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Category: infrastructure

  • China’s Green Hydrogen Leap

    As a maritime enthusiast for hydrogen in shipping, I have lately been disappointed about news related to hydrogen production. lately. China’s recent green hydrogen leap in production, as highlighted by Rystad Energy, are not just national milestones—they have profound implications for the global maritime industry as green hydrogen is required to transition. So next to hydrogen ships, China is also developing here rapidly.

    China’s Accelerated Green Hydrogen Production

    China is set to surpass its 2025 green hydrogen production target by the end of this year, achieving an annual output of 220,000 tonnes. This rapid advancement is primarily driven by significant investments in electrolyzer capacity and the development of extensive hydrogen infrastructure. Below graph indicates that plans to ramp up production.

    China's renewable hydrogen production capacity between 2020 and 2030
    Source: Rystad Energy

    Relevance to the Maritime Industry

    For the shipping sector transitioning to cleaner fuels is imperative, and green hydrogen emerges as a promising solution. In fact it is the basis for other fuels like green ammonia and methanol. Hydrogen can be directly used in fuel cells to power vessels with zero emissions, producing only water as a byproduct. This technology is especially viable for short-sea shipping and port operations, where refueling infrastructure can be more readily established.

    China’s Role in Maritime Decarbonization

    China’s leadership in green hydrogen production can significantly influence the maritime industry’s decarbonization efforts. Increased hydrogen availability can reduce costs and encourage the adoption of hydrogen-powered vessels. Moreover, China’s development of hydrogen pipelines, such as the 400-kilometer project by Sinopec, facilitates efficient distribution, potentially supporting maritime refueling stations.

    Challenges and the Path Forward

    While the prospects are promising, challenges persist. Hydrogen’s low energy density requires larger storage solutions, impacting vessel design. Additionally, establishing a comprehensive refueling infrastructure is crucial for widespread adoption. Collaborative efforts between energy producers, maritime stakeholders, and policymakers are essential to address these hurdles and promote standardization.

  • Can Maritime Hydrogen Overcome the Headwinds?

    When the Institute for Energy Econonomics and Financial Analysis writes a report about maritime hydrogen it is worth a read-through. Even tough they are somewhat underestimating hydrogen itself as fuel. Here is a summary. Find the full report here.

    The shipping industry is at a crossroads. It is responsible for over 700 million metric tons of CO₂ emissions every year, making it one of the world’s biggest polluters. With the International Maritime Organization (IMO) targeting net-zero emissions by 2050, the pressure is on to find cleaner alternatives to fossil fuels.

    Hydrogen-based fuels—hydrogen, ammonia, and methanol—are often discussed as solutions. But are they really viable? A recent report from IEEFA highlights the potential, challenges, and risks of these fuels. The key takeaway? Hydrogen won’t save shipping overnight.

    Hydrogen: Clean, But Costly and Complex

    Hydrogen offers a zero-carbon combustion process. In theory, it could power ships without emitting CO₂. But in practice, it faces major barriers.

    • Storage challenges: Hydrogen has low energy density, meaning ships need large storage tanks or frequent refueling.
    • Infrastructure gaps: Ports lack the bunkering and supply chains to support large-scale hydrogen use.
    • High costs: Green hydrogen costs between $4.50–$12/kg, while fossil-based hydrogen is much cheaper at $0.98–$2.93/kg.
    • Safety risks: Hydrogen is highly flammable and requires extreme pressure or cryogenic storage.

    For now, hydrogen is only viable for short-sea shipping or as a hybrid solution for auxiliary power.

    Ammonia: A Promising But Risky Alternative

    Ammonia is emerging as a potential maritime fuel, offering better storage and transport capabilities than hydrogen. However, it comes with serious downsides:

    • Highly toxic: Ammonia spills could be dangerous for marine life and crews.
    • Pollution risks: Without proper emission controls, ammonia combustion releases NOx and nitrous oxide (N₂O), a potent greenhouse gas.
    • Lower energy density: Ships using ammonia would need larger storage tanks or frequent refueling stops.

    Despite these challenges, engine prototypes for ammonia-powered ships are in development, and some companies are exploring its potential.

