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48 min ago 2 min read
Hydrogen groups have joined calls urging European governments to use double-sided auctions to support the early-stages and extended maintenance of a clean shipping fuel market.
A 23-member consortium addressed a signed letter to the European Commission and national governments recommending measures to create an early market through national support and sustain its expansion through EU-level mechanisms.
It comes after the Commission unveiled the Sustainable Transport Investment Plan (STIP) last year, aiming to deploy €2.9bn ($3.37bn) in public funds to stimulate investment in sustainable fuels, including hydrogen-based solutions.
In the short-term the group called for a double-sided auction model to stimulate production and offtake while reducing the cost gap between producers and buyers, accelerating deployment.
These models, like the H2Global auction in Germany, see a government intermediary purchase fuel at higher prices and sell it into the market at the highest possible price, while absorbing the price gap.
“H2Global offers governments a practical tool to act at European level to build resilient, diversified shipping fuel supply chains,” the letter said.
Long-term, it recommended the Commission establish a dedicated entity, funded by EU emissions trading scheme (ETS) revenues, to expand tenders and scale up the market.
Featuring European fuel producers, users, and industrial associations, the group warned that lacking coordinated support risks greater import dependence, weakened competitiveness, delayed decarbonisation, and lagging behind markets like China.
This comes as the bloc begins to trail in global hydrogen deployments while China, according to estimates from the World Bank, holds up 86% of global alkaline electrolyser manufacturing capacity.
If successful, the mechanisms could aid European alignment with the FuelEU Maritime mandates, which require ships to reduce the greenhouse gas intensity of their fuel mix by 2% compared to a 2020 baseline.
Targets become progressively stricter, increasing to a 6% reduction by 2030 and 80% by 2050.
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