SOFC Maritime Applications, 3 Divergent Pathways, 12 Pilot Projects, and $5 B in CCUS Market Growth (2021 to 2026)

Maritime Decarbonization: 3 Competing Hydrogen Pathways Signal Strategic Fragmentation

The maritime industry is not coalescing around a single hydrogen solution but is actively pursuing three distinct and competing applications for fuel cells: primary propulsion, port-based auxiliary power, and onboard carbon capture (OCCS). This strategic fragmentation reflects deep uncertainty over fuel costs, infrastructure availability, and technology maturity, forcing shipping lines to adopt a portfolio approach to risk management and regulatory compliance. Rather than a unified transition, the market is breaking into niches defined by vessel type, operational route, and regional regulations.

• Between 2021 and 2024, industry focus was on ambitious primary propulsion pilots, exemplified by projects like the ‘Sea Change’ passenger ferry and collaborations between Chevron and Caterpillar. These efforts highlighted foundational challenges, particularly fuel storage and the high cost of green hydrogen.
• Starting in 2025, the strategy has shifted toward more pragmatic and immediately deployable solutions. Investment is now accelerating into port power to meet local emissions rules and OCCS to extend the life of the existing fossil-fueled fleet, as demonstrated by early movers like Carbon Ridge and Seabound.
• The emergence of OCCS as a viable pathway creates a new dynamic. Instead of a direct switch to hydrogen, companies are using fuel cells, particularly high-temperature Solid Oxide Fuel Cells (SOFCs), to efficiently power capture systems. This allows continued use of conventional fuels while meeting new emissions mandates from the EU ETS.
• This tripartite strategy signals that the industry is de-risking its decarbonization roadmap. Port power offers immediate emissions reductions with localized infrastructure, OCCS provides a compliance bridge for long-haul vessels, and full hydrogen propulsion remains a long-term goal for specific, short-sea routes.

$5.3 B in CCUS Market Growth, NEOM Green Hydrogen Project and a Maersk Offtake Deal

Financial flows are mirroring the industry’s fragmented technology strategy, with significant capital directed toward both long-term hydrogen supply and near-term compliance solutions like carbon capture. While venture and pilot-scale funding characterized the 2021-2024 period, the market is now seeing larger, strategic investments aimed at building entire value chains, from hydrogen production to its use in derivative fuels and capture technologies.

• The global Carbon Capture, Utilization, and Storage (CCUS) market is projected to grow from USD 5.30 billion in 2025 to USD 30.7 billion by 2035, creating a strong economic driver for OCCS development as a maritime compliance tool.
• Major capital projects are focused on securing future fuel supply. The NEOM Green Hydrogen Company secured financing in 2023 for a massive green hydrogen facility, supported by a 30-year exclusive offtake agreement with Air Products for all green ammonia produced.
• Large fleet operators are underwriting the market for hydrogen-derived fuels. In March 2022, A.P. Moller – Maersk signed a major agreement with Ørsted to offtake 300, 000 tonnes of e-methanol annually, securing fuel for its next generation of vessels.

Table: Strategic Hydrogen Investments and Market Projections

Maritime Alliances: 4 Key Partnerships from CMB.TECH, Chevron, and Nat Power H (2021-2026)

Strategic partnerships are the primary mechanism for de-risking new technology and building the nascent hydrogen value chain. Early collaborations (2021-2024) focused on technology demonstration, while more recent alliances (2025-2026) are shifting toward commercial deployment and securing regional market access.

• In May 2025, Nat Power H and Hy Naval signed an Mo U to develop hydrogen solutions for France’s maritime sector, signaling a move to establish regional hydrogen ecosystems.
• Niche vessel applications are being commercialized through targeted partnerships. In May 2024, CMB.TECH and shipbuilder Damen agreed to build four hydrogen-powered tugs, applying the technology to the well-defined harbor vessel segment.
• Energy majors and equipment manufacturers continue to collaborate on foundational technology. A September 2021 agreement between Chevron and Caterpillar aims to demonstrate hydrogen’s use in marine engines and power systems.
• Infrastructure development is being driven by consortia. A July 2022 partnership between Shell, Engie, Anthony Veder, and Vopak was formed to develop a liquid hydrogen shipping corridor between Portugal and the Netherlands.

