Hydrogen’s seaborne future faces infrastructure hurdles

Hydrogen’s promise as a viable seaborne cargo remains hampered by delays in infrastructure development and regulatory challenges, as outlined in a recent Argus Media webinar.

Industry experts painted a picture of optimism tempered by realism, highlighting the demand for hydrogen and its derivatives such as ammonia, while questioning the feasibility of ambitious targets set for the coming decade.

“Traction in the marine market has been elusive,” remarked Argus Media senior vice president energy transition Tim Hard.

He noted ammonia, a potential carrier for hydrogen, has struggled to find adoption as a maritime fuel, with LNG continuing to dominate the shipping industry’s decarbonisation efforts.

The first deliveries of ships capable of handling low-carbon ammonia are expected in 2025, but doubts remain about the scalability of such ventures, given the slow progress on supporting infrastructure.

The development of import terminals and cracking facilities for ammonia – a critical step in establishing hydrogen as a cargo – has been sluggish.

Argus Hydrogen and Future Fuels editor Stefan Krümpelmann commented the absence of tangible advancements in midstream infrastructure has delayed investment decisions, compounding regulatory uncertainties that deter stakeholders from committing to projects.

Onshore production challenges further exacerbate the issue. Orders for hydrogen-making infrastructure were overstated in 2023, with many projects either delayed or cancelled.

Mr Hard observed that even under optimal policy conditions, hydrogen capacity by 2030 is projected to fall short of targets by half.

Despite these challenges, potential supply hubs are emerging.

The Middle East, with its abundant resources, and South America, with its renewable energy capacity, are well-positioned to lead the export of hydrogen and ammonia. 

However, until infrastructure and policy frameworks align, hydrogen’s maritime future remains uncertain.