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Australia advances renewable hydrogen push with ARENA project shortlist

Renewable hydrogen’s potential to develop low-emission fuels for aviation and shipping, as well as key inputs for fertiliser could also help improve the nation’s energy resilience in the longer term, says ARENA CEO.

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The Australian Renewable Energy Agency on Wednesday (13 May) announced the shortlisted projects for Round 2 of the Hydrogen Headstart Program, marking a major step forward in scaling Australia’s renewable hydrogen industry.  

The projects selected to progress to the next stage in the application process are some of the most advanced large-scale renewable hydrogen proposals in the country, spanning multiple states and a range of end uses, including ammonia and alternative fuels. 

The Australian Government has revised the amount of funding allocated to the program in the 2026 Federal Budget to $1 billion, and ARENA will now invite shortlisted projects to submit full applications. The full application phase includes a rigorous assessment process and detailed due diligence. Applicants must satisfy program criteria, with only those that meet a high merit threshold being considered for funding. 

ARENA CEO Darren Miller said the level of engagement in Round 2 of Hydrogen Headstart demonstrates that industry remains committed to building a renewable hydrogen sector in Australia.  

“Renewable hydrogen presents Australia with a significant economic and decarbonisation opportunity. Its potential to develop low-emission fuels for aviation and shipping, as well as key inputs for fertiliser could also help improve the nation’s energy resilience in the longer term,” he said. 

“Renewable hydrogen is a complex, capital-intensive industry and progress takes time, but it is a critical enabler of industrial decarbonisation, particularly for hard-to-abate sectors. What we’re seeing are expressions of interest that are considered and well aligned to future market demand.”

The shortlisted applicants are: 

Australia advances renewable hydrogen push with ARENA project shortlist

Announced in the 2023-24 Budget, the Hydrogen Headstart Program aims to catalyse Australia’s hydrogen industry to take advantage of the country’s opportunity to be a global hydrogen leader.  

Round 2 of Hydrogen Headstart builds on ARENA’s existing support of renewable hydrogen, with the Agency having already committed more than $1.2 billion to two projects in Round 1, and over $396 million to 68 renewable hydrogen projects since 2017 through other funding programs. 

Under the Program, projects seeking to produce renewable hydrogen, or derivatives, can apply for a production credit delivered over ten years to bridge the commercial gap between the cost of producing renewable hydrogen and market prices. 

Shortlisted applicants now have until early September 2026 to submit their full application.

 

Photo credit: Dan Freeman on Unsplash
Published: 18 May, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders down 11.6% in H1 2026

In total, 137 alternative-fuelled vessels were ordered in the first half of 2026 compared to 155 in the same period in 2025.

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DNV: Alternative-fuelled vessel orders down 11.6% in H1 2026

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform showed a total of 15 new orders for alternative-fuelled vessels were placed in June 2026.

This consisted of 10 orders for LNG-fuelled vessels, nine of which were car carriers and one a CO2 carrier. The remaining five orders were for LPG/ethane carriers.

Two LNG-bunker vessels were also ordered in June, bringing the total in this segment to seven so far in 2026.

In total, 137 alternative-fuelled vessels were ordered in the first half of 2026, down 11.6% from 155 in the same period in 2025. 

Over half of these (73) were for LNG-fuelled vessels, with most coming from the container (42) and car carrier (21) segments. LPG/ethane carriers were also prominent, with 55 new orders, a significant uptick compared to the first half of 2025 (15). The remaining orders were for vessels fuelled by methanol (2), ethanol (2), ammonia (4), and hydrogen (1).

Deliveries in the first half of the year point to continued uptake of alternative-fuelled tonnage across several segments, with 61 LNG-fuelled vessels and 38 methanol-fuelled vessels delivered so far in 2026.

More recently, Exmar took delivery of what it described as the first oceangoing dual-fuel ammonia vessel, marking a step beyond earlier ammonia-fuelled deliveries, which have largely been associated with pilot or demonstration projects rather than commercial deployment.

DNV: Alternative-fuelled vessel orders down 11.6% in H1 2026

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “What we can take away from the first half of 2026, in terms of the alternative-fuels orderbook, is that we have a market progressing at different speeds depending on segment economics, fuel availability, and the regulatory landscape. Shipowners and other stakeholders are pursuing different pathways based on their individual priorities and requirements.

