Shipping’s Energy Transition: Strategic Opportunities in South Africa

South Africa is well-positioned to lead the shipping energy transition due to its vast renewable energy potential and strategic location. The report identifies three primary strategic opportunities: the Saldanha Bay Industrial Development Zone, the proposed Boegoebaai port, and the Hydrogen Valley project. It argues that by leveraging its solar and wind resources, South Africa can produce green hydrogen and ammonia to serve as a bunkering hub and exporter, while simultaneously driving a just transition away from coal. The document recommends port electrification, alignment of maritime policies with national climate goals, and the creation of blended finance mechanisms to attract the estimated R175 billion in infrastructure investment needed by 2030.

• South Africa's domestic maritime emissions are significantly underestimated in national inventories; new estimates using the Shipping Geospatial Model (SGM) show they are underestimated by at least 87%.
• South Africa possesses immense renewable energy potential, with the capacity to produce between 1,578.3 and 5,698.3 Terawatt hours per year (TWh/y) by 2030, which far exceeds the estimated 3.8 to 3.9 TWh/y required if 5% of the global fleet transitions to scalable zero emission fuels (SZEF) by 2030.
• Developing SZEF infrastructure to support shipping could attract up to R175 billion Rand ($11.1 billion USD) in onshore infrastructure investment by 2030.
• Saldanha Bay Industrial Development Zone is a key opportunity for a green hydrogen hub and a green corridor for iron ore exports, as 77% of vessels at the port are bulk carriers.
• The proposed Boegoebaai deep water port in the Northern Cape is identified as a strategic export hub for green hydrogen, with potential renewable energy generation of 30 GW capacity or more.
• The Hydrogen Valley project proposes a corridor with three hubs (Johannesburg, Mogalakwena, and Durban-Richards Bay) to aggregate demand across shipping, mining, and other industrial sectors.
• Maritime emissions significantly impact coastal populations; for example, a 100 km radius around Port Elizabeth generated 871 kt of CO2e and 11 kt of SOx in 2018.
• South Africa's current maritime policy is fragmented, with the Green Transport Strategy for South Africa (2018-2050) treating maritime transport as a small contributor to emissions because most activity occurs beyond national boundaries.
• To overcome the high cost of first-mover projects, South Africa should utilize blended finance, including concessional loans from multilateral banks like the World Bank and African Development Bank, and bilateral partnerships such as the one with Germany.

APA

World Economic Forum (2022). Shipping’s Energy Transition: Strategic Opportunities in South Africa. https://www3.weforum.org/docs/WEF_Shippings_Energy_Transition_Strategic_Opportunities_in_South_Africa_2022.pdf

Chicago

World Economic Forum. Shipping’s Energy Transition: Strategic Opportunities in South Africa. 2022. https://www3.weforum.org/docs/WEF_Shippings_Energy_Transition_Strategic_Opportunities_in_South_Africa_2022.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Shipping’s Energy Transition: Strategic Opportunities in South Africa |date=2022 |url=https://www3.weforum.org/docs/WEF_Shippings_Energy_Transition_Strategic_Opportunities_in_South_Africa_2022.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2022shippings, author = {{World Economic Forum}}, title = {{Shipping’s Energy Transition: Strategic Opportunities in South Africa}}, institution = {World Economic Forum}, year = {2022}, url = {https://www3.weforum.org/docs/WEF_Shippings_Energy_Transition_Strategic_Opportunities_in_South_Africa_2022.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }