The European shipping industry together with Hydrogen Europe, transport groups and trading companies such as Trafigura are urging the European Commission to accelerate the development and adoption of green hydrogen and ammonia for the shipping industry.

In a letter obtained by Kallanish, the group of companies ask the EU to stimulate the use of alternative fuels within the framework of the so-called FuelEU Maritime Initiative.

Unlike other biofuels for shipping, green hydrogen and ammonia provide a sustainable and scalable solution thanks to the possibility of producing unlimited quantities, the letter says. At the moment, hydrogen and ammonia are very expensive to produce compared to fossil fuels, but production costs can be reduced with economies of scale.

For the significant investments needed in electrolysers and ammonia plants, the European maritime fuel policy must “send a clear demand signal for the potential investors by focusing on these green fuels and their relevant propulsion technologies,” the letter says. It adds that the production of green hydrogen and ammonia for shipping will require about €1.4 trillion ($1.6) in capital investments globally.

“The EU should promote the use of green hydrogen and ammonia by ships as part of its upcoming maritime fuel law,” adds campaign group Transport & Environment, in a separate statement.

The FuelEU Maritime Initiative is set to focus on ramping-up the production, deployment and uptake of sustainable alternative marine fuels. It will also contribute to address the European Green Deal’s ambition of regulating access of the most polluting ships to EU ports and obliging docked ships to drastically reduce their emissions, including through using shore-side electricity.