Hydrogen – the coolest thing you can put on a ship

Hydrogen (LH2), be it blue, or green, is at the heart of the energy transition talks taking place around the globe, especially as major economies of the world pledge to become net-zero nations.

Building up the hydrogen society has been a hot potato for decades and the switch from coal, fossil fuels, and nuclear power plants to greener solutions, predominantly renewable energy, will not be easy.

Nevertheless, this time around it appears that major strides are being made in speeding up the efforts as the need to build up global economies in the post-pandemic world in a greener way becomes more urgent.

When it comes to shipping there are several pathways being explored at the moment to decarbonize the sector with alternative fuels. Hydrogen has emerged as one of the most promising zero-carbon solutions.

However, as was the case with LNG two decades ago, hydrogen is faced with the chicken and egg dilemma on what should come first: supply or demand.

There are several challenges the sector needs to overcome in order to power ships with hydrogen and transport it.

Namely, in order to carry it on board a vessel, hydrogen needs to be cooled down to – 253°C, making it colder than anything else put on a vessel so far, having in mind that LNG is cooled at -163°C.

This requires substantial ingenuity from the engineering side so as to enable a vessel to store the chemical element safely at such low temperatures while keeping the structural integrity of the tanks and the entire vessel intact.

The maritime industry is proving it can be done.

Japan’s Kawasaki Heavy Industries (KHI) has pioneered the construction of ships capable of transporting hydrogen with the delivery of the Suiso Frontier.

The ship started trading in 2021 and is expected to be the first of many hydrogen carriers Kawasaki wants to build.

The vessel boasts a 1,250 cbm hydrogen carrying capacity and is the world’s largest of its kind. It has a diesel-electric propulsion system and can achieve a speed of 13.0 knots.

The Suiso Frontier is planned to be used as part of a project aimed at the establishment of an international hydrogen energy supply chain in which liquefied hydrogen produced in Australia will be shipped to Japan.

The ship is scheduled to set sail on a demonstration maiden voyage of some 9,000 km from Australia to Japan in the coming months, according to Reuters.

Kawasaki is pushing the envelope further. In May, the shipbuilder won ClassNK design approval for its cargo containment system (CCS) of the world’s largest capacity (40,000 m3 class per tank) developed for use on a large liquefied hydrogen carrier.

The CCS has a high-performance heat insulation system that mitigates boil-off gas (BOG) which occurs in response to heat ingress and is designed to effectively utilize BOG as fuel to power the ship, thus contributing to reduced CO₂ emissions from liquefied hydrogen transport operations.

Classification societies are playing an integral role in making sure the new fuels and technologies are integrated in a safe manner, as there is an increased risk of explosions on board from fuels such as hydrogen or ammonia.

Therefore, collaboration with industry majors in setting up the necessary safety procedures on board to make sure safe use of the new fuels is essential at the moment.

Even though in its early days, the technology to build hydrogen-powered ships is maturing slowly but surely. Engine manufacturers as well as energy companies looking to integrate fuel cells on board ships agree.

Japanese majors KHI, Yanmar Power Technology, and Japan Engine Corporation recently formed a consortium to pursue joint development of hydrogen-fueled marine engines for ocean-going and coastal vessels.

With this move, the trio aims to establish a dominant position in hydrogen engine technologies. But, European engine makers are keeping pace as well.

MAN Energy Solutions expects to have its ammonia-powered engine ready by the end of 2024, while for a hydrogen-powered engine the company expects to see the first pilot application in 2025, and larger demand from the market somewhat later, depending on the availability of the fuel.

“The fuels most affordable to produce, such as hydrogen, are most difficult to store and handle, and the other way around. Therefore, the optimum fuel will very much depend on the vessel,“ Gunnar Stiesch, Senior VP Head of Engineering Engines MAN Energy Solutions SE, said during Hydrogen Blue Talks held as part of Nor-Shipping.

As explained, each vessel that doesn’t call at its homeport on a daily basis will need to prepare for a multi-fuel scenario, and different solutions will be applicable to different vessels and trade routes.

According to Stiesch, ammonia is likely to beat hydrogen on the deep-sea, long-range shipping, with hydrogen becoming more attractive to short-sea, because of the fuel handling complexity.

The key aspect to planning for the future is ensuring a vessel has fuel flexibility, which basically means having dual-fuel capabilities and ensuring a backup fuel option is in place.

