Ports: a central role in the electrification of transportation

This week, our Secretary-General, Kristian Ruby , was in Stockholm to join a high-level discussion on accelerating the electrification of transport in Europe (ACCENT), organised by the Sweden in EU . The timing of this discussion was great for us at Eurelectric as we begin revving up for #EVision 2023, coming 20-21 March. Less focused on the electrification of road transport, Ruby’s intervention instead zeroed in on the role of ports in the electrification of the transport sector. Nonetheless, Europe’s ports remain a vital component for supporting the continent’s e-mobility revolution and broader electrification.

Why ports?

In 2020, we published a report with DNV identifying ports as green gateways to Europe . Developments since have only underscored this potential. Ports are essential for different types of transport across Europe, from moving cargo to providing transport for people, hosting industrial and commercial activities to being the hub where different sectors connect and interact. According to the European Maritime Safety Agency , nearly 75% of European trade is carried out by sea, making up nearly 11% of global economic activity. As a result, decarbonising these hubs can go a long way in mitigating global emissions, and the vector through which to do that is electrification.

Being strategically located close to renewable energy sources like wind and solar, together with their existing infrastructure for storage and distribution of energy, means that ports have a unique potential to electrify broad swaths of economic activity. More specifically, our report highlighted 10 active transitions with direct and/or indirect impacts on ports that advance electrification.

In brief, these points include the ability to directly electrify port activity like cranes, bunkering, logistical vehicles, and so on, as well as the industry that surrounds it. Beyond that, with the European Commission ’s #REPowerEU plan making way for significant production of hydrogen, ports are poised to become key locations for its production, thanks to the often-abundant nearby renewable electricity potential that can be used for electrolysis. That makes the deployment of RES – especially offshore wind and technologies deployed in place of decommissioned fossil-fuelled power plants – economically lucrative in these locations. And with so much energy emanating from this clustered position, integration into the energy system can help support more indirect activities such as carbon capture and storage, circular, bio-based economic activities, and smart city functionalities .

That’s not all

Other than the port-focused session featuring our Secretary-General, ACCENT also covered the collaboration between stakeholders in the energy and transport sectors. Cross-sectoral cooperation has always been key to all elements of the green transition, and this is no different for the transition to e-mobility. Thus, the ports topic and the possibilities they present fed nicely into other issues at ACCENT including establishing battery value chains, deploying charging infrastructure, efforts to electrify aviation, and completing the electrification of Europe’s railways.

All hands on deck

To realise all this, proper incentives need to drive evolution and innovation. The timeline for the development of ports into electricity hubs can vary, depending on several factors such as the availability of funding, the regulatory environment, and the level of interest from private and public sector stakeholders. In our report, we introduce a number of policy recommendations to address these factors. As of July 2021, the Commission’s Fit for 55 package sport two files with relation to this – the Alternative Fuels and Infrastructure Directive (AFIR) with binding targets on port electrification, and FuelEU Maritime with targets to reduce vessel carbon intensities – which are, as of now, in trilogues, with agreement expected in March this year.

Alongside these pieces of legislation, there is much we can do to speed up the evolution of ports into energy hubs. The electrification of port activity, mentioned above, is the most obvious, as much of it already can be directly electrified and will in fact be covered by AFIR’s binding targets. Electrification of industry should also be promoted to lower fossil cargos and make space for electricity production facilities and support utilities. Following this, more funding, and incentives for RES deployment at ports with streamlined permitting would accelerate the deployment of renewable electricity in the hubs. This should be complemented by investment in storage capacity on site to enable the electrification of the surroundings and act as suppliers of sustainable fuels. Lastly, stakeholder collaboration should be encouraged to develop new, innovative technology to improve efficiency and enhance the potential for port electrification.

On the horizon

Many of these points go beyond ports in fact. At EVision, we will be discussing 6 essentials to the e-mobility EVolution which include, with relevance to the above, clean power generation, grid management and cross-sectoral collaboration, and charging infrastructure. For more on that and the other essentials, be sure to register now .