A study by the World Maritime Forum stated that bulk carriers powered by green ammonia could feasibly be deployed on the iron ore trade route between South Africa and Europe as early as 2029, progressing towards total decarbonization by 2035.
The feasibility report, created in collaboration with a consortium formed in 2023 that includes Anglo American, CMB.TECH, Freeport Saldanha, Vuka Marine, and Engie, stated that the corridor connecting Saldanha Bay in the Western Cape with the Port of Rotterdam, in the Netherlands, would be one of the first global South-North green shipping routes.
Saldanha Bay, home to South Africa’s main iron ore export terminal, is already planning the development of ammonia production, along with port upgrades to manage bunkering operations.
In the early years of the green corridor, ammonia-powered ships are likely to bunker in Rotterdam, one of the ports most established in terms of its ammonia bunkering and safety systems. Meanwhile, Saldanha Bay will have the opportunity to develop the necessary infrastructure to become the long-term green ammonia production and bunkering hub for the corridor.
By 2035, the port precinct could provide bunkering services to all vessels in the corridor locally, creating a dual-purpose facility that continues mineral exports while serving international shipping.
“This phased approach provides shipowners and fuel producers with a clear timeline to work towards, and we now need coordinated action from policymakers and industry to make this a reality by 2029,” said Shanon Neumann, Investment Facilitation Associate at Freeport Saldanha.
“However, to help Saldanha Bay make a rapid transition, a blend of public and private funding can unlock infrastructure investment and reduce the risks of initial projects,” added Neumann.
The World Bank and the World Economic Forum have already identified South Africa as a potential key player in boosting shipping decarbonization. The green corridor could help turn this idea into reality.
The green hydrogen projects announced near the ports of Boegoebaai, Saldanha, and Walvis Bay could meet the corridor’s fuel needs, including its high-demand scenario of 22 bulk carriers per year by 2035. The possibility of such high demand levels could mean a stronger business case for green hydrogen producers seeking to secure sufficient offtake volumes to finalize investment decisions and accelerate new projects.
If the necessary funding, potential tax incentives, and discounts on port tariffs for fuel production and the development of bunkering facilities at Freeport Saldanha are added, South Africa could gain a competitive advantage as an international supplier of ship fuel.
