More Than 300 E-Fuel Projects Held Back by Policy Gaps

by Ship & Bunker News Team
Friday March 20, 2026

More than 300 e-fuel projects have been identified globally, but only a small number have reached final investment decision (FID), according to a position paper from the eFuel Alliance.

The report points to weak market signals and regulatory uncertainty as key barriers, limiting project bankability and delaying investment, it said in an email statement on Friday.

At the same time, shipping is moving ahead with orders for alternative-fuel capable vessels.

50% of all newbuild tonnage ordered in 2024 is capable of running on alternative fuels.

However, being able to run on alternative fuels does not mean ships will use them, unless fuel supply keeps pace.

This mismatch is already becoming clear.

Around 13.7 million mt of e-fuels will be needed to meet the IMO’s 5% GHG reduction target by 2030, while current commitments are expected to deliver only about 1.07 million mt.

To close the gap, the report estimates that between €34.7 billion and €46.7 billion in investment will be required by 2035, but says current policy frameworks are not sufficient to unlock that level of capital.

Without clearer policy direction and stronger investment signals, it warns, fuel supply will continue to lag behind the pace of fleet transition.

Ship & Bunker News Team
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