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Category: Funding & Policy

  • Norway supports liquid hydrogen fleet

    Norway’s state-owned Enova has awarded substantial funding for six hydrogen-powered bulk carriers, marking a significant acceleration in the deployment of zero-emission maritime technology. The latest round brings the total number of liquid hydrogen bulk carriers to four, demonstrating growing confidence in hydrogen as a viable marine fuel.

    Expanding the Liquid Hydrogen Fleet

    LH2 Shipping, in partnership with Strand Shipping Bergen (part of the Vertom Group), received approximately $29 million in additional funding from Enova to construct two more liquid hydrogen-powered bulk carriers. This award follows an earlier grant of $23.5 million secured in the spring for the first two vessels, bringing the total number of hydrogen-powered ships in the project to four.

    Source: LH2 Shipping

    The expanded funding represents more than NOK 536 million ($52.5 million) in total state support for this single project—a clear signal of Norway’s commitment to maritime decarbonization.

    Technical Specifications

    The four vessels, branded under the “NordBulk” project, will be 7,700 dwt bulk carriers designed for short sea shipping. Each 108-meter (353-foot) vessel will transport bulk and general cargo between northern Norway, the Baltic region, and mainland Europe.

    Key technical features:

    • LH₂ Storage: 17 tonnes liquid hydrogen capacity per vessel
    • Power Generation: 3.5 MW PEM fuel cells
    • Battery Support: 1.5 MWh battery pack to support fuel cell operation
    • Shore Power: Equipped for shore power connection during loading/unloading
    • Backup System: Standby diesel/biodiesel generator for operational redundancy

    The onboard hydrogen systems consist of C-type vacuum-insulated tanks storing liquid hydrogen at -253°C. This proven technology builds directly on the experience gained from Norled’s MF Hydra ferry, which has been operating successfully on liquid hydrogen since 2023.

    Coastal Hydrogen Operations

    In addition to the liquid hydrogen bulk carriers, GMI Rederi received funding to construct two coastal bulk carriers powered by compressed hydrogen. These vessels will combine multiple zero-emission technologies:

    • Fuel cells running on compressed hydrogen
    • Battery energy storage systems
    • Wind-assisted propulsion technology

    The ships will operate along the Norwegian coast, transporting asphalt and construction materials—applications where the shorter range and established coastal infrastructure make compressed hydrogen a practical choice.

    Building the Supply Chain

    A critical component of these projects is the parallel development of hydrogen production and bunkering infrastructure. In November 2024, Enova awarded over NOK 777 million ($70.9 million) to five hydrogen production projects along the Norwegian coast, from Slagentangen in the southeast to Bodø in the north.

    These production facilities will provide:

    • Total capacity: 120 MW
    • Daily production: Approximately 40 tons of hydrogen
    • Coverage: Strategic locations along major shipping routes

    Nils Kristian Nakstad, CEO of Enova, stated: “The projects that receive support will be part of a network of hydrogen producers along the Norwegian coastline. This will make hydrogen more accessible to those who want to invest in sustainable shipping.”

    The Economics of Hydrogen Shipping

    The business case for hydrogen vessels is improving rapidly due to several factors:

    Regulatory Drivers:

    • EU Emissions Trading System (ETS) now includes maritime transport
    • FuelEU Maritime regulations mandate gradual emissions reductions
    • IMO’s 2050 net-zero target creates long-term regulatory certainty

    Cost Competitiveness:
    With carbon pricing mechanisms in place, the cost gap between fossil fuels and hydrogen is narrowing. After 2030, when CO₂ emission fees increase further under EU regulations, zero-emission vessels are expected to achieve operational cost parity with conventional ships on many routes.

    The Enova grants cover up to 80% of the additional costs associated with hydrogen technology—a significant increase from the previous 40% support level. This enhanced support reflects Norway’s strategic goal to establish first-mover advantage in zero-emission shipping technologies.

