Unlike cars and trains, ships – especially large cargo vessels – are difficult to electrify and still rely heavily on cheap but polluting fuel oil. To meet the goals of the European Green Deal, the waterborne transport sector must look for alternative ways to decarbonise – including alternative fuels.
While sustainable fuels offer real potential to cut emissions, challenges remain around cost and availability. Progress is underway, with growing efforts to produce renewable hydrogen, bio-based fuels, and synthetic alternatives derived from waste and captured CO₂. These innovations aim to provide cleaner energy options for shipping without compromising performance.
Although decarbonising waterborne transport is complex, momentum is building. Expanding access to viable alternatives will be key to reducing the sector’s reliance on fossil fuels and moving toward a more sustainable future.
Discover project examples
Building on the work of two previous projects, HySeas III looked to show how fuel cells, along with hydrogen storage and bunkering components, can be integrated into a marine electric drive system. The project aimed to convert the energy of the winds, waves and tides around Scotland’s Orkney Islands into stored hydrogen. As a result of the project, marinised fuel cells of 100 kW are now being sold on the market.
EU contribution: €10.8 million
Funding programme: Horizon 2020 - Transport
Lead partner: University of St Andrews (UK)
The FReSME project’s solution starts by capturing the CO2 being emitted at a steel plant. Then, using an emissions-to-liquids methanol production process, this captured carbon is recycled into a sustainably produced methanol fuel that can be used to power ships, including a cargo ship currently operating between Sweden and Germany.
EU contribution: €11.4 million
Funding programme: Horizon 2020 - Energy
Lead partner: I-Deals Innovation & Technology Venturing Services (Spain)
The Poseidon project is developing and testing solutions that will create new value chains – from feedstock to ship engines. In addition to assessing two complementary routes to valorise CO2 from waste streams, the project is developing a power-to-synthetic technology for producing a synthetic methanol.
EU contribution: €11.9 million
Funding programme: Horizon Europe - Energy
Lead partner: Eifer European Institute for Energy Research (Germany)
The project will develop a new hydrogen liquefaction plant in Rjukan (Norway) and will produce renewable LH2 to be transported to a novel bunkering tower deployed in the Port of Oslo. RjukanLH2 will deliver 3 468 tonnes of renewable LH2 fuel annually – enough to power four shortsea container vessels sailing between Oslo and Rotterdam.
EU contribution: €31.5 million
Funding programme: Innovation Fund
Lead partner: Norwegian Hydrogen (Norway)
The project will produce renewable hydrogen by installing a7.5 MW electrolyser at Rypefjorden, near Hammerfest, Northern Norway. Hammerfest H2 aims to become a regional maritime hub, minimising transport needs and enabling direct bunkering. Local demand is estimated to exceed 3.5 kton of RFNBO hydrogen a year.
EU contribution: €21.8 million
Funding programme: Innovation Fund
Lead partner: Green H AS
SEAFAIRER is demonstrating the production of improved intermediate biofuels for ships using waste materials. It converts residues into biochar, oil, and gas, then upgrades them in existing refineries into cleaner fuels. The project will produce over 6,000 litres of blended fuel for a 30-day vessel test in Valencia, Spain.
EU contribution: €10 million
Funding programme: Horizon Europe - Energy
Lead partner: Technical University of Denmark (Denmark)
FUEL-UP aims to produce both Sustainable Aviation Fuels (SAF) and marine fuels from forestry residues using pyrolysis. It will test small batches of these fuels and evaluate their performance in marine engines, comparing results with conventional fuels.
EU contribution: €8.4 million
Funding programme: Horizon Europe - Energy
Lead partner: SINTEF (Norway)
The Apollo project aims to bring ammonia engines to full demonstration for waterborne transport in Norway. It will cut emissions by replacing a conventional engine with a dual fuel Ammonia powered engine. This world’s first will show that such solution can be applied across different ship types in Norway and internationally.
EU contribution: €5 million
Funding programme: Horizon Europe - Mobility
Lead partner: Maritime CleanTech (Norway)