ICS report sees need for many more hydrogen carriers
Written by Nick Blenkey
Image: ICS
Hydrogen is widely seen as key to meeting global decarbonization ambitions and a large fleet of specialist hydrogen carrier vessels will be needed to meet projected world demand. To meet a global increase of 30 million tonnes of hydrogen traded worldwide, it would require 411 new hydrogen carriers (for long distances) or up to 500 vessels if the hydrogen were transported as ammonia.
That’s one take away from a new report from the International Chamber of Shipping (ICS). Entitled “Turning hydrogen demand into reality: Which sectors come first?,” the report focuses on the potential of clean hydrogen to function as an energy carrier and feedstock to decarbonize multiple sectors, especially hard to abate sectors.
With designs for hydrogen carriers already in place, clearly shipowners are readying to serve the market. How big it will be depends on how demand develops.
The report identifies that to meet future hydrogen demand, the scale of renewable electricity demand for green hydrogen production is unprecedented and leads to once-in-a-generation opportunities and challenges.
Produced by ICS in collaboration with Professor Stefan Ulreich, Professor of Energy Economics at Biberach University of Applied Sciences in Germany, the report seeks to better assess the future supply and demand dynamics of the new zero emission fuels that industrial sectors, including shipping, will use in the coming decades.
“For global hydrogen demand to keep the net-zero by 2050 scenario within reach, demand for hydrogen-based fuel sources would need to scale five times from current levels to reach approximately 500 million tonnes from 2030 to 2050,” says Guy Platten, Secretary General of the International Chamber of Shipping. “One of the main takeaways in this report is the high variability in potential demand. Industry will dominate the hydrogen demand. Shipping however can play a key role as an enabler to the hydrogen economy.”
The report highlights three economies as the main markets to initially drive hydrogen demand – South Korea, Japan and the EU. Europe has a target of 20 million tonnes of hydrogen per year by 2030, with half of that volume to come from imported sources. To meet this expected demand of the EU, the fleet will need to increase by up to 300 vessels for the EU2030 target.
According to the International Energy Agency (IEA) hydrogen use is expected to remain static and within current industrial use cases into 2030. However, to go beyond the current hydrogen demand by existing sectors, infrastructure, enabling regulation and power access barriers need to be addressed for new sectors to begin uptake of hydrogen the report finds.
“Regulatory certainty is vital, and governments are the key to unlocking the opportunity for early adopters by prioritizing demand incentives over supply support to cataltze offtake agreements. One thing is certain, readiness at ports and infrastructure development to remove barriers for maritime uptake will be crucial. This will allow for both the maritime and other sectors to move forward, adding energy-security and enhancing diversification. This is a once in a generation opportunity to transform the whole energy-maritime value chain.”
“Key for the realization of a future hydrogen economy is the infrastructure for production, but also transportation infrastructure,” said Professor Ulreich. “The maritime industry will play a key role by connecting the hydrogen surplus regions with the high consumption areas. However, this necessitates port infrastructure for loading/unloading and pipeline transport from the port to the consumers. A coordinated action would help most to deliver this.”
So, how many hydrogen carriers does this all translate into?
“What we are seeing is that the annual hydrogen demand would mean increasing the fleet to transport hydrogen by ship,“ says Professor Ulreich. “To just meet a global increase if 30 million tonnes of hydrogen traded worldwide, we could need up to 411 new hydrogen carrier vessels (for long distances) or up to 500 vessels if transported as ammonia.”
- Download the report HERE
