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ENGINE on The Week in Alt Fuels: Trump doctrine could favour blue hydrogen

Trump’s recent executive orders are unlikely to impact existing tax incentives for low- and zero-emission fuel production in the US, but they may redirect focus from green to blue fuels.

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Trump’s recent executive orders are unlikely to impact existing tax incentives for low- and zero-emission fuel production in the US, but they may redirect focus from green to blue fuels.

US President Donald Trump recently issued an executive order to pause all unspent federal funding tied to the Inflation Reduction Act (IRA). Federal agencies now have 90 days to report how these funds align with the administration’s broader energy goals to the Office of Management and Budget and the National Economic Council.

This order has raised questions about its potential impact on the US low- and zero-emission fuel production sector. But some experts suggest that the move is unlikely to harm the existing tax subsidies for clean fuel production under the IRA.

“All spending on Inflation Reduction Act and IIJA (Bipartisan Infra Law) ordered to be stopped by Trump Executive Order. I assume this applies to unspent discretionary grants and loans like most (all?) of DOE LPO and GDO, but not tax credits,” said Rob Gramlich, president of power-grid consultancy Grid Strategies. He added that stopping mandatory grants would venture into legal complexities under the impoundment law, which requires such funds to be spent unless overridden by the Supreme Court.

IRA tax credits like 45V for green hydrogen and 45Q for carbon capture promote the production of green and blue hydrogen-based fuels in the US by reducing the production cost of these fuels.

These subsidies could benefit several green and blue fuel projects in the US that could produce hydrogen-based fuels for the bunker market. For instance, Methanex and Woodside Energy are developing green methanol and blue ammonia production in Beaumont. HIF Global is building an e-methanol plant in Matagorda County, and LSB Industries has plans for a blue ammonia plant near the Houston Ship Channel.

Removing tax credits will raise low-carbon fuel production costs and contribute to keep price gaps with fossil fuels wide.

But since they are already enacted, removing them would require further congressional action, which could “prompt legal challenges,” according to Robert Moczulewski, senior director at tax advisory firm Baker Tilly.

Gerben Hieminga, senior energy sector economist at ING, believes that “hydrogen and CCS tax credits can survive and continue to play a crucial role in reducing costs” under the Trump administration. In fact, they may even see “loosened eligibility criteria,” which can help to reduce costs, he added.

He also noted that the freeze could impede funding for green hydrogen technologies such as electrolysers, but Trump’s focus on natural gas and carbon capture and storage (CCS) might boost blue hydrogen production.

“Blue hydrogen is likely to dominate green hydrogen, allowing the industry to grow more significantly due to the larger scale of blue hydrogen projects,” he said, estimating US blue hydrogen production could reach 4.8 million mt/year by 2030, compared to only 1.2 million mt/year of green hydrogen.

While tax credits may survive Trump’s presidency, Hieminga cautions that uncertainties around “tax credit guideline finalisation, non-credit funding, and government-enabled hydrogen development programmes can slow down project development.”

In other news this week, Spanish project developer Reolum plans to build a plant to produce 140,000 mt/year of e-methanol for bunkering and other industries. The plant will be located in the Castilla y León region of northwestern Spain and is expected to become operational by 2027.

Swedish e-fuel company Liquid Wind plans to build another 100,000 mt/year e-methanol production plant in Finland. The fuel produced will primarily be supplied to the maritime and aviation sectors. Commercial operations are expected to begin in 2029.

Global marine fuels supplier Monjasa will start supplying biofuel bunker blends in the Panama Canal area. Monjasa will offer ISCC-certified B30-VLSFO blends in Panama, the company said in a social media post. It expects to supply about 5,000-7,000 mt/month.

By Konica Bhatt

 

Photo credit: Venti Views on Unsplash
Published: 27 January, 2025

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Methanol

World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Operation involved the delivery of approximately 2,800 MT of green methanol to “Arctic Tern” via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel “M/V Hai Gang Zhi Yuan”.

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World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Marine fuel provider World Fuel on Tuesday (21 July) said it successfully completed the first green methanol bunkering of M/V Arctic Tern, with EUKOR Car Carriers and SIPG Energy at the Port of Shanghai. 

Arctic Tern is the first vessel in the new Shaper Class series of car carriers. 

The operation involved the delivery of approximately 2,800 MT of green methanol to Arctic Tern via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel M/V Hai Gang Zhi Yuan, the largest vessel of its kind in operation. 

The bunkering operation was carried out at Haitong Terminal, Waigaoqiao Port Area, Shanghai Port, with cargo handling operations conducted simultaneously during bunkering.

