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How harbors can play a role as H2 hubs in the energy transition

Marine and Aviation Applications

M. KILLINGLAND, DNV, Oslo, Norway

More and more companies and countries are trying to cut their carbon emissions to reach net zero. This means big changes are happening everywhere, and it is getting easier to see what the world will look like after these changes. For the maritime sector, the rapid emergence of hydrogen (H2) and new fuel hubs in harbors is one such example of the change unfolding in front of us, but there is still work that must be done to turbocharge this process. At COP28, governments agreed on a deal to transition away from non-renewable energy sources, displaying that the need for change has never been so pressing. 

There are 45 green shipping corridors planned worldwide, a handful of which are at an advanced stage, with H2 converted into new fuels as hugely important to the future of harbors globally. While H2 can be used for the decarbonization of harbors and their operations (e.g., heavy-duty machinery and trucks used onsite), it can also be produced at the site and stored there. Clean H2 derivatives such as ammonia or methanol can also be blended directly into existing infrastructure.   

The maritime sector is amid what is the most important decade for its energy transition, and it is not short of motivations to decarbonize. One area where H2 harbors are already playing a role is in the fjords of Norway, where emissions must be kept low. By 2026, all cruise ships and ferries in these world heritage sites must be emissions free. Recent moves by the International Maritime Organization (IMO) have set more ambitious decarbonization targets for international shipping, such as: 

  • A reduction in carbon intensity in international shipping by at least 40% by 2030 compared to 2008 
  • Uptake of zero or near-zero greenhouse gas (GHG) emissions technologies, fuels and/or energy sources to represent at least 5% (striving for 10%) of the energy used by 2030 
  • GHG emissions from international shipping to reach net zero by or around 2050. 

H2 can be used to tackle these targets in many ways. Consider the various kinds of trucks, small units and other vehicles that drive around which can be electrified with batteries and fuel cells, and the heavy-duty operations where H2 fuel cells can be used in forklifts. 

There are also larger trucks that can use batteries with H2 range extenders, which can be the best of the two worlds. Other fuels also must be part of the energy mix, for the even longer range and heavy-duty transport applications. Logistics hubs, by their very nature, have plenty of fuel infrastructure with the storage and distribution of existing fuels and chemicals. Going forward, they will also provide low-carbon or renewable fuels in the energy transition. The opportunities are obvious but there is still a huge scope to move through the gears and kickstart this movement.

How does a harbor become a H2 hub? Harbors can power a clean maritime future by embracing H2 and sustainable fuels. Changes may include repurposing old facilities, building new ones and expanding the harbor for dedicated bunkering and storage zones. Steps taken must include prioritizing safety with strict protocols and both physical and organizational barrier management for averting risks, training and advanced equipment. Users’ awareness can be spread through campaigns and stakeholder cooperation by documenting efficiency improvements and small wins.

However, decarbonization goes beyond just fuel. Port operations can be electrified, clean energy use incentivized, and efficient practices like shoreside power and reduced idling should be promoted. By collaborating, innovating and documenting their journey, harbors can become hubs for clean fuel, enabling themselves and their users to navigate towards a zero-carbon future at sea.

What must be done to take the next step. The challenge is: how do we accelerate encouraging concepts to be put into practice at a high level and at scale? 

Companies still require convincing that clean H2 and its derivatives are suitable as fuels, and the entire industry is mobilized in updating standards and best recommended practice to hasten adoption. Further tests will be required on pilot schemes before widespread adoption.  

There are some brave individual companies that are pioneers here, often because they are forced to be due to wanting to operate in certain markets—e.g., the fjords, where they have a huge market and cannot afford to pull out.

However, companies also feel an obligation to be part of the transition and to scale it outside these unique pilots. Businesses such as IKEA, Unilever and Amazon are all looking to implement zero-emissions value chains, which require logistical operations that report whether they have reached emissions targets and comply with legislation.

When it comes to the mass production of new technology, there are major barriers, such as high investments and the need for signed purchase agreements before the production plants scale up. For the production of clean H2 to be competitive, more renewable power is needed. This necessitates a need for low power prices over time and contracts to support a subsidy mechanism until the technology is competitive. The financial and regulatory risks, along with technical and safety hazards, must all be challenged in line with one another to ensure that the end goal is reached.

Incentives such as the European Union’s (EU’s) Emissions Trading Scheme (ETS), where ship operators will face high-emission costs, are proving a motivator for the sector. The ETS is an emissions cap-and-trade system that aims to reduce GHG emissions by setting a limit, or cap, on GHG emissions for certain sectors of the economy. An estimated 12,000 ships and 1,600 shipping companies will have to either pay emissions costs or procure new fuels with more efficient operations to abate about 100 MMtpy of CO2, which is ~7% of the EU total. 

Each year, a limited number of EU allowances (EUAs) are made available for trading in the market, and this is reduced yearly for the EU to meet its target of a 55% reduction in GHG emissions by 2030 relative to 1990, and net zero by 2050. Each EUA provides companies a right to emit GHG emissions equivalent to the global warming potential of 1 ton of CO2 equivalent. 

Collaborating on the fuel of the future. An interesting project underway is the Nordic Roadmap for Green Shipping Corridors, which is bringing together stakeholders from across the region to plot a course for a transition to carbon-neutral fuels. Funded by the Nordic Council of Ministers, it has delivered 10 technical reports focused on green shipping corridors and safety aspects of future fuels. It has also identified 81 potential green shipping corridors and shortlisted six promising routes in the Nordics.  

With pilot studies now underway (focusing on H2, ammonia and methanol), it aims to make the Nordics the most sustainable and integrated maritime region in the world by 2030.  

This is just one example of the type of projects that are underway to establish the feasibility of H2 refueling stations on ports, or even having electrolyzers onsite with refineries for ammonia and sustainable fuels. Ultimately, collaboration will be what moves industry towards meeting net-zero targets, and the maritime sector is an important piece of what is a large and complex puzzle.  

About the author

MAGNUS KILLINGLAND is Global Segment Lead Hydrogen and Sustainable Fuels, Energy Systems at DNV, advising and connecting clients with DNV expertise and contributing to industry best practices on net-zero strategies and implementation, enabled by sustainable and low-carbon molecules. This includes de-risking investment decisions for a fast and safe energy transition.