Shipping carbon tax could increase H₂ demand

The demand for green hydrogen and its derivatives could increase massively in the coming years if the UN’s International Maritime Organization (IMO) adopts a proposal for a global carbon fuel tax on the shipping industry. Despite the IMO´s ambitious greenhouse-gas emissions reduction plan, the path is not a straight one, given that today’s carbon-rich heavy fuels are much cheaper than cleaner alternatives, such as renewable hydrogen, ammonia and methanol. A revised proposal of a “Fund and Reward” carbon tax submitted by the International Chamber of Shipping might represent an important milestone for the industry.

SOURCE: Hydrogen Insight