The role of ports in the energy sector has long been significant, with over a third of current shipping linked to the transportation and trade in fossil fuels.

However, the dominance of coal, oil, and gas will diminish as the world shifts toward cleaner energy solutions. How do ports and the wider maritime sector fit into the new, green energy world?

In this evolving landscape, ports are emerging as critical enablers of the energy transition. They are supporting the rollout of offshore wind, facilitating the trade of sustainable fuels, and will increasingly serve as multimodal hubs for electrified transportation, all while continuing to transport roughly 90% of traded goods, connecting communities around the world.

By fulfilling these roles, ports of all shapes and sizes have the potential to play a key role in the journey to net zero – not just in managing their own emissions, but by becoming energy hubs that support the transition to secure, sustainable, and cost-effective power systems. As gateways to global trade, ports fuel urban economies by driving supply chains, fostering industrial growth, enabling innovation, and sustaining the livelihoods of billions. Ports have also been vital to the global energy sector, acting as strategic hubs for the import, export, and distribution of fossil fuels. Yet, the global shift to a greener future is reshaping the energy landscape. A profound shift is underway in how energy is produced, stored, transported, and consumed – with renewable sources like wind and solar being deployed at an unprecedented scale to deliver clean, sustainable power. In this changing context, ports and port cities have an opportunity to develop important and mutually beneficial roles in this new energy system.

Realizing the potential

There is increasing recognition that a step-change in port and energy investment will be required to support countries’ decarbonization goals. Work completed by Arup on behalf of the Global Maritime Forum estimates that as a sector, shipping’s energy needs alone could require a $4 trillion investment to develop renewable infrastructure, hydrogen production, and fuel production facilities.

Without changes in policy, financing, and wider support to drive change, ports risk becoming bottlenecks to the green energy transition. At Arup, we’re supporting policymakers, the energy sector, and investors – as well as ports themselves – to accelerate this transition.

Our new research with C40 Cities explores a wave of socioeconomic benefits for local people, businesses, and investors that can be unlocked by port cities through three key opportunities:

  1. Investing in Offshore Wind Hubs: Ports can serve as vital staging grounds for manufacturing and deploying offshore wind turbines. This not only boosts exports but also creates thousands of skilled green jobs in the community.
  2. Investing in Sustainable Fuel Hubs: Ports and port cities can help the world move away from fossil fuels by becoming centers for producing and exporting cleaner fuels. This includes both clean fuel as cargo to power transportation and industry and refuel ships. This supports global efforts to reduce emissions and creates local jobs and investment.
  3. Investing in Electrification Hubs: By providing clean electricity to ships, trucks, and port equipment, ports can drive the shift to electrified transportation and cut carbon and air pollution. Supplementing this with on-site renewable generation and storage can also create decentralized, resilient port energy systems.

Ports as Offshore Wind Hubs

Offshore wind (OSW) is, and will continue to be, key to decarbonizing the global energy system. Ports play two essential roles in making this happen.

First, as marshalling and installation (M&I) hubs, large ports store and pre-assemble turbine components before loading them onto installation vessels. These ports need significant space, heavy-duty quaysides, and deep-water access. Re-powering and decommissioning will become increasingly important for such ports too. Their second role is equally vital: serving as operations bases for maintenance activities, hosting the service vessels, spare parts, and crews that keep our offshore wind farms running efficiently. O&M ports are typically smaller than M&I ports and there is therefore potential for a wider range of ports to play a role.

The sector is growing rapidly, with global deployment of offshore wind expected to grow from 73 GW to reach 258 GW by 2030 (according to 2024 4C Offshore: Market Overview Report). The scale of change required to deliver this is immense and will only be met through the development of new greenfield ports in addition to huge expansions of existing ports. For the UK alone, estimates show that over £50 billion in construction capital expenditure is needed to deliver the OSW pipeline to 2030.

With investments of this scale, ports, local leaders and governments need to be strategic and look for potential synergies, which can increase the value that can be generated from their investment. This is something we explored through our work with the Offshore Renewable Energy Catapult, where we identified the infrastructure requirements and the associated business and investment cases for manufacturing and installation of floating offshore wind (FLOW) in the UK.

Offshore wind installation at a port
Windfarm installation vessel at a port

Our work highlighted that it may be desirable to develop regional port clusters which house both manufacturing at the same site as marshalling and installation facilities. This strengthens the case for port investment through stable, long-term leasing arrangements from manufacturers whilst boosting the wider port cluster offering. The broader development of the ecosystem would also encourage mature supply chains to become established, bringing further social and economic benefits.

These manufacturing facilities would require significant grid connections which could support wider electrification of energy users, enabling ports to commercialise this opportunity for other local transport and industrial users (more on this below).

Similarly, as port activities expand with the introduction of M&I and manufacturing facilities, local road and rail connections may need to be improved. By co-locating other hubs of activity including wider industry and other employment hubs, utilisation of these assets can be increased, unlocking social and economic benefits that extend beyond OSW operations.

