The Rotterdam–Singapore Green & Digital Shipping Corridor (GDSC) has published a new report identifying the key barriers and concrete solutions needed to accelerate investment in sustainable marine fuel production.

Maritime shipping consumes around 300 million tonnes of fuel annually and accounts for approximately 3% of global CO₂ emissions. While the sector faces growing pressure to decarbonise, investment in sustainable marine fuel production remains well below what is required. A new publication by the Rotterdam–Singapore Green & Digital Shipping Corridor (GDSC) highlights why and what must change to break the deadlock.

The report identifies the persistent chicken‑and‑egg problem at the heart of the sustainable fuel transition in the maritime sector. Limited production capacity keeps sustainable fuel prices high and uncertain, suppressing demand and preventing projects from reaching Final Investment Decision (FID). At the same time, international regulatory uncertainty, particularly around International Maritime Organization (IMO) frameworks, continues to undermine investor confidence.

Investment risk sits upstream

The publication, Understanding & addressing barriers hindering timely investment in sustainable fuel production for marine shipping, analyses the full value chain of sustainable marine fuels through a case study of a green ammonia project, with production in Egypt and delivery to Rotterdam for bunkering. The findings show that 80–85% of total fuel costs originate in production, with transport, storage and bunkering playing a much smaller role.

Developing a production facility requires €0.5–1 billion in upfront capital and 10–15 years to deliver, making projects highly dependent on having stable and supportive regulatory environments, infrastructure and demand in the long term. With the cost of capital accounting for 30–50% of total project costs, unresolved risks before FID translate directly into higher fuel prices or stalled investments. In a market where dualfuel vessels can fall back on fossil fuels, fuel suppliers cannot rely on predictable offtake volumes – further challenging bankability.

Call for structured dialogue and coordinated action

The publication sends a clear message: investments and therefore sustainable fuel production will not materialise without coordinated dialogue and decisive action by policymakers, financiers and fuel suppliers:
Policymakers must provide clear, aligned and longterm regulatory frameworks at global, regional and national levels.
Financiers need transparency on risk allocation and access to effective public riskmitigation instruments.
Fuel producers and offtakers require credible demand signals and longterm contracting mechanisms.

No single stakeholder can resolve these challenges alone. Coordinated action across the value chain is essential to align timelines, reduce uncertainty and unlock capital.

GDSC as a catalyst

Through this publication, the Rotterdam–Singapore Green & Digital Shipping Corridor positions itself as a testbed for collaboration, supporting regulatory dialogue, risksharing solutions and demand aggregation. The GDSC calls on stakeholders to engage now, turning policy ambition into investable projects and accelerating the commercial deployment of sustainable marine fuels.
Source: Port of Rotterdam