    Methanol: The Front-Runner for Now

    Methanol is currently the most practical option for green shipping. It is:

    ✔ Easier to store and transport than hydrogen or ammonia.
    ✔ Compatible with existing port infrastructure—120+ ports already handle methanol.
    ✔ Gaining traction—more than 200 new methanol-powered ships are on order.

    The downside? Feedstock constraints. Green methanol relies on renewable hydrogen and captured CO₂, which are not yet widely available.

    The Infrastructure & Cost Problem

    None of these fuels can succeed without major investments in infrastructure. Hydrogen and ammonia require new bunkering systems, specialized storage, and refueling networks. Even methanol, the most developed, needs expanded supply chains to meet demand.

    Additionally, green hydrogen is too expensive to compete with fossil fuels. Until costs drop, adoption will be slow. Government incentives and private investment are crucial to making these fuels viable.

    Regulations & Corporate Action

    • IMO Targets: The IMO aims for 30% CO₂ cuts by 2030, 80% by 2040, and net-zero by 2050. However, these are not yet legally binding.
    • EU Policies: The FuelEU Maritime Regulation enforces 80% lower greenhouse gas intensity by 2050.
    • Industry Commitment: Companies like Maersk, Amazon, and Unilever have pledged to use only zero-carbon ocean freight by 2040.

    Conclusion: A Long Road Ahead

    Hydrogen-based fuels are not a silver bullet. Methanol leads today, ammonia follows, and hydrogen lags behind. Cost, infrastructure, and safety challenges must be overcome before widespread adoption.

    The shipping industry must act now to avoid a dirty hydrogen lock-in—where fossil-based hydrogen becomes the norm. The future of green shipping will depend on policy, investment, and innovation.

    What do you think? Will hydrogen become the fuel of the future, or will other technologies take the lead? Let me know in the comments. 🚢💨

  • Plug Power Introduces Industry-First Spot Pricing for Green Hydrogen

    In shipping port it is perfectly doable to order a quantity of fossil fuel oil for delivery the next day. Not so for hydrogen: first sign a decade long off-take agreement, then receive your hydrogen at predefined intervals and quantities. And pay if you do not take it. This needs to change to be suitable for a dynamic industry like shipping. Therefore Plug Power’s new initiative is worth the attention, even though not applicable to shipping (yet).

    The hydrogen sector just took a significant step forward with Plug Power’s announcement of the industry’s first spot pricing for green hydrogen. This move aims to bring a new level of transparency and flexibility to the market, addressing the demand for more dynamic and accessible hydrogen pricing.

    What Is Spot Pricing?

    Spot pricing allows buyers to purchase green hydrogen at current market rates instead of relying solely on long-term contracts. This model mirrors traditional commodity markets, such as natural gas and electricity, where prices fluctuate based on supply and demand. For industries transitioning to hydrogen, this innovation provides an opportunity to optimize costs and procurement strategies.

    Why This Matters

    For years, green hydrogen has faced challenges related to high production costs and market uncertainty. By introducing spot pricing, Plug Power is making hydrogen procurement more accessible and predictable. This shift is expected to encourage wider adoption, particularly for industries that require flexible purchasing options, such as transport, logistics, and manufacturing.

    From a broader perspective, spot pricing could also help stabilize hydrogen markets by allowing more buyers to enter without the long-term financial commitment typically associated with fixed-price contracts. This could accelerate the hydrogen economy’s growth, ensuring a more competitive landscape for renewable energy.

    Potential Impacts on the Hydrogen Market

    1. Increased Market Liquidity – By offering spot prices, Plug Power could attract new buyers who were previously hesitant to commit to long-term contracts.
    2. Price Discovery and Transparency – A more open pricing model enables businesses to better assess the true cost of hydrogen, potentially driving down prices as competition increases.
    3. Encouragement for Production Growth – If demand increases due to more flexible pricing, hydrogen producers may be incentivized to expand their capacity, leading to greater availability and lower costs over time.
    4. Facilitating the Energy Transition – Many industries looking to decarbonize will benefit from easier access to green hydrogen, making it a more viable alternative to fossil fuels.

