Coalition calls for EU to set minimum e-fuels shipping target

A coalition of shipping companies, energy suppliers and NGOs has called on the European Parliament and European Council to introduce a 6% minimum e-fuel mandate for ships by 2030.

PHOTO: Companies and organisations are calling on the EU implement a minimum hydrogen quota for shipping. Getty Images

The coalition includes German energy company Siemens Energy, Swiss cruise ship operator Viking Cruises, Danish renewable energy organisation Green Power Denmark, Brussels-based industry body Hydrogen Europe and NGO Transport & Environment (T&E).

It proposes that 6% of energy demand from ships should be met through consuming e-fuels by 2030.

It has also recommended to establish a multiplier for use of e-fuels above the 6% minimum target, allowing every mt of such fuel to count five times to drive investments.

Electrofuels, or e-fuels, are seen as an option for reducing greenhouse gas emissions. They are produced using captured carbon dioxide or carbon monoxide, along with hydrogen produced from renewable electricity sources such as wind and solar.

The group has also asked to fix targets for the deployment of sustainable hydrogen and hydrogen-based fuels refuelling points in European ports. This will ensure supply of e-fuels to the shipping industry, it said.

It argues that the EU's FuelEU Maritime proposal fails to make e-fuels competitive over more unsustainable fuels at scale.

“Sustainable hydrogen and e-fuels, particularly when produced from renewable sources, need to be incentivized by a dedicated sub target and a multiplier that would drive up investments in these fuels,” said Daniel Fraile, chief policy officer of Hydrogen Europe.