Moreover, this flexibility also entails planning for future retrofits, and MAN intends to come out soon with retrofit design solutions, offering owners readiness for certain types of fuel when building their new ships, Stiesch said.

Touching on the issue of flexibility and retrofits of auxiliary engines, especially for smaller vessels, fuel-cells are emerging as the potential solution.

Oslo-based engineering and equipment development company TECO 2030 plans to establish Norway’s first large-scale production of fuel cells, optimized to be the heart of hydrogen-powered ships and other heavy-duty installations. Simultaneously, the company is developing its fuel-cell technology as it seeks to meet the growing demand from the market.

“I believe there will be a huge appetite for hydrogen and it is good to hear predictions that hydrogen will be a major fuel for shipping in the years towards 2050,” Stian Aakre, CEO of Teco 2030, said during the talks.

“You can have very flexible solutions on the same ship, combining new technologies with fossil fuels and conventional technologies, in order to meet different requirements from different sailing areas.”

TECO 2030 is focusing on the development of polymer electrolyte membrane (PEM) type of fuel cells, which are likely to be outmuscled by solid oxide fuel cells (or SOFC) with regard to the uptake by deep-sea shipping due to their greater efficiency and compatibility with more fuels.

However, the jury is still out on whether fuel cells will be able to replace traditional marine engines as the technology still needs to be validated through a 20-30 year life cycle.

The issue of building hydrogen-powered vessels is not just a matter of the construction process and technology itself but making a business model to create the impetus for the transition.

“We believe it is feasible to make vessels using liquid hydrogen as fuel from the technology point of view. We have been very fortunate to be supported by the EU with Horizon 2020 funding for HySHIP and the Norwegian Government supporting the Topeka vessel project. But the main issue, for the time being, is to make a business model, because of the cost,” Steinar Madsen, CEO of Topeka AS, Wilhelmsen Group said while speaking during Hydrogen Blue Talks.

To remind, maritime innovation project HySHIP won €8 million ($9.4 million) in EU funding on the back of the Norwegian government’s strengthened focus on the development and commercialization of hydrogen.

The project embraces 14 European partners collaborating on the design and construction of a new RoRo demonstration vessel running on liquid green hydrogen, as well as the establishment of a viable LH2 supply chain and bunkering platform.

Wilhelmsen would operate the vessel, set to become operational from 2024, distributing LH2 to hydrogen hubs along the Norwegian coast.

The Wilhelmsen-led Topeka project has been awarded $25 million by the Norwegian government-owned organization Enova. It revolves around the construction of two ro-ro vessels that will transport hydrogen to different filling stations where local ferries and other vessels as well as land transport will have hydrogen as a ready-to-use fuel. 

Madsen believes that these demonstration projects are key to prove the concept works. Nevertheless, he also insists that it is very important in the initial stage to cooperate with the energy companies to develop the value chain for the new fuels.

“Therefore, the Topeka vessels are included in a larger project with Equinor and Air Liquide in which these two companies are planning to build a factory for the production of liquid hydrogen. The Topeka vessel will then be fuelled from the factory, and at the same time, serve as part of the distribution network for the factory and transport hydrogen to other ports on the west coast of Norway,” he explained.

Speaking on the commercial impetus for investment in zero-emission ships, Andre Risholm, CEO of Viridis Bulk Carriers, a fairly new market entrant, also from Norway, sees the introduction of a carbon tax as the needed nudge in the right direction.

The company, established in March by Norwegian shipping consultancy Amon Maritime and Navigare Shipping & Logistics and AS Mosvolds Rederi, will specialize in short-sea shipping, powering its ships with green and blue ammonia.

The JV is said to be in discussions with a number of shipyards to order a series of vessels planned for deliveries 2024-2025.

Commenting on the cost premiums for these vessels Risholm said:

“Initially, for the early movers, there will be a slight cost premium, mainly related to the fuel. When you look at vessel Capex, there will probably be slightly higher costs to build the ships. But the ships will feature internal combustion engines, ammonia tank systems, and so on, which are fairly standard components. There will be a cost increase for building these components and using them in a new way for the first time.

“We believe that in time we will also be able to win on price as that will be driven by the cost on carbon increasing.”

Risholm is bullish that a carbon price will be implemented sooner rather than later in a way that really drives the change in the market, bridging the cost gap between fossil and alternative fuels.

Leading industry stakeholders agree this is the only way the market can finally get the incentive to transition toward a decarbonized future.