European Union's Green Hydrogen Ambitions for Shipping: Challenges and Opportunities
Key Ideas
- Transport & Environment (T&E) identifies key green hydrogen projects in Europe, with the potential to fulfill 4% of EU shipping energy demand by 2030.
- E-fuels production faces challenges due to the lack of clear demand signals from shipping operators and the need for cost reduction.
- T&E recommends EU member states mandate 1.2% of shipping fuels to be e-fuels by 2030 to boost investment certainty in the sector.
- While Denmark leads in planned hydrogen volume projects, Spain takes the lead in potential fuel supplies for shipping among the European countries.
The European Union is targeting to have 2% of its shipping powered by green hydrogen by 2030. Transport & Environment (T&E), an NGO advocating for clean transport and energy, has identified multiple green hydrogen projects across Europe that, if operational, could meet a substantial portion of the EU shipping energy demand. However, the production of green hydrogen-based fuels requires significant capital investments. T&E highlights a dilemma in the shipping industry where e-fuels producers are hesitant to invest without clear demand signals from shipping operators, while operators wait for these fuels to become more cost-effective. To address this, T&E suggests that EU member states should mandate a percentage of shipping fuels to be e-fuels by 2030 to offer investment certainty. Denmark is noted as a significant contributor to planned hydrogen projects, while Spain stands out for its potential fuel supplies. The UK has limited projects in this area, while Italy and Greece currently lack any identified initiatives.
Topics
Projects
Investment
Green Energy
Shipping Industry
Regulation
European Union
Italy
Spain
Denmark
United Kingdom
Latest News