The European Commission has approved the Netherlands’ state aid scheme to acquire a fleet of ships running on renewable hydrogen or methanol in shortsea trades amid tightening regulatory requirements, the EU executive said.

The scheme will provide direct grants for purchasing new zero-emission ships and retrofitting existing vessels to run on the two low-carbon fuels renewable methanol or renewable hydrogen, with funding available from 2027 through 2031, according to an EC statement.

The Netherlands will target passenger, cargo and work vessels primarily operating in the shortsea shipping segment, with the EU Emissions Trading System and FuelEU Maritime rules imposing stricter decarbonization requirements on shipping companies, the EC added.

Based on regulatory design, the ETS coverage on maritime transportation has been expanding progressively between 2024 and 2026, while FuelEU requirements are set to tighten at five-year intervals from 2025 through 2050.

The Dutch program could accelerate demand for renewable methanol and green hydrogen as marine fuels in Northwest European waters, particularly in the Amsterdam-Rotterdam-Antwerp hub where short-sea shipping activity is concentrated. Current uptake of alternative marine fuels remains limited due to price premiums over conventional marine gasoil, as well as infrastructure constraints.

Platts, part of S&P Global Energy, assessed the delivered bunker price for low-carbon methanol at $1,263.62/metric ton July 24, equivalent to $58.80/gigajoule. The price for 0.1%-sulfur marine gasoil was $27.90/Gj.

Source: Platts