International Chamber of Shipping unveils key report on shipping's critical role In addressing growing green hydrogen needs

The International Chamber of Shipping (ICS) has published a crucial report highlighting the essential role shipping will play in addressing the growing global demand for green hydrogen.

ICS has unveiled a pivotal report on the escalating need for clean hydrogen to decarbonize major industries and the significant opportunities it presents for the shipping sector, Caliber.Az reports citing the foreign media.

Authored by Professor Stefan Ulreich from Biberach University of Applied Sciences, Germany, the report was introduced at Malaysia Maritime Week.

Titled “Turning Hydrogen Demand Into Reality: Which Sectors Come First?”, the report explores how clean hydrogen can act as a key energy carrier and feedstock to decarbonize hard-to-abate sectors. It underscores that fulfilling future hydrogen demand will necessitate a massive increase in renewable electricity for green hydrogen production, marking both unprecedented opportunities and challenges.

The report, a collaboration between Professor Ulreich and ICS, aims to provide a comprehensive understanding of the future supply and demand dynamics for zero-emission fuels, highlighting the crucial role they will play in various industrial sectors, including shipping.

Guy Platten, Secretary General of the International Chamber of Shipping, emphasized the critical need for a fivefold increase in hydrogen demand to meet the net-zero by 2050 targets. "To stay on track for net-zero by 2050, hydrogen-based fuel demand must scale from current levels to approximately 500 million tonnes between 2030 and 2050," Platten stated. "The report highlights significant variability in potential demand, with industry being the primary driver. However, shipping has a crucial role in enabling the hydrogen economy."

The report identifies South Korea, Japan, and the EU as key initial drivers of hydrogen demand. Europe aims for 20 million tonnes of hydrogen per year by 2030, with half expected to be imported. To meet this target, the EU’s fleet will need to expand by up to 300 vessels.

The International Energy Agency (IEA) projects that hydrogen use will remain stable within current industrial applications until 2030. To broaden its application, advancements in infrastructure, regulation, and power access are essential for new sectors to adopt hydrogen.

Guy Platten emphasized, "Developing ports and infrastructure to eliminate barriers for maritime hydrogen uptake is essential. This advancement will propel both the maritime and other sectors forward, bolstering energy security and diversification. We are facing a once-in-a-generation chance to revolutionize the entire energy-maritime value chain."

Professor Stefan Ulreich highlighted that establishing infrastructure for hydrogen production and transportation is critical to realizing a future hydrogen economy. "The maritime industry will be pivotal in linking hydrogen surplus regions with high-demand areas. However, this requires significant investment in port infrastructure for loading and unloading, as well as pipeline transport from ports to consumers. Coordinated efforts are crucial for achieving this."

Ulreich also pointed out that meeting the projected annual hydrogen demand would necessitate a substantial increase in the fleet. To accommodate a global rise of 30 million tonnes of traded hydrogen, up to 411 new hydrogen vessels will be needed for long-distance transport, or up to 500 if transported as ammonia.