    Challenges and Considerations

    Despite the potential benefits, the transition to a spot pricing model does come with risks. Hydrogen production and delivery still depend on infrastructure that is in its early stages of development. Market fluctuations may also introduce volatility, which some buyers might see as a disadvantage compared to fixed contracts.

    Additionally, for spot pricing to succeed, there must be sufficient supply and a competitive market environment. If hydrogen production remains constrained, spot pricing could lead to price spikes rather than stability.

    Final Thoughts

    Plug Power’s introduction of spot pricing for green hydrogen is a bold step toward creating a more flexible and transparent hydrogen economy. While challenges remain, this model has the potential to unlock new opportunities for buyers and producers alike. If successful, it could pave the way for broader hydrogen adoption and a more competitive clean energy landscape. And it is definitely something we wish we can have in shipping too.

  • GreenH Advances Hydrogen Hub for Ships

    Those involved with hydrogen project for shipping know the chicken-and-egg situation: why build hydrogen ships when there is not supply vs in order to build the infrastructure we need guaranteed long term off-take. That is why GreenH’s final investment decision (FID) is such a big deal: finally dedicated hydrogen supply hub for ships will be constructed. While simultaneously solving the problem of bunkering high volumes of compressed hydrogen into a ship. Therefore we can only respect this major green shipping milestone.

    Norwegian company GreenH has secured NOK 1 billion (approximately $89 million) to develop a green hydrogen facility in Bodø. This plant will supply hydrogen the two Torghatten Nord’s ferries on the Vestfjorden route. The FID, announced on January 27, 2025, marks a significant milestone after four years of development.

    Source: GreenH

    Enova grant

    In November 2024, Enova granted NOK 129 million (around $11.5 million) to support the Bodø hydrogen facility. This funding was pivotal in reaching the final investment decision.

    Norwegian hydrogen hub

    The Bodø facility will feature a 20 MW electrolyzer, capable of producing up to 3,100 tons of green hydrogen annually. Operations are slated to begin in 2026, making it the first in Northern Europe to supply pressurized green hydrogen directly to maritime vessels. This initiative aligns with broader efforts to decarbonize maritime transport. For instance, Norwegian shipyard Myklebust Verft is constructing two hydrogen-powered ferries for Torghatten Nord. Upon delivery, these vessels will be the world’s largest hydrogen-powered ships, operating primarily on the green hydrogen produced in Bodø.

    Port infrastructure

    Globally, ports are investing in hydrogen infrastructure to support sustainable shipping. The Port of Seattle is exploring green hydrogen to power port operations and fuel vessels. Similarly, the Hamburg Green Hydrogen Hub plans to start building its electrolysis plant in 2025, aiming to decarbonize the port and surrounding industries. These developments underscore the maritime industry’s commitment to reducing emissions through innovative hydrogen solutions.

  • Unlocking Hidden Energy: Gold Hydrogen Beneath Our Feet

    The cost of green hydrogen has not gone down yet they way it should have according to predictions. This is disappointing and a risk to the maritime industry using hydrogen as fuel. However here is positive news for the longer term: golden hydrogen.

    Gold hydrogen

    Hydrogen is not just an energy source for the future; it’s already beneath our feet. The unseen and untapped potential of naturally occurring hydrogen, known as “gold” hydrogen, has come to light. Engineers and geologists have now mapped this hydrogen across the United States.

    A groundbreaking map reveals hydrogen reserves under at least 30 U.S. states. This map is the first of its kind, showcasing regions rich in this valuable resource. Such findings could transform energy production, making it more sustainable and economically viable.

    Source: USGS https://certmapper.cr.usgs.gov/data/apps/hydrogen/

    The map results from new research aimed at understanding subsurface hydrogen presence. Scientists believe that geological processes produce this hydrogen naturally. It leaks to the surface from deep within the Earth over thousands of years.

    Cost effectiveness

    Using this gold hydrogen could redefine renewable energy. Unlike traditional hydrogen production, which is energy-intensive, gold hydrogen is naturally available. It offers a cleaner alternative, potentially reducing reliance on fossil fuels.

