Panama Canal’s journey to net-zero starts with hybrid tugs

To promote maritime decarbonisation and reward first movers in low-carbon shipping, ACP instituted the NetZero Slot reservation system in October 2025.

This grants priority transit rights to dual-fuel Neopanamax vessels that use conventional fuels in combination with green methanol, green ammonia, or bioLNG, which have full-cycle carbon intensities that are equal to or less than 75 gCO,e/MJ. As explained by Mitsui & Co Global Strategic Studies Institute’s Sonomi Omori, ship operators can get a NetZero Slot guaranteeing passage within 24 hours of their selected date during the designated week.

They receive just-in-time transit service that avoids delays, slowdowns, and accelerations, which all result in fuel inefficiency. Currently, operations are limited to one Neopanamax vessel per week.

ACP said this initiative promotes early investments in energy efficiency and alternative fuels, even before they are fully available in the region, reaffirming the canal’s commitment to progressive emissions reductions and the institutional goal of net-zero emissions by 2050.

Hybrid tugs and Scope 1

Floating equipment, including tugs and dredgers, accounted for almost 24% of the canal’s Scope 1 and Scope 2 GHG emissions in fiscal year 2024.

The authority’s tug fleet accounted for the lion’s share of those emissions – slightly over 17%. That’s why ACP is spending more than US$300M on building one of the largest fleets of hybrid-propulsion tugs in the world.

It originally ordered 10 newbuild tractor tugs in 2023 but has since exercised an option to expand the newbuilding programme to 20 hybrid-electric vessels at Spain’s Astilleros Armon.

The tractor tug newbuild programme is part of the authority’s major capital improvement plan that will be overseen by Ilya Espino de Marotta, who will take over as ACP administrator in October.

A professional engineer, Ms Espino de Marotta is well prepared for her new role, having spent the last four decades at the canal, most recently as deputy administrator and chief sustainability officer.

Her appointment is historic: she is the first female administrator, and she will be charged with overseeing the authority’s US$8.5Bn, 10-year master plan to create a trans-isthmus logistics corridor and energy hub.

Ms Espino de Marotta directed the authority’s US$5.4Bn expansion, that added a third lock system for larger Neopanamax vessels.

During a recent interview with the Council on Foreign Relations, she addressed the authority’s newbuilding programme, noting ACP is “basically replacing” its tug fleet with hybrid tugs and will use renewable diesel to “drop emissions” under Scope 1.canal’s maritime operations

“Hybrid tugboats can be counted as a cornerstone of the canal’s decarbonisation plan”

ACP has already integrated the first two hybrid tugs into its fleet, taking delivery of the initial vessel, Isla Barro Colorado, from Armon in July 2025, with five more already completed, according to the shipbuilder.

With an overall length of almost 29 m, beam of 14 m, and maximum draught of just over 6 m, each of these hybrid-electric tractor tugs will be equipped with two 2,331-kW Wabtec 8L250 MDA marine diesel engines, and a 445-kW Corvus Orca battery pack to drive two thrusters and generate 80 tonnes of bollard pull.

Wabtec’s Latin American channel partner Marinsa International is supporting the installation and commissioning of the engines in Spain, along with the service support of the operating fleet in Panama.

Combining conventional diesel engines with batteries yields several advantages from both an environmental perspective and an operational standpoint. Hybrid propulsion reduces the amount of CO2 emitted during transits and mobilisations and increases the available power for ship handling and towage.

These tugs also have a FiFi1 system for fighting fires and enhanced accommodation for crew. “With a propulsion system that combines diesel engines with electric power, hybrid tugboats can be counted as a cornerstone of the canal’s decarbonisation plan,” said Marinsa.

Their energy storage systems reduce fuel consumption, maintenance, noise, and emissions. During periods of low power demand, they can operate solely on battery power, enabling zero-emissions operations, while batteries boost power when high loads are required, such as during ship towage.

The tugs will enhance the canal’s operational efficiency as they can operate reliably for up to 700 hours per month, which the authority said is beyond that typically seen in conventional ports.

“This resilience ensures an uninterrupted, competitive service that meets global logistics standards and helps the ACP maintain the commitment they have made to realising a sustainable future,” said the authority.

“Due to cleaner operations, these tugboats contribute to improved air quality in communities near port facilities,” said ACP. “In this way, hybrid tugboats are vital to Panama’s natural heritage and local economies,” it said.

Reduced fuel consumption and maintenance requirements translate into lower opex. Additionally, using battery power for peak shaving allows the main engines or generators to operate consistently at their most efficient, optimal load.

And using energy storage for low- and zero-emissions operation means less wear and fewer operating hours on the engines, extending component life and time between overhauls.

“Engine wear is estimated to be reduced by 50%, ensuring more durable and optimised performance over time,” said ACP.

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