Academics Highlight 'Major Gap' in Government Support for Carbon-Neutral Fuel Production

The shipping industry is calling for certainty on hydrogen production as soon as possible. File Image / Pixabay

New research has highlighted a 'major gap' between the level of government support for alternative fuels currently being provided and what will be needed.

Researchers at the University of Manchester's Tyndall Centre have published a new report titled Shipping's Role in the Global Energy Transition, industry body the International Chamber of Shipping said in a statement on its website on Tuesday.

While the world needs 50-150 million mt/year of low-carbon hydrogen by 2030, projects announced thus far will only produce 24 million mt/year by that date, according to IEA forecasts cited in the report. Just 4% of those projects have received a final investment decision.

"New green fuels are essential to meet the Paris climate goals, and there is a pivotal role for the shipping sector in transporting them," Alice Larkin, a co-author of the report, said in the statement.

"But production of green fuels must be scaled up – there is a yawning gap between current plans and what is needed to meet the Paris goals."

The shipping industry is calling for certainty on hydrogen production as soon as possible, in order to be able to order ships capable of transporting the hydrogen-based fuels, according to the report.

"The Tyndall Centre's report identified several potential considerations for government policy to increase their effectiveness at enabling investment," the ICS said in the statement.

"These include introducing mandates for increasing percentages of green hydrogen, creating 'production credits' for the production of hydrogen, or providing guaranteed markets and prices for producers and consumers.

"Such measures are already being trialled in the USA, Germany, and India."