Giant trader and shipowner Trafigura is teaming up with a Swiss technology company to develop hydrogen fuel cells.
The company said it was investing an initial $62m in H2 Energy Holdings to allow it to move forward with decarbonisation solutions for sea and land.
H2 Energy was set up in 2014 to develop hydrogen fuels from renewable sources.
The company is already working with industrial players like Hyundai, Alpiq and Linde for truck operations.
H2 will have $20m of the Trafigura money available as a cash injection to help it with the production, storage and distribution of green hydrogen.
The remaining part of the investment will be provided to seed and fund the development of a 50/50 joint venture based in Zurich that will roll out "green hydrogen-based ecosystems" and finance hydrogen infrastructure projects across Europe.
Europe-wide scale
"The common goal is to decarbonise various sectors with a commercial focus. The joint venture with Trafigura will enable the partners to execute on planned projects on a Europe-wide scale," H2 chairman Rolf Huber said.
"In addition, it will allow us to further develop fuel cell applications for the transport sector on land and water, but also for stationary applications."
Trafigura chief executive Jeremy Weir said the investment has enormous potential at a time when the economics for green hydrogen-powered trucks is becoming competitive.
"We're hugely impressed with the passion, talent and achievements of the H2 Energy team. They’ve developed a successful business model that is present in each part of the hydrogen value chain from green production to logistics and created demand for hydrogen by providing large scale fuel cell solutions," he said.
Trafigura hopes to use its supply chain expertise to develop new markets.
A spokeswoman told TradeWinds: "With this investment/JV, the focus would be more on barges and pushers, so for ports and inland waterways rather than for long haul vessels."
Momentum growing
Shipping is increasingly embracing hydrogen as one solution to its carbon emissions problem.
Three hydrogen newbuildings have already been contracted, according to UK shipbroker Clarksons.
DFDS is developing a hydrogen fuelled ferry, while Norway's Havyard Group has pledged to unveil a fuel-cell system for shipping next year.
Norway's Teco 2030 is also working on its own fuel cell, while shipowner Hoegh LNG is looking at how its gas carriers can store and transport hydrogen.
