Public support for green shipping is spreading across major regions, but governments are taking noticeably different routes to bring low- and zero-emission fuels and vessels into commercial use. The push comes as shipping faces tightening international rules: the International Maritime Organization agreed a revised greenhouse gas strategy in 2023 that targets net-zero emissions from international shipping around 2050, and the European Union has brought maritime emissions into its Emissions Trading System alongside the FuelEU Maritime regulation, which penalises fuels with higher lifecycle greenhouse gas intensity.

Europe: Building the Whole Supply Chain

Several European nations are developing multiple links of the supply chain simultaneously, from fuel production to vessels and bunkering infrastructure.

Germany opened applications this month for the first call under a new inland shipping programme, making up to €70 million ($82 million) available for green inland shipping corridors. The funding covers vessel conversions, renewable hydrogen and electricity production and storage, and charging and alternative-fuel bunkering infrastructure.

Norway's Enova has backed both sides of the supply-demand equation. In June it awarded NOK 344 million ($36 million) to LH2 Shipping for hydrogen-powered vessels, and last December it awarded NOK 442 million ($46 million) to Azane Infrastructure for three ammonia bunker terminals.

The Netherlands is concentrating €103 million ($120 million) of state aid on renewable methanol- and renewable hydrogen-powered newbuilds and retrofits between 2027 and 2031. Finland has moved further upstream, awarding investment tax credits of up to €118.6 million ($138 million) to ETFuels Finland for a planned 110,000 mt/year e-methanol plant, with output intended for shipping and industrial customers.

Asia: Focus on Cleaner Vessels

Two Asian programmes focus more squarely on getting cleaner vessels onto the water.

Japan has opened applications under a five-year, JPY 15.1 billion ($95 million) programme to subsidise equipment for hydrogen-, ammonia-, methanol- and battery-powered ships, with JPY 1.2 billion (around $8 million) budgeted for this year. Hydrogen-, ammonia- and battery-powered vessels can receive support covering up to half of eligible costs, compared with one-third for methanol and hybrid vessels. Oceangoing ships qualify only if they run on hydrogen or ammonia.

Hong Kong has earmarked around HK$34 million (around $4 million) for three-year schemes offering port-dues concessions to vessels powered by, bunkering or transporting approved alternative fuels, alongside incentives for alternative-fuelled ships registered under its flag.

North America: Piecemeal for Now

North American support remains more fragmented, split between individual ports, infrastructure projects and proposed federal funding.

Québec has committed around CAD 5 million ($3.5 million) to install shore power at the Port of Québec.

The Port of Long Beach is offering $1 million to the first oceangoing vessel to bunker methanol on a "commercial scale" at the US port. The port authority estimates that a methanol bunker call currently costs around $1.5 million, compared with roughly $1 million for conventional marine fuels. Half of the award is intended to cover that estimated $500,000 difference, while the remainder would help cover ancillary expenses such as permitting and new operational and safety procedures.

A much larger US intervention has been proposed but has yet to materialise. US representatives Nanette Barragán and Troy Carter, along with senator Chris Van Hollen, reintroduced the Next Generation Shipping Act in June. The bill proposes $1 billion per year for zero-emission-potential vessels, retrofits, research, and clean-fuel and charging infrastructure. "The bill would also help the United States keep up with other countries in Europe and Asia that are already investing heavily in clean shipping technology," the lawmakers wrote in a joint statement.

Egypt: Assessment Without Funding

Other governments have started the groundwork without committing funds. Egyptian authorities have assessed low- and zero-emission fuel production, storage and bunkering potential at five ports under the IMO's GreenVoyage2050 programme. The assessment came with no funding announcement, but the work is intended to identify infrastructure, regulatory and safety requirements and help attract future investment.

Although these regional approaches differ, they increasingly address the same chicken-and-egg problem from different directions. Shipowners are reluctant to invest without affordable fuels and reliable infrastructure, while clean-fuel producers and infrastructure developers need sufficient demand to justify their own investments. Public funding can help break that deadlock by lowering upfront costs and investment risk on both sides until the market can support itself. The spread of these programmes is worth watching over the coming years: whether funded projects in Europe and Asia translate into commercially self-sustaining fuel supply chains will signal how quickly the industry's fuel switch can proceed without continued public support, and whether proposals like the Next Generation Shipping Act advance will shape how competitive US-flagged shipping becomes in that transition.

Other Alt Fuels News This Week

• Nuclear technology company Core Power has signed an agreement with the US Department of Transportation's Maritime Administration (MARAD) to establish a pathway for US-flagged nuclear-powered merchant vessels, with construction of the first ships targeted to begin in 2028.
• Indian state-owned gas utility GAIL, Deendayal Port Authority and classification society DNV have signed an agreement to explore the development of an LNG bunkering facility at Kandla Port.
• The European Commission has approved a joint venture between TotalEnergies and CMA CGM to expand LNG bunkering in the ARA region. TotalEnergies said a new 20,000-cbm LNG bunker vessel will be positioned in Rotterdam by the end of 2028.

Source: By Konica Bhatt, ENGINE,