MORE than 66 per cent of European green shipping fuel projects are at risk, according to a new Transport & Environment (T&E) from the Brussels-based eco-lobby, reports New York's Marine Link.
T&E's mapping of green hydrogen projects across Europe shows that nearly four per cent of European shipping could run on green e-fuels by 2030.
But fuel suppliers appear to be reluctant to commit financially to projects without more guarantees that there will be demand for these fuels in the near future. This means the vast majority of projects may never come online in this decade, putting Europe's climate ambitions and thousands of jobs at risk, warns T&E.
There are at least 17 projects across Europe, set up to provide hydrogen-based e-fuels for ships. If all of these projects become operational, they could meet nearly four per cent of EU shipping's total energy demand by 2030. T&E found 44 other hydrogen projects in Europe that could also provide green fuels for ships, but project developers eye other hydrogen-hungry industries, too.
The mapped projects would easily meet the European Union's target of two per cent green e-fuels in 2034. However, most projects are yet to receive funding and not a single shipping-dedicated project is operational.
Fuel producers cite a lack of buyer certainty and investment security as major obstacles. This puts millions of tonnes of green fuels and thousands of skilled jobs at risk. Globally, it is estimated that green shipping could create four million new jobs by 2050.
Denmark alone accounts for more than half of all the planned hydrogen volumes across the 61 projects mapped by T&E. But in terms of fuels earmarked for shipping, Spain leads the way and is home to a third of the potential fuel supplies. Despite its large coastline, the UK has very few projects while T&E found none in Italy and Greece.
In the long run, e-ammonia appears to be the more popular option, making up 77 per cent of potential volumes. To date, however, none of these projects has received a final investment decision.
Inesa Ulichina, shipping officer at T&E, said: 'Hydrogen projects are popping up across Europe. They have the potential to power hard-to-decarbonise sectors like shipping and provide thousands of good jobs. But at the moment there just isn't enough certainty, and we risk missing this golden opportunity.'
T&E recommends that member states mandate at least 1.2 per cent of shipping fuels to be e-fuels by 2030, as recommended by the EU's green fuels law (RED III).
This would secure all the current projects that have already received funding and allow more projects to reach a final investment decision. Revenues from the EU's carbon market for shipping (ETS) should also be used to help nascent projects, says T&E.
SeaNews Turkey
T&E's mapping of green hydrogen projects across Europe shows that nearly four per cent of European shipping could run on green e-fuels by 2030.
But fuel suppliers appear to be reluctant to commit financially to projects without more guarantees that there will be demand for these fuels in the near future. This means the vast majority of projects may never come online in this decade, putting Europe's climate ambitions and thousands of jobs at risk, warns T&E.
There are at least 17 projects across Europe, set up to provide hydrogen-based e-fuels for ships. If all of these projects become operational, they could meet nearly four per cent of EU shipping's total energy demand by 2030. T&E found 44 other hydrogen projects in Europe that could also provide green fuels for ships, but project developers eye other hydrogen-hungry industries, too.
The mapped projects would easily meet the European Union's target of two per cent green e-fuels in 2034. However, most projects are yet to receive funding and not a single shipping-dedicated project is operational.
Fuel producers cite a lack of buyer certainty and investment security as major obstacles. This puts millions of tonnes of green fuels and thousands of skilled jobs at risk. Globally, it is estimated that green shipping could create four million new jobs by 2050.
Denmark alone accounts for more than half of all the planned hydrogen volumes across the 61 projects mapped by T&E. But in terms of fuels earmarked for shipping, Spain leads the way and is home to a third of the potential fuel supplies. Despite its large coastline, the UK has very few projects while T&E found none in Italy and Greece.
In the long run, e-ammonia appears to be the more popular option, making up 77 per cent of potential volumes. To date, however, none of these projects has received a final investment decision.
Inesa Ulichina, shipping officer at T&E, said: 'Hydrogen projects are popping up across Europe. They have the potential to power hard-to-decarbonise sectors like shipping and provide thousands of good jobs. But at the moment there just isn't enough certainty, and we risk missing this golden opportunity.'
T&E recommends that member states mandate at least 1.2 per cent of shipping fuels to be e-fuels by 2030, as recommended by the EU's green fuels law (RED III).
This would secure all the current projects that have already received funding and allow more projects to reach a final investment decision. Revenues from the EU's carbon market for shipping (ETS) should also be used to help nascent projects, says T&E.
SeaNews Turkey