 420 million in future regulatory costs and deliver an 80 percent reduction in greenhouse gas (GHG) emissions.
Green shipping corridors are specific routes where vessels use low-emission propulsion.
The study, led by Ricardo, an environmental, energy, and engineering consultancy and world leaders in maritime decarbonisation, assessed the technical and commercial feasibility of introducing a green shipping corridor between Newcastle and Amsterdam.
Looking at the potential of both methanol and onshore power supply as alternative future fuels for vessels operating between the ports, the study found significant reductions in emissions with the adoption of methanol, reducing GHGs by 70 percent, and onshore power supply, reducing GHGs by an additional 10-15 percent.
Battery storage could also be adopted to support energy demand. The study also found significant financial savings, primarily through avoided regulatory penalties, which would help to offset any needed investment in new technology.
Green shipping corridors represent a viable alternative to traditional carbon-heavy fuels in an industry that is considered hard to decarbonise. The Port of Tyne – Port of IJmuiden route is not only a suitable candidate for the world’s first green shipping corridor but will also inform similar projects throughout Europe, said Matt Moss, Ricardo Maritime Sustainable Transport Consultant.
The report’s findings were validated by the primary ferry operator between the ports, DFDS’s own internal analysis, which supported the economic feasibility of transitioning the Tyne- IJmuiden route to alternative fuels.
DFDS plans to invest in alternative fuel-powered vessels for the corridor.
Our ambition is to decarbonise maritime transport along the Amsterdam–Newcastle corridor. This includes investing in new vessels and collaborating with partners to accelerate infrastructure development and the production of low-emission fuels, which is crucial for a successful transition, said Teun-Wim Leene, Amsterdam-Newcastle Route Manager at DFDS.
Part funded by UK SHORE
In March 2022, the UK Government announced the biggest government investment ever in the UK commercial maritime sector, allocating GBP 206 million to UK SHORE, a new programme within the Department for Transport (DfT) focused on decarbonising the maritime sector.
The Port of Tyne – Port of IJmuiden study was part-funded by the UK Government’s maritime decarbonisation project programme UK SHORE, which aims to reduce emissions, fuel innovation, and create new jobs in the industry.
Transforming the Tyne–IJmuiden route into one of the world’s first green shipping corridors fits seamlessly with our ambition to develop Energy Port IJmuiden. This project has strengthened collaboration across ports, operators, engineers, and public bodies, and the support of Innovate UK and the Netherlands Enterprise Agency has been instrumental. With methanol-powered vessels and onshore power, we are taking a decisive step toward a cleaner, future-ready North Sea connection, said Tjeerd van der Voorn, CEO, Zeehaven IJmuiden N.V. – Port of IJmuiden.
Port of Tyne CEO Matt Beeton welcomed the study’s results as another important step toward establishing a North Sea green shipping corridor.
We have a vision to achieve a net-zero port operation, supported by an e-fuels hub, alongside a thriving ferry route to the continent for both passengers and freight. The transition to a cleaner future will only happen through genuine collaboration right across the maritime value chain. This report’s findings give us confidence that green shipping is within reach and that the North East can be at the forefront of the change, said Matt Beeton.
UK SHORE is delivering a suite of interventions throughout 2022-2025 aimed at accelerating the design, manufacture, and operation of UK-made clean maritime technologies and unlocking an industry-led transition to Net Zero.
The program includes the flagship multi-year Clean Maritime Demonstration Competition (CMDC), which provides match-funding to help bring pre-commercial technologies closer to market readiness.
CMDC5:IGCF follows the successful first four rounds of the CMDC, which allocated over GBP 128 million to 138 projects. CMDC1 was launched in 2021, before UK SHORE.
CMDC5:IGCF has allocated GBP 1.5 million for feasibility studies that examine green corridor routes between the UK and international partner countries between 2024 and 2025.
