The green technology market is set to become more competitive and expensive now nearly $3billion of federal Clean Ports Program funding has been awarded, according to leading sustainability consultancy Tunley Environmental.
It is predicting there will be a ‘sharp pinch point' in supply and demand for certain types of equipment and that despite waivers, the program's Build American Buy American (BABA) clause will add to the challenges.
The US Environmental Protection Agency (EPA) has announced the selection of 55 awards across 27 states and territories that will receive the funding through its Clean Ports Program.
The selected applicants will work with EPA over the coming months to finalize project plans before receiving final awards and moving into the implementation phase.
Project implementation will occur over the next three to four years depending on the scope of each project.
The program is delivering funding for specific zero emissions technology such as electric vehicles, along with support for ports at an earlier stage in their decarbonization journey to develop a greenhouse gas (GHG) inventory of their activities.
The essential route to cutting those greenhouse gases is electrification of port equipment and vehicles, and continued research for a zero-emission replacement fuel for cargo ships.
With the EPA grants covering a portion of the capital expenditure costs, electrification offers emissions reduction, reduced noise and vibration, and critically a financial advantage, as electric equipment is cheaper to run than equivalent diesel.
However, Tunley Environmental, which is working with ports on the Great Lakes including Detroit to help them to decarbonize, has spelled out some of the challenges the winning ports will have to overcome on that electrification journey.
The EPA Clean Ports Program aims to inject stimulus into US manufacturing with a Build American Buy American (BABA) clause for equipment.
That clause means the product must be made in the US and the cost of its components produced domestically must be greater than 55 per cent of the total cost of all its components.
Mindful of the challenges, EPA has issued a general applicability public-interest waiver for certain types of equipment for limited periods of time – with a deadline for actually delivery no later than July 1, 2029.
Tunley says port owners need to ensure that they are meeting the BABA requirements and secondly, if importing equipment that is not compliant, they are up to speed with and follow all the waiver requirements. They also need to be aware of potential impact from delayed delivery as a result of supply chain issues.
Emily Alexander, an associate carbon scientist at Tunley, says that while BABA is a welcome boost to American business: “Ports must move fast to secure US equipment or, if that is not possible, determine what imports are eligible and what the lead in times are.
“The key point is there is likely to be an increase in supply and demand for certain types of electric equipment.
“As a result, we anticipate the green technology market is about to become much more competitive and likely more expensive as funding is released. It will be vital to secure equipment ahead of the competition and before prices spike with surging demand.
“In addition, we suggest kick-starting discussions with your local utility to ensure adequate electrical site capacity.”
Alexander added: “Port operators that receive a planning grant to begin decarbonization work will likely need to partner with an organization that specializes in developing GHG inventories to collect data and calculate the baseline carbon emissions – the first step in planning to lower your carbon impact.
“You need to know the starting point before you develop your port and organization's sustainability goals. Once your baseline is in established, strategic planning and implementation can take place, to determine how to feasibly and effectively reduce carbon emissions associated with port activity.”
She says there are many other considerations that port owners and operators need to take into account as they develop and begin to deliver their plans.
She said: “It is important to continue to build relationships with nearby communities and community partners. A large portion of the EPA Clean Port Program is to promote clean air in near-port communities.
“Ensuring your plans are communicated with partners, as well as the general community, will help keep those relationships healthy and will build trust in your organization's commitment to a healthy community.
“It is also important to consider there are other options to incrementally reduce carbon emissions and other harmful pollution that are not funded by the grant and can be explored by ports and their terminal operators.”
This includes biofuels, which can serve as a transition fuel, as it is compatible in current diesel equipment, and 100 percent biodiesel (B100) can reduce lifecycle carbon emissions by up to 74 percent, according to the US Department of Energy.
Additionally, increasing efficiency of operations can result in lower carbon emissions with no equipment change.
Alexander said: “The journey towards decarbonization will not be straightforward. Ports are complex and large systems, often with many different organizations and operations that fall within their boundaries.
“Expert advice will be important throughout the implementation process, focusing on the methods and technology available to reduce carbon emissions.
“Ongoing work will be needed to ensure emissions are being accurately monitored and reported and progress is tracked from year to year.
“The data collection process is long and can be challenging. It requires experience of creating a database, managing data, and ensuring the correct data is captured in order to ensure the baseline is calculated accurately and transparently.
“The key is to work in partnership with specialists that can provide advice and innovative solutions for sustainable development, environmental management and climate resilience.”
Source: Turnley Environmental