Shipping E-fuels Observatory

T&E examined 80 European green hydrogen and e-fuels projects that could serve the maritime sector. While some have progressed in their development, total shipping e-fuels production appears unlikely to reach targeted levels, unless new policy incentives are implemented. Although the listed projects could produce 3.6 million tonnes of oil equivalent (Mtoe) by 2032, less than 5% is dedicated primarily to shipping, and only a small portion of those volumes is linked to operational projects.

This sends a weak signal to the maritime sector, considering that those volumes are below FuelEU’s 2031 1% e-fuel uptake threshold and well below the 2034 sub-target of 2%. In the absence of clear EU and national policies combined with dedicated financial incentives, Europe’s shipping e-fuels targets are likely to be met with imported fuels (or not met at all) representing a missed opportunity for Europe’s climate leadership as well as to further its industrial and energy security goals.

The largest e-fuel project serving the maritime sector became operational in 2025. The Kassø project, developed by European Energy, supplies part of its e-methanol to a containership operated by Maersk. In Spain, a green ammonia project by Iberdrola-Fertiberia has been producing 3,000 tonnes of e-ammonia annually since 2022, while in Norway, the Herøya project by Yara produces e-ammonia since 2024. Both projects intend to produce fertilisers, with potential future uses in shipping. In addition, three hydrogen projects in Norway have reached FID and plan to serve the maritime sector as their main target. While all these projects show that green e-fuel production is technically feasible in Europe, their combined volumes are not sufficient, accounting for a quarter of the volumes required for shipping to meet FuelEU Maritime’s 1% RFNBO 2031 threshold.