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Hydrogen

SASHA: Green hydrogen is vital for sustainable bunker fuels in shipping and aviation

New report outlines how governments should prioritise the use of hydrogen and DAC in the aviation and shipping sectors because they lack decent alternatives, amongst others.

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All pathways to truly sustainable fuels for the shipping and aviation sectors require green hydrogen, produced from renewables, with some of them requiring carbon dioxide from sustainable sources like direct air capture (DAC).

This was the main conclusion of a report released on Monday (11 September) by the SASHA Coalition, facilitated by Opportunity Green. 

The report revealed that there is a lack of policy supporting the production of green hydrogen, which is slowing down demand and discouraging investment, creating a “Green Hydrogen Gap”. 

It outlined how governments should prioritise the use of hydrogen and DAC in the aviation and shipping sectors because they lack decent alternatives, and also highlights the need for policy to ensure that these solutions can be rolled out at scale. 

While first-mover ambitious companies can step forward voluntarily to send clear, unambiguous and urgent demand signals to green hydrogen producers, their actions will always be in isolation without the backing of policymakers.  

The Green Hydrogen Gap report by Opportunity Green draws on exclusive research by Arup and looks at the policy landscape of green hydrogen and DAC in the UK and the EU. 

It found that hydrogen production is behind on projections of where it needs to be to meet the temperature goals of the Paris Agreement and that this is due to a lack of guaranteed demand across the board. 

The latest environmental policies from both the EU and the UK focus more on supporting biofuels and/or the use of gas (liquefied natural gas) in aviation and shipping respectively, rather than ensuring that green hydrogen – required for full decarbonisation – is prioritised for aviation and shipping.

Aoife O’Leary, CEO of Opportunity Green and Director of the SASHA Coalition, said: “There is a worrying delay in green hydrogen production, which means that if aviation and shipping don’t make their case clearly and loudly now, they won’t have access to fuels that will truly lead to sustainable decarbonisation.”

“Governments are already prioritising other industries for hydrogen, so without stronger policy, aviation and shipping will be overlooked.”

Kerosene and Heavy Fuel Oil currently meet the bulk of fuel demand for the marine and aviation industries, and it’s estimated that the total consumption of marine fuels account for around 5% of global oil demand.

Sally Prickett, Director of Hydrogen, CCUS and New Fuels in Arup’s Advisory team, said: “Clearly, shipping and aviation will be unable to decarbonise at the scale and pace required without alternative fuels. It’s unlikely that there will be a ‘one solution fits all’ fuel for these sectors, but one thing this research tells us is that green hydrogen will play a critical role in their decarbonisation as a feedstock for the majority of sustainable fuel pathways. Without green hydrogen, these sectors will struggle to find satisfactory zero emissions solutions.” 

According to the report, policy signals are supporting the uptake of hydrogen-derived fuels at both a UK and EU level. However, these are not on the scale that’s needed to meet Paris targets and are just one component that will drive the adoption of hydrogen-derived fuels. 

“Policymakers must recognise that green hydrogen will continue to be in limited supply in the coming decades and should therefore be targeted towards sectors – such as shipping and aviation – that have no more efficient routes to decarbonisation,” it said. 

Nuala Doyle, Policy Officer at the SASHA Coalition, said: “Both shipping and aviation have come under increasing scrutiny for their climate impact, resulting in additional regulation at international, regional and national levels. And regulation will only get stricter over time as the climate crisis worsens.”

“We know that the fuels that will fully decarbonise both sectors require green hydrogen and direct air capture. However, current regulations do little to incentivise these – instead the regulations encourage fuels that either are not scalable or are still fossil fuels. Without regulation that aligns with, and incentivises, the goal of zero emissions, companies may find they end up with stranded assets from investment in a fuel that is no longer acceptable to use.”

Photo credit: SASHA Coalition
Published: 13 September, 2023

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Hydrogen

LH2 Shipping wins Enova funding for two more liquid hydrogen-powered bulk carriers

Company secured USD 36 million for the development and construction of two additional liquid hydrogen-powered bulk carriers.

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LH2 Shipping wins Enova funding for two more liquid hydrogen-powered bulk carriers

Norway’s LH2 Shipping on Tuesday (16 June) said it has been awarded Enova support of NOK 344.3 million (USD 36 million) for the development and construction of two additional liquid hydrogen-powered bulk carriers.

With the latest award, LH2 Shipping is now involved in the development of six hydrogen-powered bulk carrier projects. The announcement builds on previous Enova-supported vessel initiatives and reflects growing momentum for liquid hydrogen as a viable fuel alternative for short-sea shipping to meet decarbonising policy goals.

The new projects represent a continuation of LH2 Shipping’s long-term strategy to establish commercially viable hydrogen-powered vessels while contributing to the development of the supporting fuel and bunkering infrastructure required for large-scale adoption.

“This award is an important strategic milestone for LH2 Shipping,” stated Ivan Østvik, CEO of LH2 Shipping. 

“It strengthens our position as a developer of liquid hydrogen-based zero-emission vessel solutions and brings us yet another step closer to our ambition of enabling a substantial fleet of hydrogen-powered vessels that can help establish a complete maritime liquid hydrogen value chain.”

Since introducing the world’s first hydrogen-powered bulk carrier projects, LH2 Shipping has focused on moving beyond demonstration concepts toward commercially deployable vessels. The addition of vessels five and six further expands the project portfolio and supports continued industrial learning across ship design, fuel systems, operations, and infrastructure.

The Enova support will indirectly enable LH2 Shipping to continue their work developing additional zero-emission solutions for passenger transport and offshore operations, supporting Norway’s broader transition toward a low-emission maritime sector.

