Wärtsilä has been contracted to supply the total technology package for the conversion of the Viking Energy to run on ammonia fuel. The original plan to retrofit the vessel with a 2 MW solid oxide fuel cell system was delayed by supply chain and development challenges, but SOFC developer Alma Clean Power will continue to test and scale its direct ammonia-fed technology for maritime applications.
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.
The European Commission has approved a €122 million Lithuanian state grant to support AB AChema to decarbonise fertiliser production at its existing facility in Kaunas. A 171 MW electrolysis plant will be installed, producing enough renewable hydrogen to displace 30% of the current, gas-based feedstock used at the site.
The European Commission has approved a €3 billion German scheme to support the construction of the “Hydrogen Core Network”. The 9,700 km network will act as the foundation of a long-distance, pipeline transport network for hydrogen within Germany, connecting to several EU states and the continent-wide European Hydrogen Backbone.
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 European Commission has signed strategic partnerships with three countries at COP27: Namibia, Kazakhstan and Egypt. Key cooperation areas include boosting the rollout of renewable energy generation for hydrogen production, and European investment to finance renewable hydrogen production. Also in Sharm el-Sheikh, German Chancellor Olaf Scholtz announced the first tender process for H2Global will shortly commence, with a further €4 billion to be invested into the pay-for-difference initiative.
In our most recent episode of Ammonia Project Features, we explored the potential for renewable fertilizers in Europe. Birgitte Holder (Yara) explained that renewable hydrogen is low-hanging fruit for decarbonizing food production, but further emissions reduction will come from working across the full value chain: including on the farm itself. Yara’s agreement with agricultural cooperative Lantmannen is part of this wider focus. From a regulatory perspective, Theo Paquet (Fertilizers Europe) showed us there are many regulatory levers to pull to achieve decarbonization goals in the fertilizer sector, and that national food & energy security concerns may accelerate regulatory change in the coming years.
MEPs have voted to alter the scope of the upcoming Carbon Border Adjustment Mechanism (CBAM) to include hydrogen & ammonia, and for the scheme to cover indirect emissions from manufacture. Meanwhile, two Delegated Acts have established a starting point for rules governing the production of alternative fuels from electrolytic hydrogen, including definitions of “fully renewable” hydrogen and a comprehensive emissions accounting calculation. The European Commission will work with key stakeholders to further clarify and improve the new rules.
The European Commission has announced its latest plan to reduce the EU’s dependence on fossil imports. RePowerEU will encourage a full switch from fossil-based hydrogen to renewable hydrogen, based on the use of carbon contracts for difference. A hydrogen utilisation target of 20 million tonnes per year has also been set, composed of 10 million tonnes from domestic production and 10 million tonnes of imports. Of these imports, the EU has also forecast 4 million tonnes will be in the form of hydrogen-as-ammonia. The new plan marks a significant increase in ambition from the Fit-for-55 package released in July 2021.
Coordinated by Wärtsilä, an R&D group has been provided with €10 million for the Ammonia 2-4 project. The project aims to complete a retrofit for a two-stroke engine vessel by 2025, as well as establishing a laboratory demonstrator for an ammonia-fueled, four-stroke maritime engine.
A group of 28 global organisations (H2Zero) announced significant new pledges to drive the development of the global hydrogen industry at COP26 last week. On the supply side, the pledges add up to 18 million tonnes per year "lower carbon" hydrogen landing in global markets, displacing fossil hydrogen, conventional transport fuel and natural gas for industrial heating applications. On the demand side (including the use of lower carbon hydrogen for fertiliser, chemicals and explosives production), the pledges add up to 1.6 million tonnes. Of particular interest is Yara's pledge to source &/or produce at least 3 million tonnes of reduced carbon ammonia by 2030.
Details of the Commission's comprehensive climate legislation package are now public. Relevant highlights include the inclusion of shipping into the EU ETS, a new tier system for fuel taxation and a carbon border adjustment mechanism. Also this week, Hydrogen Europe calls for an overhaul of the existing Guarantee of Origin (GO) system to address current shortcomings in clean hydrogen certification.
Following last year’s field trials of Diverse Energy’s PowerCube technology in Africa (and AFC Energy’s subsequent acquisition of assets from Diverse), an EU-funded project to commercialize ammonia-fed fuel cells for stationary power generation continues to gather momentum under the title “Project Alkammonia".