shippings-energy-transition-strategic-opportunities-in-south-africa-compressed
This document is part of the request ”Request for documents related to South Africa's Just Energy Transition Partnership”.
Shipping’s Energy Transition: Strategic Opportunities in South Africa By Global Maritime Forum For the P4G Getting to Zero Coalition & University College London Partnership
Table of Contents
Precidency Foreword
8
Foreword
9
Executive Summary
11
Glossary
19
Section 1 The Need for Maritime Decarbonization
21
Section 2 South Africa: A Maritime Nation
24
Section 3 Maritime activity and shipping emissions
27
Section 4 Harnessing South Africa’s Renewable potential
38
Section 5 Policy framework & Climate Ambition
41
Section 6 Opportunities: Business Case Studies
47
Section 7 Finance and Investment Requirements
57
Section 8 Recommendations
60
References
69
ANNEX I Shipping Geospatial Model: Technical information
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Shipping’s Energy Transition: Strategic Opportunities in South Africa
About the Getting to Zero Coalition
The Getting to Zero (GtZ) Coalition, a partnership between the Global Maritime
Forum and World Economic Forum, is a community of ambitious stakeholders from
across the maritime, energy, infrastructure and financial sectors, and supported
by key governments, IGOs and other stakeholders, who are committed to the
decarbonization of shipping.
The ambition of the Getting to Zero Coalition is to have commercially viable ZEVs
operating along deep-sea trade routes by 2030, supported by the necessary
infrastructure for scalable net zero-carbon energy sources including production,
distribution, storage, and bunkering.
About Partnering for Green Growth and the Global Goals 2030
The Partnering for Green Growth and the Global Goals 2030 (P4G) is a global
delivery mechanism pioneering green partnerships to build sustainable and resilient
economies. The P4G mobilizes a global ecosystem of 12 partner countries and 5
organizational partners to unlock opportunities for 66 partnerships working in five
SDG areas: food and agriculture, water, energy, cities and circular economy.
About the Global Maritime Forum
The Global Maritime Forum (GMF) is an international not-for-profit organization
dedicated to shaping the future of global seaborne trade to increase sustainable
long-term economic development and human wellbeing.
About Friends of Ocean Action
Friends of Ocean Action is a unique group of over 55 global leaders from business,
international organizations, civil society, science and academia who are fast-
tracking scalable solutions to the most pressing challenges facing the ocean.
It is hosted by the World Economic Forum in collaboration with the World
Resources Institute.
About the World Economic Forum
The World Economic Forum (WEF) is the International Organization for Public-Private
Cooperation. The Forum engages the foremost political, business, cultural and
other leaders of society to shape global, regional and industry agendas. It was
established in 1971 as a not-for-profit foundation and is headquartered in Geneva,
Switzerland. It is independent, impartial and not tied to any special interests.
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Shipping’s Energy Transition: Strategic Opportunities in South Africa
About Environmental Defense Fund
Environmental Defense Fund Europe is an affiliate of Environmental Defense Fund
(EDF), a leading international non-profit organisation that creates transformative
solutions to the most serious environmental problems. Since 1967, EDF has used
science, economics, law and innovative private-sector partnerships to bring a new
voice for practical solutions.
About University College London
University College London (UCL) Energy Institute Shipping Group aims to accelerate
the shipping transition to an equitable, globally sustainable energy system through
world-class shipping research, education and policy support. The group specialises
in multi-disciplinary research anchored in data analytics and advanced modelling of
the maritime sector.
About International Association of Ports and Harbours
The International Association of Ports and Harbours (IAPH) was formed in 1955
and over the last sixty years has grown into a global alliance representing over 180
members ports and 140 port-related businesses in 90 countries. The principal aim
of IAPH revolves around the promotion of the interests of Ports worldwide, building
strong member relationships and sharing best practices among our members.
About UMAS
UMAS delivers consultancy services and undertakes research for a wide range
of clients in the public and private sectors using models of the shipping system,
shipping big data, and qualitative and social science analysis of the policy and
commercial structure of the shipping system. UMAS’s work is underpinned by state-
of-the-art data supported by rigorous models and research practices, which makes
UMAS world-leading on three key areas; using big data to understand drivers of
shipping emissions, using models to explore shipping’s transition to a zero emissions
future and providing interpretation to key decision makers.
Layout by Housatonic.eu
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Aknowledgements Shipping’s Energy Transition: Strategic Opportunities in South Africa
Acknowledgments
This report was written by Katrina Abhold (GMF) and Aly Shaw (UCL) with Aideé
Saucedo, Domagoj Baresic, James Stewart, Santiago Suarez De La Fuente and
Wendela Schim Van der Loeff (UCL); Connor Bingham (GMF); Isabelle Rojon and Camilo
Perico (UMAS); Rosa Esi Ennison, Noam Boussidan, and Joachim Monkelbaan (WEF).
The authors would like to thank the following people and organizations who have
helped with reviewing the report: Ingrid Sidenvall Jegou (GMF); Tristan Smith and
Joseph Taylor (UCL); Margi Van Gogh (WEF); and Panos Spiliotis (EDF). The authors
would like to thank local stakeholders and members of the P4G-GtZ Coalition
Partnership project’s National Committee for South Africa for their continual input
and feedback to the project and report draft.
The project partners are grateful for the P4G’s financial contribution to the project.
To cite this report, please use: Abhold et al. (2022). Shipping’s Energy Transition:
Strategic Opportunities in South Africa. Report for P4G-Getting to Zero Coalition
Partnership project.
