COP28 | Green hydrogen producers pledge 11 million tonnes of H2 supply for marine fuel by 2030

A collective effort, articulated in a joint call for action at COP28, is committed to incorporating a minimum of 5% hydrogen-derived shipping fuels, such as ammonia and methanol, into maritime usage by the commencement of the next decade. This concerted initiative, involving 21 entities ranging from ship owners and operators to ports and hydrogen project developers, supported by nine international associations, seeks to leverage green hydrogen derivatives to produce about five million tonnes of feedstock. The ambitious goal is aligned with a trajectory aimed at curbing global warming to below 1.5°C.

The signatories include notable green hydrogen producers like CWP, InterContinental Energy, ReNew, and Orsted, collectively pledging substantial contributions to meet the five million-tonne demand and aspiring to establish an 11-million-tonne production capacity for shipping applications by the early 2030s. This commitment mirrors a parallel pledge from influential stakeholders such as Maersk, Mitsui OSK Lines, and Norstar, encompassing ship owners, operators, and financiers, who are investing in vessels capable of utilizing ammonia or methanol. Their shared objective is to achieve a minimum 5%, with an aspiration for 10%, utilization of zero-emission fuels by 2030, followed by swift and extensive scaling.

Furthermore, cargo owners endorsing the joint declaration aim to exclusively engage ocean freight services powered by zero-emission fuels by 2040. The commitment extends to port signatories, who express their intention to back investments in green hydrogen infrastructure and safety initiatives, fostering refueling capabilities for ships and participating in green corridor projects to stimulate additional investment.

The signatory companies are also urging the International Maritime Organization and its member states to adopt a robust mid-term measure package in 2025, scheduled for implementation in 2027. This proposed package encompasses a GHG Intensity fuel standard on a well-to-wake basis. Additionally, the joint call recommends implementing a pricing mechanism, such as a levy on conventional fuels, to incentivize greater adoption of low-carbon alternatives.

Seeking governmental backing, the signatories advocate for subsidies to provide long-term price certainty for producers, mitigating risks for offtakers, and offering incentives for the expansion of infrastructure and workforce capacities in the development of green shipping corridors. Furthermore, they call for international alignment on frameworks for calculating well-to-wake greenhouse gas emissions for fuels. In the European context, the recently enacted FuelEU package for maritime emissions reduction incorporates provisions acknowledging emissions savings from renewable fuels of non-biological origin (RFNBOs), including those derived from green hydrogen. The package includes a sub-target mandating the use of 2% of these fuels as a share of annual onboard energy consumption by the beginning of 2034 if the RFNBO share is less than 1% in 2031.