eFuel Alliance: Policy barriers stall most of over 300 e-fuel projects
- Published
by Admin
eFuel Alliance on Friday (20 March) said there were more than 300 e-fuel projects that exist worldwide but only a few have reached final investment decision (FID).
The alliance said this when announcing its published blueprint, setting out the concrete regulatory changes needed to mobilise between EUR 34.7 and EUR 46.7 billion in maritime e-fuel investment by 2035.
According to the blueprint, the final investment decision remains a critical barrier for the e-fuel industry.
“The coming months will be decisive for initiating operations before 2030, given that construction and commissioning can take up to four years,” it said.
The paper highlighted that regulatory uncertainty is a major factor deterring offtakers and investors from making long-term commitments.
“A supportive regulatory framework and robust ramp-up strategies are essential to unlock e-fuel investments,” it added.
CEO of the eFuel Alliance, Ralf Diemer, said: “The shipbuilding industry has held up its end of the bargain: more than half of all vessels ordered last year can run on alternative fuels. The market has moved.
“The regulatory framework governing the fuel supply chain has not. In its current form, it is too rigid, too fragmented, and too short-term to drive the investment decisions we need.
“More than 300 e-fuel projects exist globally. Only a fraction has reached the final investment decision. That is not a pipeline problem – it is a policy problem. The amendments we are proposing are specific, implementable, and directly tied to investment outcomes.”
eFuel Alliance also said half of all shipping tonnage ordered in 2024 features alternative fuel-capable propulsion.
79% of the existing orderbook’s deadweight tonnage is designed to run on alternative fuels. The fuel supply chain has not kept pace.
According to the International Energy Agency, only 4% of announced renewable hydrogen production capacity has reached a final investment decision, and just 1% of projects specifically target fuel applications.
“The gap between vessel readiness and fuel availability is not a technical but a policy problem,” it added.
Current commitments fall far short of the volumes required to meet anticipated demand from the rapidly growing fleet of alternative fuel-capable vessels. The shortfall is structural and it can only be closed through targeted legislative action.
The paper’s proposals target three EU regulatory frameworks: the Renewable Energy Directive, the FuelEU Maritime Regulation, and the maritime extension of the EU Emissions Trading System.
Complementing these regulatory adjustments, the blueprint also outlined necessary reforms to public funding schemes to unlock large-scale investment in renewable marine fuels.
Note: The blueprint titled ‘The Market Potential of eFuels’ can be found here.
Photo credit: Chris Pagan on Unsplash
Published: 24 March, 2026
