The Future of Green Fuels in the Maritime Industry: A Conversation with Madoqua

As the shipping industry is witnessing a surge in green corridor initiatives on the net-zero path, unlocking clean fuel supplies – along with adequate storage and bunkering infrastructure – is expected to accelerate the implementation of such initiatives. To ensure sufficient supplies and compliance with EU regulations and targets, clear and stable rules and policies are required for both producers and consumers of green fuels.

Luso-Dutch company Madoqua aims to scale up Power-to-X (PtX) technologies to produce and market hydrogen and its derivatives, including green ammonia, green methanol, and synthetic fuels.

The company’s portfolio includes green ammonia and e-methanol projects in Portugal, as well as the Madoqua Green Fuels Terminal – key components of a green fuels corridor connecting Portugal with Northern Europe.

Offshore Energy spoke with Madoqua’s Chief Commercial Officer, Marloes Ras, about the current developments of the green fuels corridor as well as challenges and opportunities that could drive forward the adoption of green fuels in the maritime industry.

Collaboration for a Sustainable Future

• OE: In late 2024, Madoqua entered into an agreement with the Port of Sines, the Port of Rotterdam, and Duisport to establish a green fuels corridor connecting Portugal with northern Europe. The project was joined by a number of industry partners such as Copenhagen Infrastructure Partners (CIP), Mitsui O.S.K. Lines (MOL), Norwegian Cruise Line (NCL), and Horisont Energi, among others, to further advance this initiative. What is the main driving force behind this collaboration, and are there any plans to bring additional partners on board the project?

Ras: These are all partners with whom Madoqua has been working over the years. They cover the entire value chain and have demonstrated to be willing to go the extra mile, to explore new business and operational models to unlock energy transition, to share risk and returns, and most importantly, to make humanities co-existence on earth sustainable for generations to come.

Any partner with a collaborative mindset and potential for socio-economic value creation is welcome to the eco-system. Collaboration is key, and the only way forward.

Progress and Challenges in Green Fuel Corridor Development

• OE: What progress has been made so far in the green fuels corridor development? Are there any bottlenecks that could impact the launch of this project?

Ras: To support the safe adoption of ammonia as a marine fuel, our partner Copenhagen Infrastructure Partners has developed a pioneering Ammonia Bunkering Operations Manual in collaboration with leading gas experts and reviewed by the American Bureau of Shipping (ABS).

Through our ongoing discussions with the Port of Rotterdam (POR), Port of Sines (APS), and Duisport, we have gathered insights to align its bunkering procedures with port infrastructure, safety requirements, and operational best practices.

Madoqua is in the process of concluding a feasibility study on the green fuels terminal in Sines, Portugal in partnership with KBR, UK. We have received initial funding from the EU, through the Connecting Europe Facility (CEF). The ammonia storage component has advanced ahead of the other products (e-methanol, CO2, eSAF) and is concluding FEED. We are moving towards FID and preparing an application for the Alternative Fuels Infrastructure round (AFIF). Many of our green corridor partners support our application, through knowledge sharing as well as through cooperation.

Storage and handling infrastructure is key but requires product flow to generate demand. This introduces an element of project-on-project risk. This is why collaboration between producers and terminal experts is important, as well as EU-level support to unlock projects.

Scaling Up Green Fuel Production

• OE: Madoqua is already working on a green hydrogen derivatives project to produce green ammonia and e-methanol in Portugal, as well as the Madoqua Green Fuels Terminal, a necessary infrastructure for this green corridor. Based on the current demand, are there any plans to further scale up production?

Ras: Madoqua Green Fuels Terminal will start with ammonia storage, pipeline, and offloading infrastructure in phase one. The infrastructure is based on an open access model, by which we intend to unlock regional green fuels projects. Following the green ammonia component, storage and handling infrastructure for CO2, eSAF, and eMethanol are expected. We are discussing different modes of collaboration with industry players.

The MadoquaPower2X green ammonia project in Sines starts with a 500 MW electrolysis capacity for phase one. In addition to phase one, we have an additional 840 MVA of grid access for a 700 MW phase two secured, which will require additional ammonia storage infrastructure.

Regulatory Influence on Green Fuel Production

• OE: How do you see FuelEU Maritime regulation influencing the production of green fuels (green hydrogen and its derivatives, including ammonia, methanol, and liquid CO2) and bunkering infrastructure?

Ras: As we move through the second half of the decade towards 2030, we see many EU regulations kicking in, such as FuelEU Maritime. This will be followed by the IMO standards proposal in April 2025 to be adopted in October.

The reality is just a 10% renewables implementation in the overall fuel mix for the maritime sector would mean a lack of supply of new generation e-fuels. The production capacity required to meet demand in 2030 and thereafter will not be ready in a timely manner as it takes at least 46 months for a greenfield facility to be licensed and built.

Future Green Fuel Corridor Initiatives

• OE: Are there any plans to create more green fuel corridor initiatives in the future? How do you envision these initiatives evolving?

Ras: There are several individual geographic corridors as well as pipeline infrastructure being announced and awarded support by the EU. With more support available from the EU, public and private entities can collaborate to ensure critical infrastructure develops in line with green fuels production facilities.

We are developing open-access green ammonia infrastructure in line with the industry uptake of green ammonia and the development of MadoquaPower2X. We are developing e-methanol and CO2 storage infrastructure ahead of the expected product supply hitting the market.

• OE: The Global South has been recognized as a promising market for green fuels. Do you see potential in the Global South to supply much-needed green fuels to the developed countries?

Ras: Yes, this is an opportunity both for the EU and for the Global South. As an example, Morocco and Namibia are interesting locations for collaboration: excellent wind and solar resource, availability of land, and stable regimes. However, critical core infrastructure is often missing or requires expansion and/or an upgrade. The development and construction time of port infrastructure for instance should not be underestimated and adds both to the project timeline and the project development uncertainty.

• OE: Price gap and insufficient regulatory conditions are often cited as the main hurdles for transitioning to green fuels in the maritime industry. In your view, what measures and incentives could be prioritized by regulatory bodies and policymakers to accelerate the transition?

Ras: Strict additionality and temporal correlation requirements are a challenge to the new business models, both from a profitability and execution perspective.

The EU has mostly implemented rules and regulations on the producers of green fuels. Now we need to push users of fossil fuels towards adopting and blending or switching. This needs to be accelerated. In the absence of regulation on consumers we do not foresee EU-level goals being met.

We should also have a critical look at why most utilities, oil and gas players, are withdrawing from large-scale projects, other than decarbonizing their own refineries. We don’t need them to push projects forward. However, we will reach net zero faster and more efficiently if we leverage off their knowledge, presence, and balance sheet. Personally, I also believe they have a responsibility, and our policymakers should address this.

• OE: Looking ahead, what trends do you predict emerging for the adoption of green fuels in the maritime industry? What will it take to ensure sufficient supplies for the industry?

Ras: There still exists a core amount of production capacity that can be unlocked to meet future supplies. However, the window of opportunity to make this a reality is shrinking fast. It is natural that out of hundreds of projects, not all have the right fundamentals to be viable. However, we have seen viable projects by credible developers being discontinued due to the failure of policymakers. To ensure sufficient supply, we need a stable regulatory framework and clarity.

We are already seeing offtake picking up, MadoquaPower2X phase one is close to being fully contracted. Phase two is fully covered from a LoI perspective. We require a substantial amount of additional renewable energy to power up phase two.