A lack of regulatory certainty is preventing most green e-fuels projects for the maritime sector from moving beyond the planning stage, according to the think-tank Transport & Environment, in the results of a study published on Thursday 18 December.
T&E has identified up to 80 green hydrogen and e-fuels projects that could be used to power ships, representing more than 3.6 million tonnes of oil equivalent (Mtoe) by 2032. However, T&E found that only 5% of these volumes are clearly dedicated to the maritime sector, while only a small proportion of projects have reached the final investment decision stage or have become operational.
At the moment, Spain, Denmark, Norway and France are leading the way in the production of green fuels that can be used for maritime transport. Among e-ammonia and e-methanol projects that include the maritime or transport sectors as potential buyers, the maritime sector generally constitutes the largest potential offtaker, according to the study's findings. Strong demand from the shipping sector would provide producers with a much-needed guarantee that there is a solid market for their green fuels.
T&E believes that “the EU should introduce more ambitious green fuel requirements for the shipping sector to ensure projects get off the ground (...) which would deliver jobs and improve Europe’s energy security”.
Read the study: https://aeur.eu/f/k49 (Original version in French by Anne Damiani)