The Future of Hydrogen in the Norwegian Shipping Industry : An exploratory case study of the Norwegian shipping industry and its readiness for hydrogen short-sea vessels
Abstract
With increasing greenhouse gas emissions from the shipping industry there is a need to
find alternative fuels to reach climate targets. Hydrogen as a marine fuel is considered
one of the promising solutions to reduce emissions from the maritime sector. At the same
time, hydrogen technology for maritime application remains novel in Norway. Hence,
the aim of this thesis is to provide valuable knowledge that could be used to facilitate a
transition to hydrogen vessels, and is done with two goals.
The first goal is to provide understanding of important drivers and barriers for the
transition, by using the PESTEL framework to analyse the macro environment in the
sector. The results from the analysis discovered that authorities show commitment to the
transition by establishing strategies and providing subsidies. Also, Norwegian maritime
sector has facilities that could give a competitive advantage in the transition. However,
both the cost of acquiring and operating a hydrogen vessel is substantially larger than
alternative fossil vessels, and is therefore not an economically feasible option. Hence, the
second goal is to analyse how CID can be used by the Norwegian government to reduce
barriers and accelerate deployment of hydrogen vessels.
Although it is unclear if the use of CID is the most appropriate measure, the findings
suggest that issuing CfDs would provide increased incentives for shipowners to invest in
hydrogen vessels. This would also increase development and implementation of hydrogen
technology, which contributes to reduced cost and increased competitiveness with fossil
alternatives.