This marks EUKOR Car Carriers’ first green methanol operation and the first time Arctic Tern has bunkered methanol since its delivery on 9 July. The operation marked the first bunkering at Shanghai Port of green methanol produced locally in Shanghai for an international PCTC operator. 

It also demonstrated the city’s integrated green methanol value chain, spanning local production, storage and bunkering, and established a replicable “Shanghai Model” for green methanol supply.

World Fuel arranged the supply and delivery of the fuel on behalf of EUKOR Car Carriers, working with SIPG Energy as the physical supplier at the Port of Shanghai.

The green methanol supplied was produced from municipal solid waste, ISCC-EU certified, and had a carbon intensity value below 25 gCO₂e/MJ.

Arctic Tern is the first of fourteen Shaper Class vessels ordered by Wallenius Wilhelmsen. With a capacity of 9,300 car equivalent units and methanol dual-fuel capability, the vessel will be operated by EUKOR Car Carriers, jointly owned by Wallenius Wilhelmsen and Hyundai Motor Group. Following her first green methanol bunkering, Arctic Tern will continue her maiden voyage from Asia to Europe.

Xavier Leroi, COO Shipping Services at Wallenius Wilhelmsen and CEO of EUKOR Car Carriers, said: “Completing Arctic Tern’s first green methanol bunkering shortly after delivery is a significant milestone towards our decarbonisation ambition for both EUKOR Car Carriers and Wallenius Wilhelmsen. It demonstrates how investments in next-generation vessel technology and fuel flexibility are being translated into real-world operations. 

“This achievement reflects the strong collaboration between all parties involved. Together, we have shown how partnerships across the maritime value chain can help make lower-emission fuels available and operationally viable at scale.”

Mark Tamsitt, SVP Global Marine Sales at World Fuel, said, “The first bunkering event with a new fuel is a significant moment for any shipowner, and our role is to make it as seamless as possible. By connecting EUKOR Car Carriers with SIPG Energy’s proven green methanol capability at the Port of Shanghai, we were able to deliver on reliable supply, fuel quality, and safe processes. As more of our customers bring methanol dual-fuel tonnage into service, we are committed to being the partner that makes these kinds of operations routine.”

Mr. Zhang Da, General Manager of SIPG Energy, said, “Welcoming Arctic Tern to the Port of Shanghai for her first green methanol bunkering demonstrates the strength and maturity of our supply capability. Building on our well-established methanol ship-to-ship bunkering services for container vessels, we have already extended such services to pure car and truck carriers (PCTCs). This bunkering sets a new record for the largest single SIMOPs green methanol bunkering for PCTCs in China, marking another step in building Shanghai’s position as a global green energy hub for international shipping.”

This operation follows Wallenius Wilhelmsen’s announcement on 9 July that Arctic Tern would complete her first methanol bunkering shortly after delivery. The vessel entered service on routes between Asia and Europe immediately following handover from China Merchants Jinling Shipyard in Nanjing.

 

Photo credit: World Fuel
Published: 22 July, 2026

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Ammonia

HPA and MB Energy develop safety concept for STS ammonia bunkering

HPA says the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

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HPA and MB Energy develop safety concept for STS ammonia bunkering

The Hamburg Port Authority (HPA) and integrated energy company MB Energy on Tuesday (21 July) said they have completed a comprehensive risk analysis and developed a dedicated safety concept for ship-to-ship ammonia bunkering.

MB Energy said the analysis lays the groundwork for the safe introduction of ammonia as a future marine fuel.

“With our planned ammonia import terminal in Hamburg-Blumensand, MB Energy intends to provide the reliable land side supply infrastructure needed to support this transition across northern German ports,” it said in a social media post. 

Mabanaft Group was renamed to MB Energy last year and merged over 50 existing brands under one identity. 

Separately, HPA said the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

“The focus is in particular on container ships, cruise ships as well as RoRo and ConRo (Container/RoRo) ships,” it said. 

“We expect ammonia to establish itself as an alternative marine marine fuel in the coming years. With our preparatory work, we are already creating the conditions to welcome the first ammonia-powered ships in Hamburg and to bunker them safely.:

HPA added that the import terminal for ammonia planned by MB Energy from 2029 will make a decisive contribution to ensuring the reliable availability of ammonia as a bunker fuel in northern German ports in the long term. 

“The use of an ammonia bunker barge is considered a possible addition to the landside infrastructure to enable ship bunkering in the port and beyond in the future,” it said.

Related: Mabanaft Group renames as MB Energy, merging over 50 brands under one identity

 

Photo credit: Hamburg Port Authority
Published: 22 July, 2026

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LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

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PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions. 

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post. 

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024. 

 

Photo credit: Pacific International Lines
Published: 21 July, 2026

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