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Tag: subsidy

  • Five new hydrogen vessels receive Dutch subsidy

    On Thursday 06 February five new hydrogen vessels were granted a subsidy by the Dutch government under Maritime Masterplan program. Two methanol and two carbon capture projects received subsidy too. This first call included a total budget of €85 million of which €40 was allocated to hydrogen vessels. For those who missed out, a next call is planned for next year. Among this years winners are the following projects.

    H2ESTIA: A Zero-Emission Coaster

    H2ESTIA is a 5,000 DWT hydrogen-powered coaster, developed by a consortium led by NIM. It features a 1.5 MW LT-PEM fuel cell, a 1 MW battery, and electric propulsion. The ship carries 200m³ of liquid hydrogen (11 tons) and boasts a 1,700 NM range, assisted by e-sails and a waste heat recovery system. This project is a major step toward sustainable coastal shipping.

    Source: Maritiem Masterplan

    Hydrogen-Powered River Cruiser

    A hydrogen-powered river cruise vessel is under development for operations on the Rhine and Danube. It measures 110m x 11m and reaches speeds of up to 22 km/h. This project introduces hydrogen as a clean energy source for the river cruise industry, reducing emissions on inland waterways.

    Hybrid H2 ICE-FC Dredging Vessel

    The Gaasterland, a deep-suction dredger motor barge, is being upgraded with a hybrid hydrogen internal combustion engine (ICE) and fuel cell system. This retrofit aims to reduce emissions while maintaining operational efficiency. The project involves Mineralis B.V., NPS Driven B.V., TNO, and other industry leaders.

    Columbus Zero One: Hydrogen-Powered Inland Transport

    Columbus Zero One is a small, zero-emission hydrogen-powered barge designed for transporting construction materials between the IJsselmeer and Randstad. The ship operates on compressed hydrogen (350 bar), setting a benchmark for sustainable inland shipping.

    Hydro Navis: Liquid Hydrogen Transport

    Hydro Navis is a new zero-emission vessel designed for steel plate transport in wind farm construction. It features a cryogenic liquid hydrogen tank, ensuring efficient and clean operations. The project is supported by NPRC, Hydro-Nova, Marin, NIM, and Concordia Damen Shipyard.

    Source: Maritiem Masterplan

    MOBY NL: Methanol-Powered Bunkering Ship

    MOBY NL is a newly built bunkering vessel operating in the Amsterdam-Rotterdam-Antwerp (ARA) region. The 135m x 11.45m methanol tanker exceeds 6,000 GT and features a dual-fuel methanol propulsion system. The project is backed by Victrol, Shipping Technology, NIM, and other key partners.

    Methanorms: Geophysical Survey Vessel

    Methanorms is a DP-1 geophysical survey vessel designed for efficient execution and real-time monitoring. Its success lies in prior research, scalability, and regulatory compliance. It serves as a model for future survey vessels operating with lower environmental impact.

    BLUE HORIZON: Carbon Capture for LNG Tankers

    Coral Energy, an LNG tanker (115m x 22m, 13,501 GT), is being equipped with a carbon capture system to reduce CO₂ emissions. This project demonstrates how carbon capture can enhance the sustainability of LNG-powered vessels.

    ME2CC: Compact Carbon Capture for LNG Ships

    The Maritime Efficient & Easy Carbon Capture (ME2CC) project is focused on developing compact carbon capture systems for LNG-powered vessels. The first implementation will be on MV Kvitbjorn, a Samskip-operated ship. This technology could bridge the gap toward zero-emission shipping.

    A Step Toward a Cleaner Future

    These projects highlight the rapid advancements in hydrogen and alternative fuel shipping. It is good to see these projects receive capex support. This is the way to develop green hydrogen shipping. After Norway leading the way it is good to see the Dutch following and we can only hope for more.

  • Revolutionizing Clean Shipping with BeHydro’s Hydrogen Engines

    BeHydro’s approach is fascinating. Their hydrogen engines combine the familiarity of combustion technology with the cleanest fuel, making them an appealing solution for shipbuilders and operators. By integrating hydrogen into a well-known engine format, they address a critical challenge: adopting new technology without overhauling existing expertise.

    BeHydro’s hydrogen engines are driving a new era in sustainable maritime transport. The Dutch government has chosen these engines for a subsidy program aimed at slashing shipping emissions. This decision highlights the Netherlands’ leadership in green shipping technology.

    BeHydro, a collaboration between ABC Engines and CMB.TECH, produces dual-fuel and hydrogen-only engines. Their products deliver power ranging from 600 kW to 2.7 MW, making them suitable for many vessel types. These engines significantly cut greenhouse gas emissions, helping the maritime industry reduce its carbon footprint.

