Securing Financial Support for Hydrogen-Powered Vessels: Insights from Riviera Conference
Key Ideas
- Obtaining finance for hydrogen-fuelled vessels is becoming more accessible with a focus on revenue generation and low capital expenditure.
- Different financing options are available, including equity-backed finance for fleet building, bank finance for profitable projects, and leasing with long-term charters.
- The industry emphasizes the importance of demonstrating business cases, availability of green hydrogen supply, and selecting suitable technology and fuel based on various factors.
- European Union funding opportunities, such as bank auctions and innovation funds, are supporting clean-hydrogen partnerships and demonstration projects for maritime applications.
The Riviera's Maritime Hybrid, Electric & Hydrogen Fuel Cell Conference in Bergen, Norway, highlighted the increasing accessibility of financing for hydrogen-powered vessels. Industry experts discussed the need for projects to showcase revenue generation potential and low capital expenditure to attract funding. Danske Bank representatives mentioned the availability of equity-backed finance for fleet projects and bank finance for profitable ventures. Additionally, leasing options were considered viable with long-term charters and a reliable fuel supply. Ivan Østvik from LH2 Shipping presented a business case using the example of the liquid hydrogen-powered vessel Hydra in Norway. He stressed the importance of demonstrating business cases and ensuring a green hydrogen supply. Technology assessment included various fuel cell types, with PEM fuel cells deemed suitable for specific shipping applications. Grzegorz Pawelec from Hydrogen Europe discussed the latest EU regulations and funding sources for clean-hydrogen projects, including bank auctions and FuelEU Maritime. The EU's upcoming funding series aims to support fuel production, bunkering, and supply for maritime applications. Pilot projects are already underway with EU funding for newbuilds and retrofits on cruise and cargo ships. The conference focused on key trends, regulations, and the development of zero-emission ecosystems in the maritime industry.