T&E calls for 6% green hydrogen mandate in EU shipping by 2030

Clean transport NGO Transport & Environment (T&E) thinks a 6% green hydrogen target for the shipping industry by 2030 can create an entire supply chain network and boost demand for zero-emission fuels.

PHOTO: Oil refinery and storage tanks in the Port of Rotterdam, Netherlands. Getty Images

T&E recommends including the mandate in the proposed draft of the EU's FuelEU Maritime Regulation.

The NGO claims the mandate can create guaranteed shipping demand for 800,000 mt of green hydrogen by 2030. The Netherlands, Belgium and Spain would be the biggest drivers of demand for greener fuels as they have sizeable bunkering markets, it said.

In addition to the mandate, T&E proposes to bring forward the European Commission (EC) regulatory targets by five years, and keep 2050 as a deadline for the last carbon emitting fuel usage. An extra 480 million mt of carbon emissions could be reined in through these measures, and enable the shipping industry to achieve a net-zero target by 2050, and in line with the 2015 Paris Agreement.

T&E argues that green fuel production is at the early stages. 8.6 GW of electrolyser capacity is needed to produce green hydrogen for the shipping industry alone.

A multiplier of five can be brought under FuelEU Maritime Regulation, it says. Multipliers are a form of incentives allowing each mt of hydrogen used to contribute five times towards achieving regulatory targets, and contribute to bridge the gap between hydrogen and conventional fuels.

The proposed FuelEU Maritime Regulation draft is currently under review in the EU Council and EU Parliament.

Earlier this week, the Getting to Zero Coalition suggested using a portion of the revenue generated from the EU ETS (EU Emissions Trading System) to fund Contracts for Difference (CfD) programmes to incentivise private investments in green fuels production.