Canada boosts green shipping corridor projects with fresh funding

July 18, 2024, by Fatima Bahtić

The Government of Canada has awarded $1.7 million in funding to fourteen projects under the Green Shipping Corridor Program’s Clean Vessel Demonstration program.

Decarbonizing the marine sector is a part of the Government of Canada’s climate action plan. Achieving net-zero plans will require sector-wide collaboration and innovation to reduce the impact of shipping emissions on surrounding communities and ecosystems while supporting economic growth.

According to government officials, the new funding will help spur the launch of the next generation of clean ships. Furthermore, it will cover the investment in the shore power infrastructure and support low-emission and low-noise vessels at ports.

Through programs like the Green Shipping Corridor Program, Canada continues working with Indigenous groups, government, industry, and environmental stakeholders to protect the environment and achieve net-zero emissions by 2050.

“Canadians across the country rely on marine shipping to deliver products we use every day in an affordable, safe, environmentally friendly, and efficient way. The projects will grow a strong economy and get people the goods they need, while protecting our environment,” Pablo Rodriguez, Minister of Transport, said.

“Our Government is committed to protecting and preserving the environment from coast to coast to coast. The Clean Vessel Demonstration Stream will increase readiness by using leading-edge low and zero-emission vessel technologies. It will help address potential barriers to the deployment of clean vessel innovations in Canada and build the capacity of Canadian industry to adopt decarbonization solutions for their vessels, advancing our agenda for a cleaner and greener future in Canada,” Vance Badawey, Parliamentary Secretary to the Minister of Transport, noted.

“Supporting the Green Shipping Corridor Program is an important step towards a sustainable future for our community and our port. By investing in clean ships and prioritizing low-emission vessels at our port, we are reducing environmental impacts while fostering local economic growth,” Chris Bittle, Parliamentary Secretary to the Minister of Housing, Infrastructure, and Communities, commented.

New projects

Transportation is Canada’s second-largest source of greenhouse gas emissions and accounts for one-quarter of all greenhouse gas emissions in Canada. Out of that, shipping emissions accounted for close to 3% of emissions globally in 2018.

To achieve the net-zero goal, funding was awarded to several project proposed by local companies.

Shipping company Algoma Central Corporation received funding for numerous projects, including:

a feasibility study into implementing wind-assisted propulsion system on Canadian bulk carriers. The project will perform safety assessments for wind assist systems considered by the study;
development of a concept design and carrying out a feasibility study for methanol-fueled vessels;
exploring the technical and economic feasibility and emission reduction benefits of retrofitting Algoma vessels to use shore power;
technical work to ensure a wider suite of biofuels can be used that will impact scalability, economic viability, and environmental performance of a broader mix of low carbon fuels, and
a project aimed at defining the powering of the tug while utilizing the barge as the primary fuel storage.

Meanwhile, FedNav, Canada’s largest bulk shipping company, received support to conduct a feasibility study for installing a fuel cell power system on board a bulk carrier and a feasibility study for installing a battery-based energy storage system on board a Canadian bulk carrier.

Moreover, the firm will carry out a feasibility study for installing a wind-assisted propulsion system (WAPS) on a bulk carrier.

Other companies that received the money for their projects include CSL Group, Mersey Seafoods, Miawpukek Horizon Corp., Oceanex, Seaspan Ferries and Transport Desgagnés.