The authorities in Panama and Spain are looking into the possibility of establishing a green shipping corridor between the two countries.

Consultancy Ricardo has been appointed to carry out a feasibility study for a green shipping corridor between Algeciras and Panama, it said in an emailed statement on Tuesday. The study will be carried out in collaboration with the Algeciras Bay Port Authority, the Panama Canal Authority and the Panama Maritime Authority.

The study will be funded by the European Union delegation in Panama and Costa Rica.

The work will consider the following aspects, according to the statement:

• Confirm feasible fuel options and operational implications to define realistic pathways for transitioning trans-oceanic container shipping to zero- or near-zero-emission energy sources.
• Evaluate the business case for the corridor. This will consider capital costs of alternative-fuel vessels compared to conventional ships, the fuel price differential between zero/near-zero and fossil fuels, and operating costs linked to compliance with regulatory schemes such as the IMO Net-Zero Framework, FuelEU Maritime, and the EU ETS.
• Identify enabling policy and financial interventions and initiatives that could help bridge cost gaps and accelerate deployment, and measures to strengthen the emerging zero-emission fuel supply chain.

The results of the study are due to be delivered by April 2026.