    Environmental Impact

    The six hydrogen-powered bulk carriers receiving funding in this round will collectively contribute to:

    • Annual CO₂ reduction: Significant emissions cuts in short-sea shipping
    • Zero local emissions: No NOx, SOx, or particulate matter during fuel cell operation
    • Scalable model: Demonstration of commercially viable hydrogen operations

    Enova emphasizes that supporting these pioneer vessels creates the foundation for broader adoption. As Andreas Bjelland Eriksen, Norway’s Minister for Climate and Environment, stated: “Norway must be at the forefront of the transition at sea.”

    Timeline and Next Steps

    The vessels are expected to enter service between 2026 and 2029, with construction beginning in 2025. Shipyard selection is underway, with Norwegian and European yards competing for the contracts.

    Enova has announced it will continue its support programs, with additional funding rounds planned for 2025 and 2026. The organization reports receiving 31 applications in the latest round, indicating strong industry interest in hydrogen and ammonia propulsion.

    Industry Significance

    This latest funding announcement positions Norway as the clear leader in hydrogen shipping deployment. The country’s comprehensive approach—supporting vessels, production facilities, and infrastructure simultaneously—creates the conditions for a functioning hydrogen maritime ecosystem.

    For the global shipping industry, Norway’s hydrogen program provides crucial real-world data on:

    • Operational costs of hydrogen vs. conventional fuel
    • Reliability of liquid vs. compressed hydrogen systems
    • Integration challenges in existing shipping operations
    • Bunkering procedures and infrastructure requirements

    As the maritime industry faces increasing pressure to decarbonize, Norway’s hydrogen pioneers are demonstrating that zero-emission bulk shipping is not just technically feasible—it’s becoming economically viable.

    Looking Ahead

    With four liquid hydrogen bulk carriers and two compressed hydrogen coastal vessels now funded and under development, Norway is creating a critical mass of hydrogen shipping operations. When these vessels enter service, they will provide the operational experience needed to scale hydrogen technology across larger ships and longer routes.

    The success of these projects will be closely watched by shipowners worldwide, particularly in Europe where emissions regulations are tightening rapidly. If the NordBulk vessels demonstrate reliable, cost-competitive operations, they may catalyze a broader shift toward hydrogen in the short-sea shipping segment.

    This article is based on reports from Maritime Executive, Ship & Bunker, Clean Shipping International, Norwegian Hydrogen, Hellenic Shipping News, and official Enova communications.

  • H2ESTIA Project: Liquid Hydrogen-Powered General Cargo Ship

    In February this site already reported on five Dutch hydrogen ships winning subsidy. Now the general public is introduced to one of those vessels: the H2ESTIA Project. Spearheaded by the Nederlandse Innovatie Maatschappij (NIM), this project aims to develop the world’s first zero-emission general cargo ship powered by liquid hydrogen, marking a significant milestone in the quest for greener shipping solutions.

    Project Overview

    The H2ESTIA Project focuses on the design, construction, and demonstration of a hydrogen-powered cargo vessel intended for operations in the North Sea and beyond. Managed by Van Dam Shipping, a family-run short-sea and inland shipping company, the vessel is designed to transport bulk goods without emitting harmful pollutants, thereby redefining sustainable maritime logistics.

    Source: NIM

    Innovative Technological Integration

    Central to the project’s innovation is its integrated approach to hydrogen propulsion. The vessel will feature a newly designed cryogenic hydrogen storage and bunkering system, ensuring the safe handling and storage of liquid hydrogen at extremely low temperatures. Propulsion will be achieved through a hydrogen fuel cell system complemented by batteries, delivering clean and efficient power.

    To enhance energy efficiency further, the ship will incorporate:

    • Wind-Assisted Propulsion: Utilizing wind power to reduce reliance on hydrogen fuel.
    • Waste Heat Recovery Systems: Capturing and reusing excess heat to improve overall energy utilization.

    Additionally, the implementation of digital twin technology will create a virtual model of the ship, allowing for real-time monitoring, operational optimization, and enhanced safety measures.

    Collaborative Effort

    The H2ESTIA Project is supported by a consortium of leading maritime and technology organizations, including TNO, MARIN, the University of Twente, Cryovat, EnginX, Encontech, and classification society RINA. This collaborative effort is further backed by the Dutch Ministry of Infrastructure and Water Management, highlighting the project’s national significance in advancing sustainable shipping practices.