    The key advantage is its cost-effectiveness. Tapping into these reserves could be cheaper than producing hydrogen artificially. This natural hydrogen has a lower environmental footprint, contributing to a greener planet.

    Challenges ahead

    Navigating challenges is essential to harness this resource. There needs to be a focus on technology development for efficient extraction. Furthermore, sustainable practices must guard against potential environmental impacts.

    The discovery opens doors for renewed interest in hydrogen as a crucial player in energy strategy. By investing in research and development, the U.S. can lead global efforts in clean energy innovation.

    In summary, gold hydrogen holds promise for the future of sustainable energy. With these new findings, a path to cleaner production and economic opportunity lies ahead. As the demand for alternative energy grows, the significance of such discoveries becomes ever more critical.

  • Hydrogen Pricing in the EU: Challenges and Opportunities

    This post is based on the recent Bloomberg article which highlight hydrogen challenges. The challenges mentioned align with my own experience: delayed project and high pricing present another challenge for ship owners who decided to take the leap and use green hydrogen as fuel. However, with a new round of EU Hydrogen Bank auction, Fuel EU Maritime kicking in, and more hydrogen vessel deliveries 2025 may bring positive changes.

    As the European Union (EU) races towards its ambitious net-zero emissions target, hydrogen is emerging as a cornerstone of its energy transition strategy. However, a closer look at hydrogen pricing reveals both the promise and the challenges of integrating this versatile fuel into Europe’s decarbonization framework.

    Current Hydrogen Pricing Landscape in the EU

    • Green Hydrogen Costs: Today, the production costs of green hydrogen in the EU range from €3.50 to €10 per kilogram, driven by the high expenses associated with renewable energy and electrolyzer technology. Despite these challenges, BloombergNEF (BNEF) predicts that by 2050, advancements in technology and economies of scale will reduce costs to €1.50 to €5 per kilogram.
    • Gray Hydrogen Costs: The EU currently relies heavily on gray hydrogen, which is produced from natural gas without capturing carbon emissions. Gray hydrogen remains cheaper at €1 to €2 per kilogram, but its environmental impact is increasingly penalized by rising carbon taxes under the EU Emissions Trading System (ETS).

    The Role of Policy and Subsidies

    To bridge the cost gap between gray and green hydrogen, the EU has introduced a range of policy measures:

    • European Hydrogen Bank: A funding initiative aimed at scaling hydrogen production and infrastructure.
    • National Hydrogen Strategies: Many member states have outlined clear roadmaps for hydrogen development, focusing on industrial use and transport applications.

    Despite these efforts, regulatory hurdles and delays in funding allocation are slowing the momentum. Streamlining approval processes for renewable energy projects and electrolyzer installations is essential to accelerate progress.

    Overcoming Market Challenges

    The EU hydrogen market faces several key obstacles:

    1. Project Delays: High upfront costs and regulatory complexity have caused delays and cancellations of hydrogen projects across the region.
    2. Demand Uncertainty: While sectors like steelmaking, chemicals, and heavy transport view hydrogen as critical for decarbonization, the lack of stable pricing and economic incentives has dampened immediate demand.
    3. Infrastructure Gaps: Investments in pipelines, storage, and fueling stations remain insufficient to support widespread hydrogen adoption.

    A Path Forward for Green Hydrogen

    Despite these challenges, the long-term prospects for green hydrogen in the EU remain strong. The declining costs of renewable energy, combined with technological innovations in electrolyzers, position the EU to become a global leader in hydrogen production.

    To achieve this, the EU must:

    • Expand its carbon pricing mechanisms to further discourage gray hydrogen use.
    • Provide greater clarity and consistency in funding for hydrogen projects.
    • Strengthen international partnerships to secure raw materials and share technological expertise.

    Conclusion

    The EU’s commitment to hydrogen reflects its broader ambition to lead the world in clean energy innovation. While the road to widespread hydrogen adoption is fraught with challenges, targeted investments and policy support can turn green hydrogen from a costly innovation into a competitive, indispensable fuel for the future.

    By addressing these barriers head-on, the EU has the potential to set a global benchmark for integrating hydrogen into a sustainable energy economy.