“If we are to succeed in the transition to low and zero emission solutions in the maritime sector, we depend on players who dare to go first. LH2 Shipping shows how shipping companies can take the lead and adopt new technology. This is crucial to accelerating development and reducing emissions from shipping,” said Head of Hydrogen and Ammonia Initiatives, Elin Ulstad Stokland at Enova.

This latest Enova award brings total support for the six vessels to more than NOK 800 million and reinforces the momentum behind hydrogen-powered shipping in Norway. Through these projects, LH2 Shipping is offering ship operators to decarbonise bulk transport at scale while contributing to the development of the infrastructure and experience needed for wider industry adoption.

 

Photo credit: LH2 Shipping
Published: 17 June, 2026

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Hydrogen

Klaipėda Port launches Lithuania’s first green hydrogen production, refuelling facility

New station will supply green hydrogen for passenger vehicles, heavy-duty transport, ships and port operations, laying the foundation for a new low-emission transport ecosystem in Lithuania.

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Klaipėda Port launches Lithuania’s first green hydrogen production, refuelling facility

Klaipėda Port recently opened Lithuania’s first green hydrogen production and refuelling facility, marking a significant milestone in the country’s transition to clean energy. 

The new station will supply green hydrogen for passenger vehicles, heavy-duty transport, ships and port operations, laying the foundation for a new low-emission transport ecosystem in Lithuania.

Algis Latakas, Director General of Klaipėda Port Authority, said: “Only a few years ago, green hydrogen at Klaipėda Port was little more than an ambitious vision. It led us into unexplored territory, where we often found ourselves among the first to tackle challenges that had no clear solutions. 

“The journey was demanding, but it gave us invaluable experience. Today, we are proud to open Lithuania’s first green hydrogen facility and contribute to a new chapter in the country’s energy transition. Klaipėda Port has always connected sea and land routes; now it is also becoming a gateway to future energy solutions.”

Development of the green hydrogen project began in 2023. Construction of the facility started in the summer of 2025, and the project quickly gained momentum. The key equipment arrived at the port in October, installation followed shortly afterwards, and in April this year the first green hydrogen was successfully produced.

The facility uses a polymer electrolyte membrane (PEM) electrolyser to produce green hydrogen. At full capacity, it will be capable of producing around 127 tonnes of hydrogen annually.

Klaipėda Port Authority is not only introducing green hydrogen to Lithuania but is also becoming one of its first users. Approximately one quarter of the hydrogen produced at the new facility will be used to power the Authority’s own operations. A newly built hydrogen-powered waste collection vessel will soon enter service in the port, while a hydrogen-powered Toyota Mirai has already joined the Authority’s vehicle fleet. 

These investments reflect a broader commitment to testing, demonstrating and advancing clean technologies in real operating conditions. By using the fuel it produces, Klaipėda Port Authority is helping to create confidence in hydrogen as a viable solution for the future of sustainable transport and port operations.

Designed as open infrastructure, the facility will serve not only the port but also the wider transport and logistics sector. Together with LTG Group, Klaipėda Stevedoring Company BEGA and Volvo Lietuva, Klaipėda Port Authority is exploring opportunities to use hydrogen in road freight transport, railway operations and various port activities. Commercial hydrogen supply is expected to begin in autumn 2026.

The project implemented under the Economic Recovery and Resilience Plan Next Generation Lithuania, funded by the European Union’s NextGenerationEU recovery and resilience facility. The total estimated cost of the hydrogen production and refueling station is approximately €12 million, with around €6 million financed by EU funds.

 

Photo credit: Klaipėda Port
Published: 11 June, 2026

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Alternative Fuels

DNV data shows shift in alternative-fuelled vessel ordering patterns

DNV says shipowners are adopting more varied fuel strategies, reflecting a growing emphasis on optionality, regulatory compliance and risk management in long-life vessel investments.

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DNV data shows shift in alternative-fuelled vessel ordering patterns

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform showed a total of 36 new orders for alternative-fuelled vessels were placed in May 2026.

Activity was primarily driven by LPG/ethane carriers, which accounted for 26 of the orders. A further eight LNG-fuelled vessels were ordered, including six container vessels and two car carriers, alongside two ethanol-fuelled bulk carriers.

So far in 2026, a total of 119 orders have been placed for alternative-fuelled vessels. Of these, LNG-fuelled vessels (60) account for the largest share of the orderbook, with the majority of these (42) coming from the container segment, and a smaller share (12) from car carriers.  

A further 50 orders have been placed for LPG/ethane carriers, while activity in other fuel types remains limited, with orders for methanol/ethanol (4), ammonia (4), and hydrogen (1).  

By the end of May, the share of alternative-fuelled vessels in total tonnage was notably lower than over the same period in 2025.

DNV data shows shift in alternative-fuelled vessel ordering patterns

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “While the pace of alternative-fuelled contracting has varied compared to 2025, the industry continues to move forward in its transition, with owners advancing fuel and technology decisions against a backdrop of evolving regulatory and market conditions.  

“As in previous years, ordering of alternative-fuelled vessels has been led by the container segment, but dynamics are shifting. While activity remains strong, the focus has moved towards smaller vessels, with fewer very large container ships, which are historically more likely to adopt alternative fuels, being ordered. At the same time, we are seeing increased activity in tanker and bulker segments.  

“What is also becoming clearer is that fuel choice is no longer approached as a single bet. Owners are increasingly treating it as a portfolio decision, managing fuel optionality, timing of investment, and exposure to future regulation as they navigate long-life asset decisions.

“This is reflected in more varied ordering patterns, reinforcing that the transition is not progressing in a straight line.”

 

Photo credit: DNV
Published: 5 June, 2026

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