China is moving green shipping fuel projects into construction and production faster than Europe, with three operating Chinese plants producing 10 times as much e-fuel as six European facilities combined, according to Transport & Environment.
The organisation’s Shipping E-fuels Observatory identified 15 Chinese projects targeting maritime customers, with potential production of 1.72m tonnes of oil equivalent by 2029.
Three projects are operating in at least the first phase of their development plans, 10 are under construction and two have reached final investment decision.
Eleven projects primarily target shipping and represent estimated production of 1.50m tonnes of oil equivalent.
Four projects also target other industrial customers. E-ammonia accounts for the largest projected volume at 0.95m tonnes of oil equivalent, followed by e-methanol at 0.55m tonnes and e-methane at 0.22m tonnes.
Europe has 69 green hydrogen and e-fuel projects that could supply the maritime sector, with potential output of 4.09m tonnes of oil equivalent by 2033, equivalent to about 14% of European shipping’s fuel requirements.
Only six European plants are operating, while more than 80% of projects have yet to reach final investment decision.
Spain has the largest projected European output at 1.58m tonnes of oil equivalent, followed by Finland with 0.74m tonnes, Denmark with 0.50m tonnes and France with 0.46m tonnes.
“While Europe hesitates, China is actually getting e-fuels off the ground,” said T&E maritime policy manager Constance Dijkstra. The organisation called for financial support to narrow the cost gap with fossil fuels and measures encouraging shipping companies to use European-made e-fuels rather than imported liquefied natural gas or biofuels.
CMB.TECH has agreed to buy green ammonia from CEEC Hydrogen Energy’s Songyuan project in China’s Jilin province. Its first phase is designed to produce about 158,000 tonnes per year.
The China assessment includes projects producing at least 10,000 tonnes per year that are operating, under construction or have reached final investment decision. The European database has no minimum threshold and includes earlier-stage projects.
Transport & Environment, formally the European Federation for Transport and Environment AISBL, is an independent, non-partisan and non-profit organisation focused on transport decarbonisation in Europe.
CMB.TECH is a Belgian shipping group. CEEC Hydrogen Energy is a Chinese energy producer.