    Statements from Key Stakeholders

    Sander Roosjen, CTO at NIM, emphasized the project’s groundbreaking nature: “H2ESTIA is a flagship project for commercial shipping. By integrating hydrogen technology with digital innovation, we are proving that zero-emission shipping is not just a vision—it is an achievable reality.”

    Jan van Dam, CEO of Van Dam Shipping, highlighted the importance of collaborative efforts: “Parallel to the H2ESTIA Project, we are working on securing the supply, as well as the necessary bunkering and logistics. This is a combined effort, as a single ship alone does not generate sufficient demand. Collaboration at this stage is what transforms our ambitions into reality.”

    Implications for the Maritime Industry

    The H2ESTIA Project aims to demonstrate both the technological readiness and economic viability of hydrogen-powered cargo vessels, paving the way for their commercial deployment. By addressing challenges such as hydrogen system certification, risk management, and crew training, the project sets a precedent for the safe integration of hydrogen technology into maritime operations.

    As the maritime industry continues to seek sustainable alternatives to traditional fossil fuels, initiatives like H2ESTIA exemplify the potential of hydrogen as a clean energy source, offering a promising pathway toward achieving zero-emission shipping in the near future.

  • European Project Advances Liquid Hydrogen-Powered SOV Design

    With long term charter contracts, single port operations and fixed time at sea Service Operation Vessels (SOV) are ideally suited for powering by liquid hydrogen. There is little available space so installing liquid tanks below will be a challenge but this is what the new European project consortium led by ArianeGroup, intends to tackle. Last year a similar concept was revealed by Louis Dreyfus Armateurs and Salt Ship Design.

    The Project Scope

    The recently announced NAVHYS project brings together key industry players, research institutions, and shipbuilders to explore the technical and economic feasibility of an liquid hydrogen-fueled SOV design. The primary objective is to provide a concept for a below-deck LH2 storage and fuel system for an SOV to propose a fully decarbonised maintenance solution for wind energy providers.

    Source: North Star

    The consortium will address several critical aspects:

    • Fuel Storage & Safety – Developing safe and efficient LH2 storage solutions on board.
    • Power System Integration – Assessing how fuel cells and hydrogen combustion engines can be optimized for vessel propulsion.
    • Regulatory Compliance – Ensuring that the design adheres to evolving maritime safety and environmental regulations.
    • Operational Feasibility – Evaluating how LH2 can meet the energy demands of an SOV during offshore wind farm operations.

    Why Liquid Hydrogen?

    Hydrogen has long been considered a promising alternative to fossil fuels, but its adoption in shipping faces challenges related to storage, energy density, and infrastructure. LH2 offers significant advantages over compressed hydrogen due to its higher energy density per unit volume, making it more suitable for long-duration offshore operations. Additionally, it eliminates the need for complex high-pressure storage systems, a key concern for vessel integration.

    However, LH2 presents unique challenges, including:

    • The need for cryogenic storage at -253°C.
    • Potential boil-off losses during long voyages.
    • Limited bunkering infrastructure compared to conventional fuels.

    Despite these hurdles, the industry sees LH2 as a crucial component in the future of zero-emission offshore operations.

    Implications for the Offshore Wind Sector

    SOVs are the backbone of offshore wind farm operations, transporting technicians and equipment to wind turbines. As the demand for offshore wind energy grows, reducing the carbon footprint of support vessels becomes increasingly important. Hydrogen-fueled SOVs could significantly cut emissions, reduce reliance on fossil fuels, and demonstrate the viability of LH2 as a marine fuel in real-world applications.

    Furthermore, this initiative sets a precedent for future hydrogen-powered vessel designs, potentially influencing developments in other segments of the maritime industry, such as platform supply vessels (PSVs) and crew transfer vessels (CTVs).

    Stay tuned for further updates as the project progresses toward making hydrogen-powered SOVs a reality.

  • 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.

  • 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.

  • 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.

  • 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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