Partnership to establish green corridor between South Africa and Europe

Maritime, mining, steel, and energy industry leaders join forces

SOUTH AFRICA: A new consortium is exploring the options to develop a maritime green corridor for the zero-emission shipping of iron ore between South Africa and Europe – in an initiative to take the first steps towards the region’s involvement in shipping’s carbonisation.

Maritime green corridors have swiftly become recognised as one of the most important tools to aid industry and governments in the decarbonisation of the maritime sector.

The consortium brings together Anglo American, Tata Steel, CMB, VUKA Marine, Freeport Saldanha, and ENGIE, convened by the Global Maritime Forum, to assess how zero-emission shipping on the corridor can unlock new opportunities for South Africa’s sustainable development and contribute to a just transition to a zero-emission maritime ecosystem.

This maritime supply chain consortium of iron ore miners and shippers, the steel industry, ship owners, freeport operators, and energy suppliers will explore full-scope concepts for the South Africa-EU green corridor development. The work will look at bunkering and offtake arrangements, available green fuel supplies, and financial and business model alternatives.

The consortium’s initiative to explore the development of the green corridor between South Africa and Europe builds on “Shipping’s Energy Transition: Strategic Opportunities in South Africa,” a report prepared by P4G and the Getting to Zero Coalition. The report identified promising opportunities for South Africa to establish itself as a key player in the global transition to renewable forms of energy and zero-emission shipping.

The development of the green corridor could help drive forward South Africa’s decarbonisation ambitions and serve a range of wider national and international objectives.

“It is fantastic to see this powerful industry consortium come together around a new green corridor with one side in South Africa, particularly as it sends a clear signal of industry action as we go into negotiations at MEPC 80 in July,” says Johannah Christensen, CEO of the Global Maritime Forum.

“We hope this project will lay bare a viable shipping decarbonisation pathway towards real-world implementation, generating sustainable growth and business opportunities for South Africa and the region, with synergies for other sectors of the economy.”

“Cross-industry collaboration is the key to shaping a sustainable maritime industry. We are looking forward to joining other industry leaders in exploring pathways to zero-emission shipping of iron ore between South Africa, where our Kumba mines produce high-quality iron ore, and Europe, where many of our customers are located. An important step toward wider industry decarbonisation, this initiative also aligns with Anglo American’s ambition to reach carbon neutrality for our controlled ocean freight by 2040,”says Peter Whitcutt, CEO of Anglo American’s Marketing business.

“The success of this corridor will likely accelerate the shipping industry’s journey towards decarbonized ocean transportation,” says Ranjan Sinha, Chief Group Shipping at Tata Steel.

“CMB is proud to be part of the Green Corridor initiative between South Africa and Europe. CMB has already built various ship types that run on hydrogen and is building dry bulk vessels powered by ammonia. We hope that our track record in the development of green ships will contribute to the success of the consortium and accelerate the deployment of low carbon vessels on this important trade route.” says, Alexander Saverys, Chief Executive Officer at CMB.

“The Green Corridor concept has the potential to accelerate solutions that can bring environmental priorities to the centre of route development,” says Andrew Mthembu, Chairman of VUKA Marine.

“With our expertise, we are excited to provide insights into the potential production of green fuels, vessel manufacturing, and servicing in Saldanha Bay,” says Kaashifah Beukes, CEO of Freeport Saldanha.

“ENGIE is eager to bring our global expertise and knowledge encompassing the entire hydrogen value chain to accelerate the establishment of the iron ore green corridor between South Africa and Europe. We are committed to building a carbon neutral world, and renewable hydrogen is key to decarbonizing hard-to-abate and energy intensive industries such as maritime transportation,” says Jonathan Debasc, ENGIE’s Managing Director: Flexible Generation & Retail, Africa.