Ports sit at the heart of global trade and are increasingly recognized as catalysts for the zero-carbon transition. Their interconnected role within supply chains gives them both a responsibility and an opportunity to drive decarbonisation.
However, achieving this ambition is no simple task. Ports are working hard to navigate complex challenges, balancing regulatory demands, infrastructure constraints, and the need for commercially viable solutions.
While grid-based shore power - commonly referred to as cold ironing - has long been proposed as a solution, it is becoming clear that it is not the universal fix many had hoped for. Ports need practical, scalable alternatives to ensure their sustainability ambitions can be translated into reality.
The shore power bottleneck
Many ports simply don’t have the electrical infrastructure to support large-scale electrification. While only 3% of global ports currently offer shore power connection points, the EU leads the way, with 50% of European ports equipped with shore power at one or more berths. However, despite this progress, a significant gap remains.
The European Sea Ports Organisation (ESPO) has flagged grid limitations as a major roadblock in Europe. The same holds true for major U.S. ports like Los Angeles, Miami, Seattle and Houston, where grid capacity is already stretched thin. Extreme weather events, from hurricanes in the U.S. Gulf Coast to heatwaves in Southern Europe, further strain power grids, causing major disruptions in electrical service. Ports cannot rely on an energy source that might not always be available.
Cost is another critical barrier. Infrastructure upgrades are prohibitively expensive, particularly for smaller ports. Many port authorities face high fixed electricity costs for power they only need part of the year, while the price of shore power remains too high for many shipowners to justify plugging in. According to Sustainable World Ports, the cost of transporting electricity from the local grid to a port terminal and setting up the necessary connections can range from $300,000 to $4 million per berth, depending on location and power requirements. Even where shore power is available, ports often struggle to supply multiple vessels simultaneously due to grid limitations.
Regulatory uncertainty compounds the issue. Europe’s FuelEU Maritime regulation requires container ships over 5,000 GT and passenger vessels to use shoreside power from 2030, with penalties for non-compliance. According to the International Council on Clean Transportation (ICCT), shore power capacity across EU ports must triple to meet demand. In the U.S., California’s Air Resources Board (CARB) At-Berth Regulation mandates that container, reefer and cruise vessels are required to cold iron, driving shore power adoption in the region.
A scalable, flexible alternative to grid dependency
Hydrogen is widely recognized as a key player in maritime decarbonisation, but pure hydrogen presents challenges – it’s costly to transport, difficult to store, and infrastructure-intensive. That’s where methanol comes in.
Methanol is six times more energy-dense than compressed hydrogen and is already available at over 125 ports according to Methanex[1], making it a near-term solution rather than a decades-away concept. With methanol-to-hydrogen reforming, ports can generate fuel-cell-grade hydrogen on-site and on-demand, using methanol and water – eliminating reliance on shore power infrastructure. This approach eliminates 99% of EPA-regulated pollutants, including NOx, SOx, particulate matter, hydrocarbons, and carbon monoxide, and can reduce greenhouse gas emissions by up to 85% with green methanol.
Unlike grid-dependent shore power, methanol-to-hydrogen technology provides a stable, uninterrupted energy source that ports can scale as needed. On-site, on-demand electricity is not just a cleaner solution; it’s a practical and immediate path toward energy independence. Adding to its appeal, the solution operates quietly with low vibration - an important factor for urban port integration. Additionally, this technology can be applied beyond vessel shore power, offering a clean energy alternative for port equipment such as cranes, container handlers, and other terminal operations. By adopting common technology across multiple applications, infrastructure investments can be streamlined to accelerate port-wide emissions reductions.
Pioneering port decarbonisation
A real-world example of methanol-to-hydrogen’s potential is e1 Marine’s partnership with STAX Engineering. With funding from CARB and South Coast AQMD, this project will deploy in 2025, demonstrating how methanol-based hydrogen can power emissions capture and control systems for ocean-going vessels at berth.
This initiative will show how methanol-to-hydrogen technology is not just viable but effective, providing clean, cost-efficient shoreside power while significantly reducing emissions. The lessons learned here will be directly applicable to EU and Asian ports facing similar electrification challenges. e1 Marine’s solution is already demonstrating its viability, with a working prototype system in Element 1’s land-based containerized energy unit and the Hydrogen One tugboat showcasing real-world applications.
Rethinking shore power incentives & industry collaboration
Current regulations favour grid-based shore power, yet there is no universal framework governing compatibility standards across alternative maritime power solutions. This misalignment extends beyond shore power infrastructure to fuel-flexible alternatives, creating a bottleneck in widespread adoption. The certification of methanol-to-hydrogen technology is a step beyond this, as the technology does not yet have a clear, standardised regulatory pathway for deployment.
For this transition to happen at the necessary speed, industry stakeholders must address compatibility and certification challenges in parallel. Establishing consistent performance and safety standards for alternative power sources—including methanol-to-hydrogen—will be critical to ensuring long-term viability. Some ports may even leapfrog traditional standardization processes, opting for modular, fuel-flexible solutions that can be scaled rapidly without waiting for rigid global standards to catch up. Policymakers must introduce clear adoption pathways and incentives that support these solutions rather than narrowly focusing on grid infrastructure.
This isn’t just about technology readiness - it’s about navigating real-world adoption challenges. Deploying new energy solutions into ports requires integration with existing infrastructure while ensuring compliance with local, national, and international regulations. Additionally, each market has unique voltage, frequency, and compliance demands, requiring case-by-case adaptation for different operational environments.
Success depends on collaboration between industry stakeholders - ports, shipowners, and technology providers must work together to integrate methanol-based hydrogen into their decarbonization strategies. Classification societies will also play a crucial role in developing standardized safety and performance guidelines, giving shipowners the confidence to invest in scalable, future-proof solutions.
Time for action
Change is already happening. While some may be reluctant to be first movers, ports that embrace this technology now won’t just comply with future regulations - they’ll gain a competitive edge by securing reliable, clean power without the risks of grid dependency.
If we’re serious about maritime decarbonization, we can’t afford to wait for the grid to catch up. The technology exists, the demand is there, and the opportunity is now. Ports need clean, flexible power today, and methanol-to-hydrogen technology is ready to deliver.
[1] https://www.methanex.com/about-methanol/marine-fuel/
