The Estonian government, in collaboration with local maritime companies, has established the Estonian Marine Greentech & Retrofit Hub to support both domestic and international shipowners in retrofitting vessels to comply with International Maritime Organization (IMO) regulations aimed at achieving net-zero shipping.
The initiative is backed by a €25 million ($28 million) government grant to facilitate the adoption of green technologies in the maritime sector.
The grant, enacted by Estonia’s Minister of Infrastructure, Kuldar Leis, provides subsidies covering 15% to 30% of eligible retrofit costs, up to a maximum of €5 million per project. To qualify for the maximum 30% support rate, vessels must be converted into zero-emission ships.
Eligibility also considers factors such as the ship’s flag state and frequency of visits to Estonian ports.
“Global demand for cleaner maritime transport is growing rapidly. Estonian marine industry companies have the expertise and experience to deliver world-class retrofit services and support shipowners in making their fleets more environmentally friendly,” said Leis.
The Estonian Marine Greentech & Retrofit Hub offers a comprehensive service model, enabling shipowners to complete project planning, green technology selection, installation, and testing in one location.
“Everything can be done in one place: project planning, selection of green technology, installation, and testing,” said Ragmar Saksing, General Manager of the Estonian Maritime Cluster. “Even scientists and students participate in the process. This approach simplifies and accelerates services for foreign clients.”
The hub supports the adoption of technologies such as hybrid engines, exhaust gas cleaning systems, carbon capture technologies, and renewable fuel systems to meet stricter environmental regulations, including those set by the IMO and the EU Emissions Trading System.
Kaupo Läänerand, Deputy Secretary General for Maritime and Water Affairs at the Estonian Ministry of Climate, stated, “By supporting the adoption of innovative technologies, we are helping maritime operators reduce their environmental footprint and prepare for future challenges.”
The initiative follows a 2024 study commissioned by the Estonian Ministry of the Environment to assess port compliance with the EU’s “Fit for 55” climate package and identify optimal locations for retrofit facilities.
The study, conducted by Workboats Consulting, highlighted the global demand for retrofitting and Estonia’s capacity to provide efficient services compared to larger shipyards in Germany or the Netherlands, which often face backlogs.
Estonia has previously allocated €100 million from the NextGenerationEU recovery fund to support green technology startups, reinforcing its commitment to sustainable innovation.
The Estonian Maritime Cluster is an organization that fosters collaboration among maritime industry stakeholders, including companies, research institutions, and public sector entities, to promote innovation and sustainability in Estonia’s maritime sector.