Indonesia has potential to produce low carbon marine fuels

Indonesia is deemed as one with high potential to produce renewable energy source for the shipping sector

A study revealed that Indonesia’s location, economic development, and vast renewable energy sources make it well-suited to be a green maritime fuel producer.

Positive takes on Indonesia
The P4G report “Indonesia: fuelling the future of shipping – Low carbon shipping fuels for Indonesia’s shipping sector” was prepared by Ricardo PLC for the P4G Getting to Zero Coalition – a partnership between the Global Maritime Forum, the World Economic Forum, and Friends of Ocean Action. It investigates the potential adoption of zero-emissions shipping fuels in Indonesia, South Africa, and Mexico; and builds on the previous work of the Environmental Defense Fund (EDF). It also explores the context and potential for the adoption of zero and low carbon shipping fuels through the shipping sector of Indonesia.

About 47 per cent of Indonesia’s Gross Domestic Product (GDP) comes from exporting goods to large economies such as China and the United States. Being able to offer low carbon fuels to vessels and decarbonise will enable Indonesia to serve a future growing market, simultaneously creating an attractive manufacturing hub as demand for low carbon goods increases.

Indonesia serves a large number of international vessels and occupies a key position along busy and important shipping routes. Among these are the Straits of Malacca and the Sunda Strait, which provides more international opportunities due to proximity to existing ports in Jakarta. Its strategic maritime position could enable the country to become a key player in reaching zero-emission shipping by 2050.

Dr Santiago Suárez de la Fuente, Energy and Transport Lecturer at University College London (UCL) Energy Institute, said, “The study identified hydrogen and ammonia as the most suitable options for large commercial vessels such as containers and bulk carriers; small passenger and cargo vessels can be supplied through direct and onboard electrification. Along with Indonesia’s insular composition, its shipping traffic capture area, and its regional partners, this positions Indonesia as a key enabler to decarbonise the global fleet. Furthermore, this allows Indonesia to advance its ambition in reducing its national carbon footprint.”

Basilio Dias Araujo, Indonesian Deputy Minister for Maritime Sovereignty and Energy Coordination, pointed out that regardless of the emission volume by ships crossing Indonesian waters, the country is determined to gradually lower its national carbon emission levels. He stressed, “The government has promoted the transition from oil to gas fuel for small boats. However, it is important to collaborate and have collective actions by domestic maritime and energy industries, as well as international bodies such as the International Maritime Organisation (IMO), United Nations Conference on Trade and Development (UNCTAD), and the World Bank to assist in our efforts to introduce low-carbon technology.”

The adoption of zero-carbon shipping fuels has significant benefits and synergies for Indonesia far beyond the shipping sector. In particular, there is the potential to create a wide range of jobs within the supply chains of zero-carbon fuels, which can support Indonesia’s economy.

Marine Online Media Team
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