The global shipping industry is on the verge of a transformation, driven by new International Maritime Organization (IMO) regulations aimed at cutting greenhouse gas (GHG) emissions by 2050.

By April 2, 2025, the IMO is expected to finalize strict new emission standards that will push ships toward low-carbon or zero-emission fuels. The maritime sector, responsible for nearly 3% of global CO₂ emissions, faces mounting pressure to decarbonize. However, the technology and infrastructure needed to support green fuels such as hydrogen, ammonia, and e-fuels are still in their infancy.

Antigua and Barbuda, determined to stay ahead of these global shifts, is exploring a controversial plan: demolishing Rat Island – a tiny, rocky once British colonial outcrop near the St. John’s cargo port – to build a green energy storage facility.

Rat Island, largely abandoned today, has a deep historical footprint. Once a British military fort known as The Citadel in the 1600s, it later became a quarantine site for people diagnosed with leprosy and mental illnesses during the 19th century.

Historical and Archaeological Society the Museum of Antigua and Barbuda Newsletter

Historical and Archaeological Society the Museum of Antigua and Barbuda Newsletter Historical and Archaeological Society the Museum of Antigua and Barbuda Newsletter

Now, the Antiguan government, led by Prime Minister Gaston Browne and supported by Port Authority CEO Darwin Telemaque, sees it as the ideal location for a storage hub for green fuels.

“We’re going to put the storage capabilities in that space to facilitate green hydrogen or green ammonia, any of the e-fuels that they end up with. Because we want to have it for the cruise ships, the cargo ships, all the ships,” explained Telemaque.

This effort aligns with Antigua’s broader goal of modernizing its port infrastructure to meet future energy demands. With the St. John’s port recently rebuilt, the next phase involves integrating automation, digitalization, and sustainable energy sources. “The vision is to transform ports, to make the marinas into climate smart, sustainable infrastructure through an inclusive green port resiliency decarbonized project. This is what we call it. So green hydrogen is an option, green ammonia is an option, and green methanol.”

“In addition to doing this, we have excess energy. Our most expensive commodity in Antigua these days is our water.  It’s a lot of money to make it.  We have to run a lot of fossil fuel to make that. So, if we get  extra power from renewables, we can turn on our power plant there, reducing the cost and improving that as well.”

Economic Prospects vs. Rising Costs

While the project promises long-term sustainability, it also raises financial concerns. Antigua’s decarbonization plan requires an estimated USD$210 million investment, sourced from grants, concessional loans, and private capital. However, the transition could also drive-up tariffs potentially doubling local shipping costs due to added surcharges like carbon fees.

The IMO regulatory changes alone could cost Antigua and Barbuda $2.35–$9.42 million annually in increased tariffs if left unmitigated. Telemaque acknowledges the challenge of balancing financial feasibility with sustainability goals.

But he sees an economic opportunity: Antigua’s maritime sector produces nearly 994,000 tons of carbon each year. By adopting shore power allowing ships to plug into clean energy instead of burning fuel the island could cut emissions while generating nearly $500 million in economic output. Charging vessels 42 cents per unit for clean energy could turn into a reliable revenue stream, given that maritime energy demand vastly exceeds local consumption needs.

Another approach under consideration is leveraging the carbon credit market. While Antigua and Barbuda’s direct emissions are too low to generate substantial carbon credits, the country could sell clean energy to visiting ships. By supplying green shore power, Antigua could become a hub for low-carbon shipping while earning revenue from energy sales.

For decades, tourism has been Antigua’s primary economic driver, contributing 80% of GDP. However, Telemaque believes a well-structured decarbonization strategy could make the maritime industry a competing economic force.

At its peak, Antigua’s ports handle 540 cruise ship calls, 4,500 yacht visits, and 604 cargo/tanker arrivals annually. The Port Authority projects that by embracing green shipping, the maritime sector could account for 60% of the nation’s $1.7 billion GDP significantly reducing the country’s reliance on tourism. “The impact is massive at 37 % with full adaptation,” he said.

Beyond financial gains, the transition is expected to create over 50 green jobs, improve air quality by cutting emissions, and enhance workforce training in the renewable energy sector.

Despite Antigua’s ambitions, the Caribbean lags in developing green port infrastructure. Most regional ports, including Antigua’s, are still unequipped to handle green fuel adoption.

“No island is an island,” Telemaque declared, arguing that a regional summit is needed to develop collective solutions. “So, my headache is you have a bunch of small islands, no consistent linkage, all needing to adapt. And not all of them can give everything that’s needed for the region to survive. So, you have to be strategic in where things are and allow for those things to connect,” he stated.

The port CEO will bring this idea with him to Singapore and London in the coming weeks to solidify Antigua’s commitment to create a green space in the maritime industry. He will also leverage plans by STEPS – Guadeloupe-based private transport company – to establish a sustainable ferry service connecting Antigua, St. Kitts, Dominica, and Guadeloupe.

A delegation from Guadeloupe visited Antigua last week as part of the INTERREG Caribbean KARULINK project, a European Union-funded initiative executed by STEPS. The implementation is expected between January 2025 and December 2027.