Green Hydrogen-Based E-Fuels to Power Hapag-Lloyd and NCL’s Container Ships from 2027

In December, the Zero Emission Maritime Buyers Alliance (ZEMBA) announced that Hapag-Lloyd and North Sea Container Line (NCL) secured a multi-year deal to use green hydrogen-powered e-fuels starting in January 2027. Hapag-Lloyd will use 70,000 metric tons of e-methanol on five vessels, while NCL will use 25,000 tons of e-ammonia on a single ship within Europe, cutting nearly 95,000 metric tons of CO2 equivalent.

E-methanol is produced by combining green hydrogen with captured CO2, while e-ammonia is created through the Haber-Bosch process using green hydrogen and nitrogen from the air. Both fuels can power retrofitted engine systems. ZEMBA, which includes major buyers like Amazon, IKEA, and Nike, drives demand for green hydrogen, pushing investment in electrolysers and synthesis plants.

Hapag-Lloyd aims for net-zero emissions by 2045 and has already ordered dual-fuel methanol ships. NCL is pioneering ammonia bunkering within Europe. The tender stimulates investments in hydrogen storage, bunkering infrastructure, and port electrification but faces challenges like higher fuel costs (2–3 times marine diesel) and limited vessel compatibility. Scaling up requires policy support, including carbon pricing and streamlined safety approvals.

ZEMBA's first e-fuel deal covered 15,000 tons; this second tender is five times larger. With shipping contributing 3% of global CO2 emissions, these initiatives are crucial for meeting climate goals. Success depends on reducing electrolyser costs, advancing green grids, and expanding bunkering hubs. Carriers must retrofit or order new fuel-flexible ships, and cargo owners must decide whether to pay premiums or shift to alternative modes.

This deal marks a significant step towards a green hydrogen economy in maritime transport, demonstrating that voluntary demand can drive change.