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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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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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