How Can Hydrogen Be Introduced in the Maritime Sector?

Details

Supervisors

Blome, Constantin

Faculty

Louvain School of Management

Degree label

Master [120] : ingénieur de gestion, à finalité spécialisée

Abstract

The fight against climate change and air pollution has many fronts and shipping ports is one of them. The fuel oil used in diesel engines on ships is particularly polluting and the sector's GHG emissions account for 2.9% of global emissions. Ships in ports are responsible for one fifth of these emissions. Regulations and incentives from governments and port authorities are forcing shipowners to look at solutions to decarbonise their fleets. According to institutional actors, green hydrogen solutions would have the best prospects as a replacement against traditional fuels. However, the time for long-distance ships powered by fuel cells or hydrogen-powered combustion engines has not yet come. Research and development are still in progress, but improvements in ports can go faster, with innovative technology playing an important part. The object of this Master’s thesis is to look at how hydrogen can be implemented in ports through a specific project: a “Power Barge” which uses hydrogen as a fuel to supply electricity to ships. This project is the property of the Compagnie Maritime Belge (CMB), a major player in the global maritime industry. To assess the feasibility and perspectives of the project, the thesis performs a two-level approach. The financial analysis shows a promising future for this technology. It offers a slightly advantageous cost of electricity production when compared to other sources. The broader approach of a SWOT analysis allows the identification of elements that have an influence on the project. It reinforces the conclusion of the financial approach even if it highlights particularly all the current uncertainties related to the hydrogen production and distribution chain, even more so if it is "green". However, negative elements appear to be strongly offset by the mandatory "zero carbon" objective, the perspective of a relative increase in the price of carbon fuels, the prospect of the availability of green hydrogen, the framework set by the authorities and, above all, the dynamism of the innovation ecosystem supported by the company.