There are community and employment benefits here too. OSW manufacturing and M&I ports require a skilled workforce – something which isn’t available in every location. As part of our Australian Offshore Wind Market Study, we calculated that for transport and installation alone, 1,844 FTE jobs are created per GW of OSW installed. By clustering M&I ports with manufacturing and sectors with similar labour requirements such as alternative fuels production, ports could become a hub that attracts and maintains the necessary skilled labour.

Ports as sustainable fuels hubs

A resilient, low carbon and cost-effective global energy system will require sustainable fuels as well as green electricity. Hydrogen-derived, bio-derived and carbon capture and storage-enabled fuels, can – when produced in the right way – provide effective routes to decarbonisation for industry, heavy transport and power systems. Ports will play a role in the production of these fuels, transporting them within and across borders, and distributing them to local off-takers, including ships.

Publication
Opportunities for the UK to kick-start shipping’s transition to zero greenhouse gas emission fuel
Opportunities for the UK to kick-start shipping’s transition to zero greenhouse gas emission fuel

Locations with significant renewable energy generation potential can produce these fuels at a lower cost. These locations – primarily in the Global South – are often remote from demand centres in the Global North. Our research has shown that the cost of transporting these fuels is small compared to the cost of production. This means we might see regional supply and demand systems. For example, hubs in North Africa producing fuels for Northern Europe, complementing domestic production. Through green energy terminals, ports will therefore be crucial in providing connectivity for the trade of these fuels (and similarly for captured carbon).

Some forward-looking ports are already preparing for this future. For example, Arup are working with green fuels company, Vast Renewables and its consortium partner Mabanaft to project manage the development of its green methanol plant, SM1 which is part of the Port Augusta Green Energy Hub in South Australia. The project’s success could unlock green fuels production in Australia and enable exports to global markets.

The bunkering sector will also change. Ports already play a key role in distributing fuels to marine users, but the today's marine fuel market operates through a handful of dominant bunkering hubs, which serve as strategic refuelling points along major shipping routes. There will be a shift in market dynamics with the introduction of sustainable fuels which may require both a more diverse network to handle multiple fuel types and a geographically dispersed system to account for alternative fuels' lower energy density. Ports who currently do not participate in the global bunker sector may have an opportunity to capture a share of this new market.

This is something we explored with the Port of Tyne, where we assessed the feasibility for the port to become a methanol storage and bunkering hub for the Clean Tyne Shipping Corridor to Europe.

The global energy transition requires taking a holistic approach, recognising the interdependence of the energy sector and the wider built environment. Whether it's supporting offshore wind, sustainable fuel trade, or transport decarbonisation, ports have significant potential as green energy hubs, which teams across Arup are helping realise.

Alan Thomson

Global Energy Leader, Arup

Ports as electrication hubs

Ports are naturally intermodal transport hubs, acting as the interchange of ships, road and rail in the movement of goods and people. Increasingly, these services are seeking to electrify, whether that’s with onshore power for berthed vessels, or the replacement of diesel HGVs with battery-powered alternatives. This is to reduce the carbon intensity of their operations, but also to mitigate local impacts to communities and the environment. There is an opportunity for ports to enable electrified, smart mobility for both land and sea.

Project
Blueprint for Zero Emission Vessel Transition
Boats in San Francisco bay

One challenge will be how to meet the significantly increased demand for electricity. Ports are typically energy-constrained but grid upgrades are costly and often have long lead times. There is therefore a role for ports as energy generators as well as consumers to reduce reliance on the grid and lessen the scale of grid reinforcement required. This will include a combination of on-site renewables, energy storage and ‘private wire’ connections to dedicated off-site renewables. For example, in the USA, Arup worked with Aurora Marine Design to develop a Zero Emission Vessel Feasibility Blueprint for the San Francisco Bay Ferry. Arup’s analysis found that the Downtown Terminal could see a peak demand of 17 MW which would not be feasible with current capacity constraints. The Blueprint, therefore, provided guidance on meeting each terminal's power requirements by deploying a battery energy storage system.

Similarly, in the UK, Arup has been supporting the Port of Dover with their green corridor energy strategy and high voltage infrastructure plan. With the introduction of a battery-electric vessels on the Short Straights between England and France, we found that the port’s electrical power demand could increase up to 20 times current levels by 2035. This represents a significant challenge – one which requires careful planning to consider how the port’s power demands fit into the future local energy system.

By acting as hubs of significant electrified demand and supply, ports have the potential to become catalysts for wider change, playing their part in a resillient energy system that delivers for both industry and local communities.

Ports as clean energy hubs: How port cities can power the global energy transition

As part of our ongoing partnership with C40 Cities, we are exploring the investment opportunities that cities, collaborating with ports and energy industry, can unleash as part of the global energy transition. Our new ‘Ports as Clean Energy Hubs’ report charts a course for port cities to accelerate this development and become hubs for offshore wind, sustainable fuels, and electrification – with a potential to unlock billions in investment, create high-quality jobs, and deliver cleaner air for millions of people.

Ports as Clean Energy Hubs
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