MEPC 82 featured important progress in the ongoing development of the IMO’s “mid-term measures” to cut GHG emissions. States remain divided over the precise architecture of the financial mechanism, and the distribution of revenues received significant attention - particularly from states concerned about unjust or inequitable consequences of the energy transition.
The FuelEU Maritime Regulation is set to launch on August 31, requiring companies to submit monitoring plans ahead of its full implementation in January 2025. With modest initial targets and sophisticated compliance mechanisms like banking, borrowing, and pooling, the scheme offers flexibility while driving innovation in sustainable maritime technologies. The scheme also offers extra incentives for companies to proactively embrace Renewable Fuels of Non-Biological Origin (RFNBOs), before mandates enter into force next decade.
Fertiglobe has won the first H2Global pilot auction for renewable ammonia, promising to deliver 397,000 tons of renewable ammonia between 2027 and 2033. H2Global’s announcement comes at the end of a two year auction process. Following the H2Global announcement, Fertiglobe committed to a twenty-year offtake deal for renewable hydrogen feedstock from the Egypt Green Hydrogen project, demonstrating the investor certainty fostered by the auction.
The Green Hydrogen Organisation (GH2) has released a report sketching out considerations for hydrogen off-take agreements. It emphasises the importance of balancing risks between prospective buyers and sellers, given the challenges facing a nascent market. It also analyses the respective merits of fixed & variable pricing models, supply regulation and other key off-take provisions.
The Green Hydrogen Organisation (GH2) and Trovio have announced a strategic partnership to develop a digital global registry for certification of hydrogen and its derivatives. The partnership will leverage CorTenX, Trovio’s blockchain-powered environmental asset registry. Trovio and GH2 believe this technology will promote transparency, traceability, and compliance in the certification space.
The European Hydrogen Bank has awarded nearly €720 million to seven renewable hydrogen and ammonia projects. The funding will act to bridge the price gap between the cost of hydrogen production and the price buyers are willing to pay. Recipients will receive €0.37 - €0.48 in subsidies per kilogram of renewable hydrogen, and will collectively produce 1.58 million tons of renewable hydrogen over ten years. In conducting a transparent auction process, the European Commission has also provided vital insights into trends in demand for renewable hydrogen and ammonia.
The IMO’s Maritime Environmental Protection Committee has made significant strides towards implementing its net-zero agenda. The IMO is seeking to implement a fuel standard supported by a pricing mechanism. While many details remain unresolved, important steps forward have been made on emissions boundaries, flexibility elements and default value calculation. The goal of launching policy measures by the end of 2025 remains ambitious, but the IMO has sent a clear signal that it is committed to its net-zero roadmap.
OCI Global will deliver ammonia produced at its Texas plant to COMPO EXPERT in Germany, replacing 25% of its feedstock with low-carbon ammonia from this year. Meanwhile, the Indian Farmers Fertiliser Cooperative Limited (IFFCO) will offtake 200,000 tons of renewable ammonia per year from ACME’s under-development plant in Gopalpur, Odisha. This second deal will be facilitated by the use of “Internationally Transferred Mitigation Outcomes” (or ITMOs), a credit mechanism established by the Paris Agreement.
The Egyptian Parliament has ratified an incentive package for renewable hydrogen producers, aiming to pave the way for a rapid expansion of the sector. The incentives range from tax concessions to administrative streamlining and will seek to create an attractive investment climate. Egypt is well-located to play a leading role in meeting European demand for hydrogen exports. It is not alone in this ambition, however. Similar schemes have been launched by countries such as Oman.
A series of flagship hydrogen initiatives were launched at COP28 last month. The initiatives are headlined by a 37-country joint declaration on mutual recognition of certification schemes, a response to sustained calls for increased global regulatory consistency. Additionally, the new ISO methodology for calculating hydrogen emissions was unveiled, paving the way for harmonisation.