Europe risks falling behind China in green shipping fuel production
Financial support and clean fuel targets at the EU level can help Europe stay competitive in the emerging market, according to a report by T&E.
IMAGE: The Port of Hamburg with the Elbe river. Getty Images
According to The European Federation for Transport & Environment (T&E)'s latest e-fuels tracker, Europe has 69 e-fuel projects that could serve the maritime sector, but only six are operational. In comparison, China has three operational projects that currently produce 10 times more than the European projects.
The group warns that if this trend continues, Chinese output could flood European markets, unless Europe strengthens its domestic competitiveness. It has urged Europe to step up investment in domestic e-fuel production to maintain its competitive position.
Estimated production volumes are sufficient to meet FuelEU Maritime's 1% Renewable Fuels of Non-Biological Origin (RFNBO) target by 2031, largely driven by the Andalusian Green Hydrogen Valley project. The Spanish project is expected to supply e-fuel to several industries, including shipping, and produce 474,000 tonnes of oil equivalent (toe) of e-ammonia and e-methanol annually.
However, it is not yet expected to produce enough e-fuel to meet FuelEU Maritime's 2% e-fuels target that could apply from 2034.
In China, 11 e-fuel projects will primarily target the maritime sector, with a combined projected output of 1.50 million-toe. Additionally, four more projects are expected to supply e-fuels to shipping alongside other industrial sectors, contributing a further 0.22 million-toe.
According to the report, these production volumes could help shipping companies comply with green e-fuel mandates introduced at the regional, national and global levels.
The report notes that three projects are already operational in the first phase of their production plans, while another 10 are under construction.
By Gautamee Hazarika
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