Local stakeholders and members of the P4G-GtZ Coalition Partnership Project’s
National Committee for South Africa.
Name Position Organization
Andrew Etzinger General Manager ESKOM
Anteneh Meseret Gelaw Africa Regional Manager P4G
Catherine Scholtz Co-founder African Hydrogen Partnership
Dumisani Ntuli Chief Director Maritime Department of Transport
Transport Policy & Legislation
Ernesta Swanepoel International Environmental Ernesta Swanepoel
Law Specialist
Hendrik Louw Acting CEO Northern Cape Economic
Development Trade and
Investment Promotion Agency
(NCEDA)
Ian Norman Fraser Chairman African Hydrogen Partnership
Jak Koseff Deputy Director-General: Gauteng Department of
Economic Planning & Economic Development
Development (GDED)
Jonathan DeBasc Managing Director: Thermal Engie
– Desalination – Hydrogen -
Storage, Africa
Julian Naidoo Principal Professional Officer: City of Cape Town (formerly)
Renewable Energy & Energy
Efficiency, Sustainable
Energy Markets
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Aknowledgements Shipping’s Energy Transition: Strategic Opportunities in South Africa
Name Position Organization
Kaashifah Beukes CEO Saldanha Bay Industrial
Development Zone (SBIDZ)
Kristoffer Rønde Møller Sector Advisor Embassy of Denmark in South
Africa
Nelson Mbatha National Environmental Transnet National Ports
Manager Authority (TNPA)
Nico Walters Head of Strategy and special Transnet Port Authority
Projects (formerly)
Noxolo Ncayo Managing Director OceanEcon Consulting (PTY)
LTD
Odwa Mtati CEO South African International
Maritime Institute (SAIMI)
Peter Lye Global Head of Shipping Anglo American
Rebecca Maserumule Chief Director of Hydrogen Department of Science and
and Energy Innovation
Richard Martin Humphrey Lead Transport Economist, The World Bank
Global Lead for Transport and
Regional Integration
Saliem Fakir Executive Director The African Climate
Foundation
Simon Christopher Bergulf Director Regulatory Affairs A.P. Moller - Maersk
Thomas Roos Senior Research Engineer Council for Scientific and
Industrial Research
Vernon Keller Deputy Chief Operations South African Maritime Safety
Officer Authority
Disclaimer
This report is from the P4G - Getting to Zero Coalition Partnership project, a project
between the Global Maritime Forum, the Friends of Ocean Action, the World Economic
Forum, University College of London, Environmental Defense Fund, and the
International Association of Ports and Harbours. The views expressed are those of
the authors alone and do not represent the opinions or views of the partners involved.
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Aknowledgements Shipping’s Energy Transition: Strategic Opportunities in South Africa
Foreword
Office of the Presidency
The Office of the Presidency welcomes the release of this report as an important
contribution to South Africa’s journey towards a green hydrogen-based economy.
Decarbonizing South African industry is essential to meeting the major challenges
the nation is facing, enabling a just transition to new cleaner forms of energy, and
sustainably future-proofing the wider economy for decades to come.
The maritime industry can be an important player in this transition, as a large
potential offtaker and carrier of these fuels and moreover a bridge to other land-
based sectors and geographies with increasing demands for alternative fuels.
It is our hope that South African stakeholders can leverage the opportunities outlined
in this report, reducing emissions whilst also taking advantage of South Africa’s unique
position to benefit from the wider industrial transition to zero emission fuels globally.
Because of the multi-sectoral nature of the green hydrogen potential in South Africa,
the Presidency will play a convening and coordinating role to enable the aggregation
of all expertise and interests across various government departments.
More work and collaboration will be needed to achieve this and ultimately ensure that
international maritime decarbonization can truly drive and contribute towards our
wider national ambitions.
Mr. Mondli Gungubele
Minister in the Presidency
Republic of South Africa
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Foreword Shipping’s Energy Transition: Strategic Opportunities in South Africa
Foreword
South Africa is well positioned to benefit from international maritime
decarbonization due to its large renewable capacity and unique location sitting at
the gateway between the Atlantic and Indian Oceans. Tapping into this global energy
transition holds the potential to accelerate the transition to cleaner forms of energy
across the economy, creating several opportunities for the country.
In supporting national efforts towards greening and future proofing the economy,
South Africa could seek to also leverage the opportunities surrounding maritime
decarbonization to achieve wider national ambitions. This includes promoting
national and international collaborations in research and development, advancing
climate action, moving to a just transition through decarbonizing industry,
developing a strong national renewable energy market, tapping into markets and
increasing export potential, regional development, job creation, energy and water
security, and local air quality.
To realize this, there is a need for South Africa to support the development of
policy levers, capable of facilitating and effectively contributing to decarbonizing
the maritime sector. This would require more clearly defining national objectives
to ensure that benefits are realized, unlocking potential value chains, as well as
supporting and advancing international policies capable of accelerating the just
transition to zero emission fuels globally.
As local stakeholders and members of the National Committee, we welcome the
findings outlined in this report and call on relevant actors to engage further around
realizing these opportunities for South Africa.
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Foreword Shipping’s Energy Transition: Strategic Opportunities in South Africa
Jenitha Badul Simon Bergulf Kaashifah Beukes Jonathan DeBasc
Saliem Fakir Hendrik Louw Richard Martin Vernon Keller
Humphreys
Rebecca Maserumule Nelson Mbatha Odwa Mtati Dumisani Ntuli
Kristoffer Rønde Thomas Roos Catherine Scholtz
Møller
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