Green hydrogen and ammonia use by ships should be encourages and the EU should include it in its upcoming maritime fuel law, major shipping industry players have told the EC.

The FuelEU Maritime initiative will require ships carrying EU trade to progressively switch to sustainable alternative fuels and shipping companies DFDS, CMB and Viking Cruises, commodities trader Trafigura, and Transport & Environment say green hydrogen and ammonia are sustainable and can be produced in sufficient quantities to decarbonise the industry.

Biofuels, on the other hand, do not offer a sustainable alternative for shipping, the groups say, as crop-based biofuels emit more than the fossil fuels they replace and there will not be enough advanced biofuels. Instead, lawmakers must send a clear signal to potential investors to focus on renewable electricity-based hydrogen and ammonia when the EU proposes its maritime fuel policy next month, the letter states.

Globally, €1.4tr in capital investments will be required to produce green hydrogen and ammonia for the shipping industry and the EC should seize this opportunity to create new jobs and support sustainable economic growth in line with the EU Green Deal, the groups say.

The EC will propose its FuelEU Maritime Initiative in April. Shipping accounts for about 13 per cent of greenhouse gas emissions from European transport.

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