The future of shipping: Hydrogen powers a zero-emission maritime industry

Posted: February 21, 2025

On May 25, 2023, the first hydrogen-powered inland container ship, H2 Barge 1, set sail in the Rotterdam waters, Netherlands. Retrofitted at Holland Shipyards Group in Werkendam, this hydrogen-electric barge now transports containers for Nike between the Port of Rotterdam, Port of Antwerp, and the distribution center in Meerhout. As a zero-emission vessel, the only substances it emits are humid air and water.

This initiative is part of broader efforts by Future Proof Shipping (FPS) and various European projects aimed at promoting zero-emission transport solutions for inland waterways. It signals a shift toward cleaner maritime operations, though the shipping industry, a lot like aviation, remains one of the most challenging sectors to decarbonize.

The industry, responsible for around 3% of global CO₂ emissions, relies heavily on fossil fuels due to its massive energy demands and long operational ranges. However, unlike aviation, ships have more space to store fuel, making hydrogen’s low volumetric energy density less of a barrier to adoption.

Understanding hydrogen as a fuel  

Hydrogen has long been known for its high energy content per unit of weight. When used in a fuel cell, hydrogen combines with oxygen to produce electricity, with water as the only byproduct. This simple reaction makes hydrogen an attractive option for reducing carbon emissions. Yet, producing and storing hydrogen presents its own set of challenges.

Today, hydrogen is produced in several ways. The most sustainable method is through electrolysis, where electricity—ideally generated from renewable sources—splits water into hydrogen and oxygen. This method, known as green hydrogen, is gaining interest as renewable energy costs drop. According to the International Energy Agency, green hydrogen production could expand significantly over the next decade as renewable energy costs decline. Hydrogen could ramp up from less than 1% of energy used in shipping today to 19% in 2050.

Storage and transportation add another layer of complexity. Compressed or liquefied hydrogen requires specialized infrastructure because its small molecules can easily leak.  

Hydrogen in shipping becomes reality 

Following the launch of H2 Barge 1, a second prototype, H2 Barge 2, completed its first trials in March 2024 and is now operating emission-free along the busy Rhine shipping route between Rotterdam, Netherlands, and Duisburg, Germany.

Originally built as a traditional diesel-powered containership, H2 Barge 2 was stripped of all combustion engines and fossil fuel tanks in 2023 during its retrofit at Holland Shipyards Group in Werkendam. Now, its new propulsion system features six PEM (Proton Exchange Membrane) fuel cell modules, providing a total capacity of 1.2 MW hydrogen storage tanks, battery packs, and an electric drive train installed below deck.

This innovative vessel, with a cargo that can carry the equivalent of 190 20-foot shipping containers and the ability to accommodate a push barge, promises to slash CO₂ emissions by 3,000 tonnes annually.

At the FPS H2 Barge 2 launch event, FPS CEO Richard Klatten said, “We have established something new in the shipping world. This is our first Flagships project and second vessel, and hydrogen is becoming a standard in the industry already, especially in the inland vessel industry. We were the crazy ones who did it. We have established something no one thought possible five years ago.”

While FPS did not disclose details on the technology behind the H2 Barges, he told in an interview after the launch event, “We try to be technically agnostic and constantly aim to find the best solutions for the vessels we are working with.”

One major challenge to overcome is cost. “If you look at sustainability, you must work with vessels that are already in the market—there are 5,000 inland vessels from port of Rotterdam alone. Most of those vessels are privately owned, and a lot of capex is needed,” Klatten said. But he expects more investors to come onboard. 

Hydrogen-powered vessels: The future standard  

No longer confined to a handful of experimental projects, hydrogen-powered shipping is now spreading worldwide. One of the latest projects to hit headlines was developed in Lithuania. Shipbuilders Baltic Workboats Ltd and Western Baltija Shipbuilding recently launched a 42-meter-long hydrogen fuel cell-powered tanker with a 400 m³ capacity (about 1/16th the capacity of the H2 Barge 2) designed to collect ship waste at the Port of Klaipéda. This vessel will feature hydrogen fuel cells and electric propulsion, enabling up to 36 hours of continuous operation in port waters. It is being built with a budget of approximately €11.7 million and is set for delivery in late 2025.

But maritime companies are also investing in commercial passenger vessels. In July, 2024, a 70-foot catamaran, capable of carrying up to 75 passengers, MV Sea Change, began offering free rides between Pier 41 and the downtown San Francisco Ferry Terminal, as part of a six-month pilot program to demonstrate the viability of hydrogen fuel-cell technology in maritime transport.

Sea Change operated on a hydrogen fuel-cell system, producing electricity through an electrochemical reaction of hydrogen and oxygen—emitting only water vapor. Uniquely, some of this water was condensed and remineralized for drinking, making it the only vessel where passengers could "drink the emissions." The ferry had a 250-kilogram hydrogen fuel capacity, allowing it to travel 300 nautical miles and operate for up to two days before refueling.

What’s next for hydrogen in maritime transport?

Hydrogen-powered vessels are still in their early stages of development, and while the fuel itself might be expensive compared to conventional fuels like diesel, technological advancements are driving down the costs. The growing demand for green hydrogen could lead to economies of scale that reduce its price, making it more competitive with fossil fuels.

As technology advances, more hydrogen-powered vessels are hitting the water, proving that clean maritime transport is no longer a distant dream.