As 2024 gets underway, the new year marks an opportunity for the bulk liquid terminal industry to take a wider view of the global energy market. While products like oil and gasoline remain the clear majority in the stock of all bulk liquid goods, cleaner low-carbon forms of energy such as liquid hydrogen, liquid ammonia, and biofuels (e.g. ethanol) are playing an increasing role in the day-to-day energy supply chain.
Bulk liquid terminals − the critical storage and logistics nodes for these products as they make their way from producer to consumer − are poised to play a more pivotal role now and well into the future.
In the US, policy makers in Washington D.C. have started to notice and meaningfully support this shift. Both state and federal actors seek to capitalise on the funding provided for clean energy initiatives through laws like the 2022 Inflation Reduction Act and the Infrastructure Investment Jobs Act. In 2023 alone, for example, the US Department of Energy (DOE) announced US$8 billion for its Regional Clean Hydrogen Hubs Program (H2Hubs), which will create networks of hydrogen producers, consumers, and local connective infrastructure to accelerate the use of hydrogen.1 Likewise, the US Department of Agriculture (USDA) announced another US$500 million in funding to make biofuels more available to US consumers.2
Globally, organisations like the United Nations (UN) and its convenings like the Global Climate Change Conference (COP28) in Dubai, UAE, have offered the chance for leaders to outline a low-carbon future through international agreements and pacts. The body even went so far as to signal “the beginning of the end” of the fossil fuels era.3 Similarly, the International Renewable Energy Agency (IRENA) signed an agreement with DP World, a UAE-based global supply chain solutions company, to collaborate on decarbonising the global shipping and ports sectors.4
Terminal companies, however, must still overcome unique challenges to embrace this transition in bulk liquid goods. Hydrogen, as one of the current front-runners in the low-carbon transition, can be converted from its regular gaseous form to a liquid, through a costly liquefaction process. It must also be stored at incredibly cold temperatures, adding a logistical hurdle to its journey through the supply chain.
As an alternative, liquid ammonia is more readily available, is easier to store (as it does not need to be kept nearly as cold), and has a higher energy density than liquid hydrogen (11.5 MJ/l to 8.5 MJ/l). Ammonia production, however, is far from green and makes up 1 – 2% of global carbon emissions, undermining its value as a low-carbon source – at least in the short-term.5
In the end, a true and long-lasting move away from fossil fuels will require persistent effort from the public, government leaders, and businesses alike. As a critical component in this endeavour, terminal companies and the ILTA remain committed to meeting the challenges of tomorrow and stand ready to play a prominent role in the global energy market long into the future.
- https://www.energy.gov/oced/regional-clean-hydrogen-hubs-0
- https://www.usda.gov/media/press-releases/2023/06/26/biden-harris-administration-announces-funding-homegrown-biofuels
- https://unfccc.int/news/cop28-agreement-signals-beginning-of-the-end-of-the-fossil-fuel-era
- https://www.irena.org/News/pressreleases/2023/Nov/IRENA-and-DP-World-Join-Forces-to-Advance-Decarbonisation-Solutions-for-Ports-and-Maritime-Logistics
- https://e360.yale.edu/features/from-fertilizer-to-fuel-can-green-ammonia-be-a-climate-fix
