EU backs methanol and hydrogen uptake in Dutch shipping

The European Commission has approved a €103 million ($117 million) Dutch State aid scheme to support the deployment of methanol- and hydrogen-powered vessels.

IMAGE: A container ship docked at the Port of Rotterdam in the Netherlands. Getty Images

The funding will support newbuilds and retrofits that enable vessels to operate on methanol or hydrogen. It covers multiple vessel types, including passenger and cargo, primarily in the short-sea shipping segment.

The aid will be awarded as direct grants between 2027 and 2031 through a competitive selection process.

According to the Commission, the scheme is designed to help offset the higher costs of adopting low- and zero-emission propulsion technologies and support compliance with the EU's FuelEU Maritime regulation and the EU Emissions Trading System (EU ETS).

By Konica Bhatt

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