Oceans of Opportunity

Investment Rating - The report does not explicitly provide an investment rating for the industry but emphasizes the potential for green methanol and ammonia as promising options for achieving decarbonization goals in shipping [18][44]. Core Insights - The International Maritime Organization (IMO) has set a target for shipping to achieve net-zero emissions by around 2050, with an interim goal of 5-10% uptake of zero or near-zero greenhouse gas emission technologies by 2030 [18][44]. - Green methanol and ammonia are identified as key fuels in the transition to zero-emission shipping, with the report exploring their supply dynamics and the necessary actions for ports to establish bunkering infrastructure by 2030 [18][43]. - The report highlights the importance of affordability, attractiveness, and accessibility for zero-emission fuels to reach a technology tipping point, which is crucial for their widespread adoption [42][44]. Summary by Sections Executive Summary - The report outlines the shift in the shipping industry towards new fuels, particularly green methanol and ammonia, as part of the decarbonization strategy [18]. - It discusses the uncertainties surrounding the availability of these fuels and the need for clarity to encourage investment in zero-emission ships [18][19]. Green Methanol and Ammonia Supply Dynamics - The economics of green methanol and ammonia production and transport suggest extensive trade linking low-cost production regions with key ports [19][53]. - Local production of e-ammonia or methanol is expected to be the most economical option for many ports in the medium to long term [20]. - The report inventories global projects aiming to produce green methanol and ammonia by 2030 and considers supply scenarios for various bunker ports [21]. Port Archetypes and Strategies - The report identifies four port archetypes: Importing Incumbents, Producing Incumbents, Future Exporters, and Bespoke Players, each with distinct opportunities and risks in the transition to green fuel bunkering [31][32]. - Strategies for ports to become first movers in green methanol and ammonia bunkering are discussed, including establishing partnerships and engaging first mover customers [38][40]. Action and Recommendations - The report provides recommendations for ports to seize their green bunkering opportunities, emphasizing the need for collaboration within the bunkering ecosystem [38][40]. - It suggests that ports should consider setting targets for zero-emission fuel sales and explore capital grants for bunkering infrastructure [40].