South Korean and US ports formalize green shipping corridor agreement

South Korea’s Busan Port Authority (BPA) and the Ulsan Port Authority and the United States’ Northwest Seaport Alliance (NWSA), the Port of Tacoma (PoT) and the Port of Seattle have penned a formal agreement aiming to strengthen efforts in establishing a green shipping corridor.

As officials from environmental organization Pacific Environment have shared, the NWSA has been working with a number of partners over the past three years on the U.S.-South Korea green shipping corridor project that targets examining the feasibility of speeding up the transition to zero or net-zero (ZNZ) marine fuels across trade lanes between the NWSA gateway and the ports of Busan and Ulsan.

The organization has voiced support for the formalization of the multi-port memorandum of understanding, which reportedly originated in 2024.

“Electrifying ports and moving ships to zero emissions reduces the health risks of air pollution for portside communities and port workers. We applaud the ports’ action to protect communities and port workers from toxic pollution and climate change impacts,” Fern Uennatornwaranggoon, Climate Campaign Ports Director at Pacific Environment, commented.

As disclosed, the cooperation under the MoU will include (but will not be limited to):

• maritime decarbonization and in-port emissions reduction schemes and infrastructure improvements, with the agreement to align strategies in support of these activities;
• collaboration to support the implementation of the green shipping corridor;
• projected demand for ZNZ fuels;
• emerging ZNZ fuel supply chains on both ends of the trade lanes, as well as globally;
• ZNZ fuel storage and bunkering capacities (present and potential future ones), safety and other regulatory frameworks
• ZNZ costs, encompassing an assessment of the total cost of ownership of these marine fuels, and the estimated price differential compared to existing fuels, as well as strategies for mending that gap;
• digitization (data sharing) processes;
• additional exchange of green practices and further business development opportunities.

Ever since initially unveiling this collaboration, per Pacific Environment, the five partners have been working on a detailed study exploring the feasibility of the project and the challenges (and costs) that come with committing to the above-listed targets.

In terms of the feasibility study, which is said to be planned for completion by the end of this year, the Maersk McKinney Moller Center for Zero Carbon Shipping (MMMCZCS) is leading the assessment for the green car-carrier corridor, while Norway’s shipping and logistics company Wallenius Wilhelmsen is to be the ‘key’ commercial partner.

As elaborated earlier this year by the South Korean Ministry of Oceans and Fisheries (MOF), plans are underway to wrap up an initial deployment of green methanol-fueled car carriers and containerships in the trade route between Seattle-Tacoma and Ulsan-Busan by the end of 2027.

The study itself also consists of two other elements: a South Korea-focused element led by the Korean Register (KR) with maritime transport major HMM as the ‘core’ commercial partner and a U.S.-focused part led by RMI (formerly Rocky Mountain Institute) and Singapore’s Swire Shipping. On the United States side, partners like C2X and HIF are to focus on green methanol production.

In addition to this, following a project partner meeting in April this year, it was highlighted by MOF that the South Korean and the U.S. ports plan to set up a supply base and the required infrastructure specifically for the wider application of green methanol and ammonia.

South Korea has been hailed as a fast mover in the worldwide green shipping and maritime decarbonization movement, having signed agreements for multiple green shipping corridors, invested in zero-emission vessel technology and strived toward an environmentally friendly fuel supply chain with a focus on green variations of methanol and ammonia.

Beyond the green shipping corridor project with U.S. ports, South Korea has also announced plans to establish a similar initiative with Australia by 2029 and Europe.