China’s green corridor push hits commercial reality check

China has emerged as a major player in the global green shipping corridor movement, with at least 21 initiatives linked to the country, although most remain in their early stages and only one has progressed towards commercial operation, according to a new report from the Global Maritime Forum.

The study, released during the organisation’s annual summit in Shanghai, shows that China accounts for nearly a fifth of the world’s green shipping corridor initiatives, having added ten new projects in 2025 alone.

However, of the 21 initiatives identified by the end of June this year, 12 were still at the initiation stage, five were exploring feasibility, three had reached preparation and just one had entered the realisation phase.

The most advanced is the Australia-East Asia Iron Ore corridor, involving the deployment of ammonia-powered bulk carriers between Australia’s Pilbara region and China.

The report also highlights how much of the sector’s future fuel supply is increasingly concentrated in China. The country accounts for around 80% of global green methanol production capacity that has passed final investment decision and more than 40% of comparable green ammonia capacity.

Chinese projects under development are targeting annual production of 30m tonnes of green methanol and 15m tonnes of green ammonia by the early 2030s, although the report cautions that not all announced capacity will reach the investment stage.

Progress is also being made on the bunkering side. More than ten Chinese ports have established or are developing methanol bunkering capabilities, with volumes reaching 100,000 tonnes by mid-2026, up from 64,000 tonnes in the whole of 2025. Shanghai accounts for about 90% of that activity.

Despite those advances, the economics remain challenging. The report found that green methanol and ammonia still cost two to three times as much as conventional marine fuels, even with China’s competitive production costs. Battery-electric cargo vessels are also around twice as expensive as their conventional counterparts.

Demand remains another stumbling block. Research cited by the Global Maritime Forum suggests that while 65% of cargo owners are willing to pay more for low-carbon shipping, the average premium they are prepared to accept is just 3%.

The report calls for further investment in bunkering and fuel distribution infrastructure, closer alignment between Chinese and international fuel certification standards, and policy measures to narrow the price gap.

The findings come as China begins turning some of its green shipping plans into commercial operations. Earlier this month, CMB.TECH’s 210,000 dwt newcastlemax Mineral Europa, chartered to Australian miner Fortescue, became the first ammonia-powered dry bulk carrier to embark on a commercial voyage. The vessel subsequently took on 1,000 tonnes of green ammonia at Zhoushan in the world’s first commercial ship-to-ship bunkering operation involving the fuel.

China also established the International Green Shipping Corridor Alliance in September, bringing together 45 companies and organisations from 12 countries to coordinate work on alternative fuels, green vessels and port infrastructure.

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