    Source: BeHydro

    The subsidy program promotes innovative technologies for cleaner shipping. With BeHydro’s engines, vessels can operate more sustainably and reduce their environmental impact.

    Hydrogen’s role in shipping continues to grow. Its ability to enable zero-emission operations positions it as a key solution for meeting global climate targets. BeHydro’s engines offer a practical way for ships to adopt this green fuel.

    This program also supports BeHydro’s expansion and cements the Netherlands’ role in maritime innovation. By focusing on cleaner technologies, the shipping industry can accelerate its transition to greener operations.

    The partnership between BeHydro and the Dutch government exemplifies how innovation and support can create lasting environmental change. Hydrogen engines are steering the shipping sector towards a cleaner future.

  • EU grants hydrogen vessels

    Very pleased to see the EU Innovation fund specifically supporting three projects developing vessels operating on hydrogen. Ponant enables environmental friendly cruising with a very interesting mix of technologies. Samskip continues their venture into hydrogen vessels after already ordering the Sea Shuttles. While the original Energy Observer get is much larger container-carrying sister.

    In November 2023, the European Commission announced the recipients of the EU Innovation Fund 2023, dedicating substantial grants to pioneering projects aimed at decarbonizing the maritime industry. Among the notable beneficiaries are:

    Ponant’s SWAP2ZERO Project

    • Grant Amount: Not publicly disclosed.
    • Project Overview: Ponant, a French luxury cruise operator, is developing the world’s first transoceanic vessel targeting carbon neutrality.
    • Key Features:
      • Wind Propulsion: A sail power system providing up to 50% of the vessel’s propulsion energy.
      • Solar Energy: Approximately 1,000 square meters of eco-friendly photovoltaic panels.
      • Fuel Cells: Integration of both low-temperature and high-temperature fuel cells for propulsion and hotel load needs.
      • Carbon Capture: Onboard technology to capture and reuse CO₂ emissions.
    • Operational Target: Aiming for zero CO₂ emissions during operation with one month of autonomy.
    • Planned Launch: The vessel is expected to be operational by 2030.

    Samskip’s HydroShuttles

    • Grant Amount: Funding details not publicly disclosed.
    • Project Overview: Samskip, a leading logistics company, is developing hydrogen-powered short-sea vessels designed for efficient, clean coastal transport.
    • Key Features:
      • Hydrogen Fuel Cells: Utilization of advanced fuel cell technology for propulsion.
      • Scalable Hydrogen Storage: Innovative storage solutions to support extended operations.
    • Impact: Aiming to reduce emissions in regional trade routes, showcasing the viability of hydrogen for short-sea shipping applications.

    Energy Observer 2 (EO2)

    • Grant Amount: €40 million from the EU Innovation Fund.
    • Project Overview: Building upon the success of the original Energy Observer, EO2 is a 160-meter liquid hydrogen-powered container ship.
    • Key Features:
      • Fuel Cell Capacity: Equipped with 4.8 MW of fuel cells developed by EODev in partnership with Toyota.
      • Cargo Capacity: Capable of carrying up to 1,100 TEU containers.
      • Range: Designed for a 1,600 nautical mile route over 14 days.
    • Operational Target: Scheduled for commercial operation by 2029 on Europe’s Atlantic and Channel coasts.
    • Environmental Impact: Projected to reduce CO₂ emissions by 112,250 tonnes over ten years, equivalent to the annual absorption of 190,000 mature trees.

  • 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.

  • December 2024 Norway subsidy results

    Hydrogen Projects score poorly in Norway’s latest Zero-Emission Vessel Funding

    Norway’s recent allocation of approximately $108 million to 14 zero-emission vessel projects underscores its commitment to sustainable maritime solutions. However, it’s notable that only two hydrogen-powered vessels received funding, despite numerous applications in this category.

    Among the projects awarded, Cruise Service AS secured the subsidy for two hydrogen-powered passenger vessels. Details are not known.

    The limited support for hydrogen initiatives is concerning, given hydrogen’s potential to revolutionize maritime transport, particularly in shortsea shipping. By not capitalizing on the opportunity to fund a broader range of hydrogen projects, Norway may be missing a chance to lead in this transformative technology.

    It’s encouraging to note that Enova plans to hold additional funding rounds, with the next call for hydrogen and ammonia programs anticipated at the end of the first quarter of 2025. This presents an opportunity to reassess and potentially increase support for hydrogen-based maritime solutions in future allocations.

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