Marco Polo Blue Deal: Sri Lanka poised to lead Indian Ocean’s green energy revolution

By Shanika Gamage

Charting a bold new course towards a clean energy future, the Marco Polo Blue Deal is the ultimate business case for the future of Sri Lanka’s economy in the 21st century.

Led by the Ceylon Italy Blue Economy Association (CIBEA) and its visionary President Vittorio Coco, this landmark initiative positions Sri Lanka as a central clean energy hub in the Indian Ocean, uniting innovation, diplomacy, and sustainable industrial transformation.

The project builds on over a decade of commitment by Coco, who first introduced hydrogen-powered mobility to Sri Lanka in 2012. In 2023, he established the CIBEA with support from Sri Lankan Ministries, the Sri Lanka Ports Authority, and international academic institutions. With a new, expanded vision, the Marco Polo Blue Deal now seeks the endorsement of Sri Lanka’s national leadership and collaboration with the Indian Ocean Rim Association (IORA) to realise its full potential.

From vision to strategy: The Eco-Energy Triangle

At the core of the initiative lies the creation of a Net Zero Investment Zone, anchored in the Eco-Energy Triangle connecting Trincomalee, Pulmoddai, and Vavuniya:

• Trincomalee: A green hydrogen and e-fuels bunkering hub for maritime transport.
• Pulmoddai: The most promising site—already inspected by the International Atomic Energy Agency (IAEA) and Sri Lanka Atomic Energy Board (SLAEB)—for thorium-based nuclear energy, due to its rich monazite/thorium deposits.
• Vavuniya: Centre for Sustainable Aviation Fuel (SAF) production through Alcohol-to-Jet (ATJ) technology, using sugarcane grown under agrivoltaic systems.

This trio of zones combines renewable energy, cutting-edge technology, and agri-industrial innovation to make Sri Lanka a model of green infrastructure in the Indian Ocean region.

A market-driven opportunity backed by global demand

This initiative responds directly to the colossal global demand for decarbonisation in the maritime and aviation sectors. Projections from global agencies signal an enormous market for green fuels. According to the Global Maritime Forum (May 2024): “Projections show that shipping’s demand for e-fuels could rapidly scale to over 500 million tons by 2040, rising to 600 million tons by 2050.” Similarly, in aviation, the International Air Transport Association (IATA) and Transparency Market Research report that production must increase from 100 million litres today to at least 449 billion litres by 2050.

The Sustainable Aviation Fuel Market Size Report – 2050 estimates the aviation sector will require 450-500 million tons of renewable jet fuel per year to meet net zero targets.

“The Marco Polo Blue Deal is a game-changer for Sri Lanka’s sustainable energy industry,” stated Coco. “It’s a real leap forward, leveraging bold application of innovative technologies with abundant domestic raw materials. By integrating solar power, next-generation thorium-powered Small Modular Reactors (SMRs), ocean water, and captured CO2, we will produce green hydrogen and e-fuels on an industrial scale.”

“This immense emerging market will attract global investors and top-tier international fuel bunkering developers,” he added. “The Marco Polo Blue Deal is a unique proposition for transformative foreign direct investment. It’s more than an energy project—it’s an invitation to join a sustainable, trans-oceanic energy supply chain strategy, with Sri Lanka at its epicentre.”

Geopolitical alignment and academic foundations

Momentum behind the Marco Polo Blue Deal is bolstered by two major international agreements announced in 2025:

• A bilateral MoU between Italy and Sri Lanka to expand economic cooperation.
• A tripartite MoU between Sri Lanka, India, and the UAE to jointly develop Trincomalee as a regional clean energy hub.

These geopolitical developments are supported by academic groundwork, including a 2024 feasibility framework from the University of Genoa, commissioned by the CIBEA, to guide clean fuel infrastructure planning across IORA island nations.

Why thorium? The strategic energy choice

The Marco Polo Blue Deal introduces thorium as a core energy solution for green hydrogen production. A recent study from the Wayamba University of Sri Lanka highlights its advantages: “Thorium, a potential alternative nuclear fuel with superior attributes compared to uranium, has garnered attention for its abundance, reduced waste generation, and inherent proliferation resistance. A primary source of thorium, Sri Lanka, endowed with significant monazite deposits, presents a unique opportunity to achieve sustainable energy independence through thorium-based energy production.”

Sri Lanka’s SMR thorium-powered innovation advocated by the CIBEA is both timely and globally significant.

Next steps: High-level endorsement and regional leadership

The CIBEA now seeks the endorsement of the President of Sri Lanka, the Cabinet, and the Foreign Affairs Ministry—particularly in the Ministry’s role as the current Chair of the IORA.

The next critical step is forming a High-Level Working Group comprising the IORA Secretariat, relevant Sri Lankan Ministries, esteemed international academics, and key private stakeholders. This group will coordinate and implement this ambitious vision. Its principal outcome will be organising a pledging conclave to raise the necessary funds for a comprehensive feasibility study. Key international partners, including the IORA, Partnership for Global Infrastructure and Investment (PGII G7), EU Global Gateway, Global Environment Facility (GEF), United Nations Industrial Development Organization (UNIDO), and the World Bank (which recently lifted its ban on financing nuclear projects in emerging countries), will be approached for assistance and support.

“This is not just about clean energy—it’s about redefining Sri Lanka’s place on the global industrial map,” Coco concluded. “The Marco Polo Blue Deal blends diplomacy, science, and economic foresight to secure a sustainable future for generations to come.”

The CIBEA is a Colombo-based organisation founded in 2023 to promote sustainable economic collaboration between Italy and Sri Lanka, particularly in maritime, clean energy, and blue economy sectors. Its Founder and President, Vittorio Coco, is a longstanding advocate of hydrogen innovation and international sustainability partnerships.