Equinor and Air Liquide permanently scrap landmark liquified hydrogen shipping project after failing to attract customers in two years
Partners on Aurora project in Norway say more government support schemes are needed before shipping companies can afford to use H2 as a fuel
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But in 2022 the three project partners — Norwegian oil giant Equinor, French industrial gases firm Air Liquide and Norwegian power company Eviny (formerly known as BKK) — agreed to “stop the Aurora project in its original form”.
Now, the project has been permanently scrapped.
This is because it failed to attract sufficient purchases of green liquid hydrogen, which was due to its high price, according to an Eviny press release.
“In order to be able to make an investment decision, the parties are dependent on a minimum volume for the production facility,” it said.
“With today's framework conditions, the additional cost of choosing hydrogen compared to marine diesel is too high for many shipping companies.
“The parties in the Aurora project believe there is a need for further support schemes for hydrogen production in the form of contracts for difference to make hydrogen available at a price the end user can pay.”
“Liquid hydrogen is expected to be a key contributor on the shipping industry’s path towards decarbonization,” it added. “Projects for hydrogen operation are currently underway within cruise ships, cargo ships, offshore vessels and ferries.”
And Steinar Eikaas, cive-president for low-carbon solutions at Equinor stated at the time: “Aurora is an important step on the journey towards decarbonising the maritime shipping sector and Equinor is playing an important role both in the production of renewable liquid hydrogen as well as in stimulating the market for zero-emission shipping fuels by shifting cargoes from road-based transport to the Topeka base-to-base vessels.”
“The industry players still aim to make liquid hydrogen available for commercial shipping,” the Eviny press release states.