Project cargo carriers are on the verge of a windfall as the growing push to decarbonize creates opportunities to haul materials and equipment needed for billions of dollars in green energy projects, according to an industry expert quoted in a JOC.Com report.
That windfall could be driven by as much as $50 billion annually in projects to build plants such as electrolyzers and methane reformers in a scenario where hydrogen — one of the highly touted “fuels of the future” — provides 10 percent of the global energy mix by 2030, Alex Klaessig, director of IHS Markit’s hydrogen and renewable gas forum, told the virtual JOC Breakbulk and Project Cargo Conference last week. IHS Markit is the parent company of JOC.com.
“I think the energy transition is going to be a boom to the breakbulk and project logistics industry,” Mr. Klaessig said.
That is good news for the industry, which relies heavily on transporting heavy equipment used for traditional fossil fuel-based oil and gas projects, like refineries and petrochemical plants.
Total capital spending of up to $265 billion for hydrogen-related projects will be seen by 2030, with electrolyzers making up the bulk of this spend, according to IHS Markit. However, that $265 billion may underrepresent the total investment needed, as infrastructure facilitating the use of hydrogen in transportation and for hydrogen storage will also be needed, IHS Markit said.
The International Maritime Organization (IMO) has set a goal to decarbonize the global shipping fleet by 50 percent compared to 2008 levels by 2050. With shipping activity expected to almost double by 2050, hydrogen could play a significant role in that shift, according to Mr. Klaessig. (photo: Shutterstock)