- IMO Net Zero Framework could unlock US$11–12 billion annually to accelerate green shipping fuels.
- Egypt and Morocco positioned at key trade routes with low cost renewables and port infrastructure.
- Nearly 80% of regional green fuel projects remain stalled at concept stage due to financing gaps.
North African countries are being urged to act swiftly to capture a strategic share of the emerging green shipping economy, as the International Maritime Organization prepares to take a critical decision on its Net Zero Framework.
A new policy brief published by the Green Hydrogen Organisation highlights the region’s strong potential to become a global hub for green fuel bunkering, at a time when the maritime sector faces mounting pressure to decarbonise. The urgency has intensified following recent spikes in heavy fuel oil prices driven by instability in the Middle East, once again exposing the vulnerability of global shipping to fossil fuel shocks.
The proposed Net Zero Framework, if adopted, would establish a legally binding pathway to net zero emissions in shipping by 2050. It is expected to generate US$11–12 billion per year through a dedicated fund designed to incentivise the uptake of green fuels such as ammonia, methanol and e LNG.
North Africa stands out as a natural contender in this transition. Egypt and Morocco are located along two of the world’s most strategic maritime corridors, the Suez Canal and the Strait of Gibraltar, which together handle more than 12% of global trade.
The region also benefits from some of the lowest renewable energy costs globally, with solar power in Egypt priced at around US$0.02 per kWh. Both countries already have established fertiliser industries and extensive experience in ammonia handling at ports, creating a strong foundation for scaling green ammonia production.
Such expansion could deliver multiple benefits, including decarbonising domestic fertiliser production, supplying Europe’s growing demand for clean ammonia and positioning North African ports as refuelling hubs for vessels travelling between Asia and Europe.
Analysis of the International Energy Agency database identified 74 green fuel projects across North Africa, with 47 located at or near ports. However, nearly 80% of these projects remain at an early concept stage, with limited progress due to financing constraints.
Industry stakeholders point to the Net Zero Framework as a critical enabler that could unlock investment by providing both a clear demand signal and long term regulatory certainty. New modelling from the UCL Shipping and Oceans Research Group and RMI shows that only a comprehensive mechanism combining carbon pricing, a capped surplus unit market and targeted incentives can create a viable investment environment for zero and near zero fuels.
Early progress is already visible in the region. Egypt’s East Port Said recently hosted the first green methanol bunkering operation in Africa and the Middle East, supplying a vessel operated by Maersk. The Suez Canal Authority has also introduced incentives to encourage green infrastructure development.
Meanwhile, Morocco has launched its Green Hydrogen Offer to support the development of a full value chain, with estimates indicating that cost effective green fuel bunkering could be achieved at the Tanger Med Port.
Despite these advances, stakeholders agree that the absence of a global demand signal remains the key barrier. Without predictable revenue streams and clear regulatory direction, large scale investments are unlikely to materialise.
As the IMO prepares to deliberate, governments across the Middle East and North Africa, particularly Egypt and Morocco, are being encouraged to back the Net Zero Framework as a decisive step towards unlocking the region’s green shipping potential.
Link to the full policy brief by the Green Hydrogen Organisation HERE
Author: Bryan Groenendaal
