The following article is an op-ed piece authored by Robert Haugen , Managing Director at Hexagon Purus Maritime, Norway’s supplier of clean energy technology. It is centered around (green) hydrogen and key barriers to its widespread adoption in maritime .
The global shipping industry, responsible for approximately 3% of total greenhouse gas emissions, stands at a crucial turning point. To achieve the International Maritime Organization’s (IMO) net-zero greenhouse gas (GHG) emissions target by 2050, clean fuels must be adopted at scale.
Zero or near-zero GHG emission technologies, fuels and/or energy sources will need to represent at least 5%, and ideally 10%, of the energy used by international shipping by 2030.
Various clean fuels, including ammonia, methanol, biofuels, synthetic fuels, hydrogen, and battery electric technology, present viable options, each with its unique advantages and challenges.
The sweet spot for hydrogen is where batteries alone aren’t suitable, such as for inland or coastal cargo vessels, supply and service vessels for offshore oil and gas, wind farms, and fish farming and passenger ferries – predominantly vessels servicing predictable point-to-point routes.
Hydrogen, with its promising decarbonisation potential, is emerging as a key solution, yet several barriers remain to widespread adoption. However, concerted efforts are being made to overcome these challenges, making hydrogen a huge opportunity for the maritime sector.
Economic and market challenges
Economic and market factors play a significant role in the adoption of hydrogen. High production costs, capital requirements, limited availability of green hydrogen molecules and price difference to fossil fuels are primary barriers.
Green hydrogen, which is produced via electrolysis using renewable energy, is currently more expensive than hydrogen derived from fossil fuels. BloombergNEF reports that grey hydrogen, derived from natural gas or methane, costs $0.98-$2.93 per kilogram to produce, while green hydrogen can cost $4.5-$12 per kilogram.
However, analysis shows that by 2030, producing green hydrogen in new plants could be up to 18% cheaper than continuing to run existing grey hydrogen plants in key economies like Brazil, China, and India. Moreover, DNV’s Energy Transition Outlook 2023 calculates that for projects using on-site renewable electricity supply, the levelised cost of green hydrogen could fall to $2/kg by 2030, on the back of massive reductions in the cost of wind, solar and electrolyser equipment.
To address these economic challenges, government policies, including tax credits and subsidies, are starting to level the playing field. The US Inflation Reduction Act and the EU Hydrogen Bank are examples of initiatives aimed at reducing costs and promoting the adoption of green hydrogen.
Hydrogen infrastructure
The ‘chicken and egg’ problem of hydrogen infrastructure is another significant barrier. Maritime operators are reluctant to adopt hydrogen without adequate infrastructure, and suppliers are hesitant to invest in infrastructure without assured demand.
Integrating hydrogen with existing maritime infrastructure requires significant modifications and investments. However, several European ports are pioneering hydrogen infrastructure projects. The Port of Rotterdam is establishing a hydrogen import terminal, while the Port of Antwerp is developing infrastructure for hydrogen import and logistics.
Hexagon Purus Maritime has also supplied hydrogen storage tanks for the newly launched Sea Change ferry , a hydrogen-powered catamaran in San Francisco, California.
A hydrogen revolution
With collaborative efforts, evolving technologies and strategic initiatives, the hydrogen revolution in maritime transport is on the horizon .
This promises a cleaner, greener, and more efficient future for the industry, aligning with global decarbonisation goals and creating a sustainable shipping ecosystem. As technological and economic barriers are gradually overcome, hydrogen’s role in maritime will continue to expand, paving the way for a net-zero future.