CEM adopts new initiative for scaling low-carbon fuel production

The Clean Energy Marine Hubs Initiative (CEM-Hubs), the first-of-its-kind platform that brings together the private sector and governments across the energy-maritime value chain to transform maritime transportation and production hubs for future low-carbon fuels, has been adopted by the Clean Energy Ministerial (CEM).

The CEM adopted the new initiative to scale low-carbon fuel production on 20 July at global energy summit in Goa, India.

The CEM-Hubs initiative is initially backed by Canada, Norway, Panama, Uruguay and the United Arab Emirates (UAE) in partnership with the International Chamber of Shipping (ICS) and the International Association of Ports & Harbors (IAPH).

It is also supported by the International Renewable Energy Agency (IRENA) and the Global Centre for Maritime Decarbonisation (GCMD).

Participants have convened in Goa for the first-ever CEM-Hub meeting and the initiative was adopted less than a year after it was first presented. The CEM-Hubs initiative and progress will be featured at the next COP28 in Dubai.

• Panama, Uruguay, and Norway join Clean Energy Marine Hubs initiative at COP27
• GCMD joins CEM Hubs to support use of low-carbon fuels

The energy maritime value chain is far from ready to transport the influx of low-carbon fuels that are expected between now and 2050. To accommodate demand, the shipping industry is expected to transport at least 50% of all traded low-carbon fuels by 2050, according to IRENA. But the production centres, vessels and port infrastructure required to accommodate expected demand do not currently exist at a commercial scale.

Jean-François Gagné, Head of Secretariat, Clean Energy Ministerial, said: “Ports, shipping, and the logistics network need to be an integral part of the global clean energy transition. The Clean Energy Marine Hubs Initiative is a truly public-private platform between energy, maritime, shipping and finance communities. It represents a unique opportunity to develop concrete implementable actions to ensure greener supply chains globally.”

The Honourable Omar Alghabra, Canada’s Minister of Transport, commented: “ … This vital initiative will reinforce the pivotal role our ports and marine sector will play in advancing the global energy transition. By facilitating the secure and efficient transportation of new clean energy resources, including hydrogen, ammonia, and renewable diesel produced right here in Canada, we are taking significant steps towards a sustainable future on a global scale.”