“LNG remains the leading near-term fuel option, with order activity continuing to be led by containers and car carriers. LPG and ethane carriers have also accounted for a significant share of activity in the first half of the year, while developments in areas such as ammonia and ethanol show that multiple pathways continue to be explored.”

 

Photo credit: DNV
Published: 3 July, 2026

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Alternative Fuels

Verra releases new methodology for alternative low-carbon bunker fuels

New methodology provides the first structured, independent accounting framework for quantifying emission reductions in maritime transport, bridging a critical regulatory gap in global trade.

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Verra, a nonprofit organisation that develops and manages the standards for climate and sustainable development, recently released a new methodology in the Verified Carbon Standard (VCS) Programme, VM0053 Alternative Low-Carbon Fuels for Shipping, v1.0. 

Verra said the methodology provides the first structured, independent accounting framework for quantifying emission reductions in maritime transport, bridging a critical regulatory gap in global trade and enabling the related climate benefits to scale.

VM0053 applies to project activities that involve using low-carbon alternative fuels (e.g., hydrogen produced through water electrolysis, green ammonia, and electro fuels [e-fuels] such as e-LNG, e-LPG, e-diesel, and e-methanol) to replace fossil fuels in shipping. 

The methodology applies to new or existing ships, regardless of gross tonnage, operating in territorial or high seas.

Verra added that maritime shipping carries over 80% of global freight and remains a hard-to-abate sector where reducing greenhouse gas emissions has proven to be challenging. 

“This methodology helps unlock finance for low-carbon alternative fuels by creating a new revenue stream that can offset the high premium associated with e-fuels,” it said.

“It supports the use of drop-in alternative fuels that can be used to displace fossil fuels in the engines of existing fleets, leveraging these fleets to realise emission reductions. Additionally, this methodology provides a credible mechanism for sourcing, verifying, and scaling reductions in value chain emissions.”

VMD0053 was developed by Iino Kaiun Kaisha, Ltd., Grütter Consulting, and Verra. The methodology underwent public consultation in 2024 as part of Verra’s methodology development process.

Note: The  new methodology ‘VM0053 Alternative Low-Carbon Fuels for Shipping, v1.0’ can be viewed here

 

Photo credit: CHUTTERSNAP on Unsplash
Published: 22 June, 2026

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Engine

BeHydro secures LR’s first class approval for 100% hydrogen marine engine

Engine has been developed and tested at ABC Engines’ facility in Ghent and is designed to operate entirely on hydrogen, without the need for pilot fuels.

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BeHydro secures LR’s first class approval for 100% hydrogen marine engine

Classification society Lloyd’s Register (LR) on Wednesday (17 June) said it has issued the first Type Approval Certificate for a 100% hydrogen-fuelled, spark-ignited marine engine.

The approval has been awarded to the hydrogen engine developed by BeHydro and confirms the design meets LR’s requirements for safety, performance and reliability in marine applications.

The engine has been developed and tested at ABC Engines’ facility in Ghent and is designed to operate entirely on hydrogen, without the need for pilot fuels. This simplifies system design and removes onboard carbon emissions at source, positioning the technology as a practical option for operators exploring zero-carbon propulsion.

Claudene Sharp-Patel, Global Technical Director, Lloyd’s Register, said: “The issue of this Type Approval Certificate demonstrates that hydrogen-fuelled internal combustion engine technology is continuing to mature as a viable option for maritime applications.

“For shipowners and operators, independent certification is essential in building confidence that emerging fuel technologies can meet the industry’s expectations for safety, reliability and operational performance.”

Tim Berckmoes, CEO at ABC Engines, said: “This LRS type approval of our BeHydro 100% hydrogen engines with zero emissions is a confirmation of the future proof technology that BeHydro can offer to innovative shipowners worldwide.

“The 100% hydrogen engine range is available from 900 kW till 2670 kW for different marine applications.”

LR previously awarded Type Approval to BeHydro for its hydrogen-powered dual-fuel engine in 2023, which was the first Type Approval for a dual-fuel hydrogen engine. 

 

Photo credit: Lloyd’s Register
Published: 19 June, 2026

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