The European Commission said it granted approval for a Dutch state aid scheme for renewable hydrogen, methanol run ships on shortsea trades operating in the face of stricter regulatory requirements.
The scheme for renewable hydrogen, methanol run ships will offer direct grants for the purchase of new zero-emission ships and also for the upgrade of presently operating vessels to operate on the two low-carbon fuels renewable methanol or renewable hydrogen, with funding being available between 2027 to 2031, a European Commission statement said.
The Netherlands is going to focus on passenger, cargo, and work vessels, mainly active in the short-sea shipping category. Stricter decarbonization requirements will be imposed on shipping companies through the EU Emissions Trading System and FuelEU Maritime rules, the EC said.
The coverage of the ETS on maritime transport continues to grow gradually in the period 2024-2026 depending on the regulatory design, while FuelEU standards are tightening every 5 years from 2025 to 2050.
The Dutch scheme could help speed up the uptake of renewable methanol and green hydrogen as marine fuels in Northwest European waters, especially within the Amsterdam-Rotterdam-Antwerp hub, in which short-sea shipping activity is centred. At present, alternative marine fuels have limited market usage, mainly due to their cost premiums relative to conventional marine gasoil and limitations on infrastructure.
The S&P Global Energy unit Platts evaluated the delivered bunker price for low-carbon methanol at $1,263.62/ metric ton July 24, which is equivalent to $58.80/gigajoule. The cost of 0.1%-sulfur marine gasoil was $27.90/Gj.