Maritime Trade Association: An Urgent Need for New Ships to Meet Global Hydrogen Demand by 2050
The International Chamber of Shipping (ICS) has issued a new report on the expansion in the global shipping fleet for hydrogen, warning that current shipping is just 5% of the world’s hydrogen demand.
Currently, the global fleet includes 443 ships capable of transporting ammonia, a common hydrogen carrier. However, the report estimates that an additional 457 hydrogen carriers would need to be built to satisfy the expected demand from Japan and South Korea alone by 2050.
This figure could rise even further if ammonia is used as the transport medium due to its approximately 10% lower energy density than hydrogen
At present, the Suiso Frontier remains the only liquid hydrogen carrier in operation, with many other designs still awaiting approval.
The challenges of transporting hydrogen, particularly the need for cryogenic tanks to maintain the extremely low temperatures required for liquid hydrogen (minus 253 °C), add to the high costs of overseas transport.
This report outlines that Japan and South Korea anchored their future energy strategies on hydrogen imports facing significant hurdles in meeting their domestic production targets
Japan is projected to produce just four million tonnes of hydrogen annually by 2050, while South Korea’s production will require the installation of 203-266 GW of electrolyser capacity and a substantial increase in electricity generation, far exceeding current levels.
To meet the combined five million tonnes of hydrogen demand expected from Japan and South Korea by 2030, this report calculates that 70 new hydrogen carriers will be needed. Even if the European Union were to import its targeted 20 million tonnes of renewable hydrogen by 2030 from India, an additional 300 hydrogen carriers would be required.
The ICS report also highlights the broader implications for the global hydrogen market, noting that Japan and South Korea’s combined demand will represent just 5% of the global market by 2050
Nonetheless, fulfilling this demand with renewable hydrogen would require an amount of electricity equivalent to the total generation capacity of South and Central America, alongside the construction of between 283 GW and 481 GW of electrolyser capacity.
Despite these challenges, the report indicates that global electrolyser manufacturing capacity is currently at nearly 8 GW per year and could expand to 60 GW annually with announced factory expansions.
This potential growth means the electrolysis capacity could be manufactured within four to eight years to meet Japan’s and South Korea’s hydrogen needs by 2050, provided the necessary infrastructure is developed.
The ICS emphasises that global hydrogen demand will likely be driven by industrial applications, particularly in emerging sectors like green steelmaking, the maritime and aviation industries will also play a crucial role, albeit representing a smaller share of the overall market.
There is an urgent need for strategic planning and investments in the maritime sector to support the global transition to a hydrogen-based economy, ensuring that the necessary infrastructure is in place to meet future demand and contribute to global decarbonisation efforts.
