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Writer's pictureKyle Mendes
3 min read

The European Union aims to have 2% of its shipping run on green hydrogen by 2030

Green hydrogen shipping

EU Targets Sustainable Maritime Future with Green Hydrogen Goals

The European Union (EU) in a bold move towards sustainable maritime transport, has set ambitious targets to have 2% of its shipping fleet running on green hydrogen by 2030. This plan marks an important step in reducing carbon emissions in the shipping industry as it has been a major contributor to global greenhouse gas emissions. The main hindrance is that the production of green hydrogen-based fuels requires huge capital investments and infrastructural developments.


Advancing Green Hydrogen in Europe’s Shipping Sector: Projects and Potential

European Initiatives and Impact There are currently 17 green hydrogen projects across Europe in different stages of development. All these projects have the potential to meet nearly 4% of the EU shipping sector's energy demand by the end of this decade. Transport & Environment (T&E), an NGO advocating for clean transport and energy, make note that these projects represent a crucial opportunity to advance sustainable energy solutions in maritime transport.





Navigating Challenges in Green Hydrogen Adoption for Maritime Industry

Challenges and Opportunities One major hurdle that the maritime industry faces is the coordination between fuel producers and shipping operators. Fuel producers are cautious resulting from lack of demand signals from the shipping sector while shipping operators are hesitant to sign agreements until green hydrogen becomes more cost-effective and widely available.


Policy Recommendations to Propel Green Hydrogen Use in Shipping

Policy Recommendations and Regulatory Framework To promote the widespread use of green hydrogen in shipping, T&E suggests that EU member states should require a minimum proportion of shipping fuels to come from e-fuels (synthetic fuels) by 2030. Such requirements would offer clear investment certainty for developers and shipping firms. Additionally, policies supporting carbon pricing, emissions regulations, and research funding are essential for fostering a favorable environment for sustainable energy transitions.


Global Impact: South Africa’s Role in the Green Hydrogen Economy

Global Implications and South African Potential: Beyond Europe, the global impact of the green hydrogen movement is profound. South Africa, blessed with abundant solar and wind resources, is actively exploring hydrogen production to harness its renewable energy potential. This initiative presents South Africa with opportunities to develop infrastructure for exporting hydrogen, potentially supplying markets in Europe and around the world. However, achieving this requires supportive policies and incentives to attract investments in hydrogen production and foster international partnerships. These measures are essential for South Africa to capitalize on its renewable energy resources and play a significant role in the expanding global hydrogen economy.


Technological and Infrastructural Challenges of Hydrogen-Powered Ships

The feasibility of hydrogen-powered ships holds both promise and complexity. Key factors include the technological readiness and efficiency of hydrogen fuel cells, which are essential to meet stringent standards for power output, reliability, and safety during extended maritime operations. Another critical challenge is developing the necessary infrastructure, such as hydrogen production facilities, storage solutions, and distribution networks. Currently, the cost competitiveness of producing green hydrogen is higher than that of traditional fuels, requiring subsidies and economies of scale to address this disparity. Regulatory frameworks also need to evolve to ensure the safe handling and storage of hydrogen aboard ships, aligning with global maritime standards.


What Does This Mean for Importers and Exporters

For importers and exporters, choosing hydrogen-powered ships brings clear benefits. Firstly, hydrogen fuel cells are more efficient than traditional engines, which can lower long-term operational costs by reducing fuel use and improving transport schedule reliability. Although setting up hydrogen infrastructure initially requires significant investment, ongoing advances in technology should eventually make production cheaper. This cost-effectiveness is crucial because global markets are increasingly focused on sustainability due to regulations and consumer preferences.

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