Table: Key Maritime Hydrogen Technology Partnerships

EU vs. Asia: Regulatory Pressure and Shipbuilding Capacity Shape Regional Hydrogen Adoption

The global adoption of maritime hydrogen is not uniform, with distinct regional drivers creating different market priorities. Europe is leading on regulatory-driven applications like port power, while Asia is leveraging its shipbuilding dominance to advance new vessel designs and pilot projects.

Carbon Pricing’s Impact on Maritime Fuels

This chart illustrates the economic principle behind the EU’s regulatory pressure mentioned in the section, showing how carbon pricing directly impacts fuel choice.

(Source: CleanTechnica)

• Europe’s approach is defined by its strong regulatory framework. The inclusion of shipping in the EU Emissions Trading System (ETS) in 2024 and the Fuel EU Maritime initiative’s mandate for shore power use from 2030 are forcing immediate investment in port power and OCCS to avoid financial penalties. This is driving activity at major ports and creating demand for services from lines like MSC Group.
• In North America, early adoption is visible in niche passenger segments, with projects like the ‘Sea Change’ hydrogen ferry in the U.S. market. The region’s growth is projected at a 52.8% CAGR through 2036, with fuel cells expected to be the dominant technology.
• Asia’s activity is centered on technology development and shipbuilding. An Indian shipbuilder, Garden Reach Shipbuilders & Engineers Ltd., is developing a hydrogen fuel-cell vessel, positioning the country as a future technology provider. This complements the region’s existing strength in constructing advanced dual-fuel vessels.

SOFC Technology Status: Port Power Nears Commercial Scale, Propulsion Stays in Pilot Phase

The three hydrogen pathways are at vastly different stages of technological maturity, with port power being the most commercially ready solution. While all applications leverage fuel cells, their integration challenges and infrastructure requirements dictate their near-term viability. Technology providers like Bloom Energy are established in stationary power, while companies like Doosan Fuel Cell are developing advanced marine systems.

Passenger Vessels Dominate Hydrogen Pilot Projects

This chart provides specific data supporting the section’s point that hydrogen propulsion remains in a “pilot phase,” showing which vessel types are being tested.

(Source: ScienceDirect.com)

• Port Power (TRL 7-9): This is the most mature application. Using fuel cells for auxiliary power at berth is a low-risk extension of proven stationary power technology. The primary challenge is not technological but economic, related to the cost of hydrogen versus grid electricity or diesel.
• Onboard Carbon Capture (TRL 3-5): OCCS is an emerging technology rapidly moving from concept to pilots between 2021 and 2025. The key innovation is integrating high-temperature SOFCs to provide power and heat for the capture process, which drastically improves efficiency. The deployment of the first centrifugal OCCS system in July 2025 by Carbon Ridge marks a key validation point, though offloading infrastructure for captured CO₂ remains a major hurdle.
• Primary Propulsion (TRL 5-7): Using hydrogen for main propulsion remains the least mature application for large vessels. Technical and safety challenges related to storing large volumes of cryogenic liquid hydrogen onboard, coupled with the complete lack of global bunkering infrastructure, limit its application to smaller vessels on fixed routes. A 2023 study placed the CAPEX for a sample PEMFC system at USD 1.3 million, highlighting the significant cost barrier.

SWOT Analysis: Key Strengths and Infrastructure Weaknesses in Maritime Hydrogen (2021-2026)

The strategic outlook for maritime hydrogen is shaped by the technology’s inherent strengths in achieving zero emissions and the immense external weaknesses related to cost and infrastructure. The transition from 2021 to 2026 shows that while technology is advancing, the structural market challenges remain largely unresolved.

Table: SWOT Analysis for Maritime Hydrogen Fuel Cell Applications

2026 Scenario: Port Power Scales While OCCS Becomes the Key Compliance Tool

The most critical expectation for the next year is the accelerated commercial scaling of both port power solutions and onboard carbon capture systems, driven almost entirely by the EU’s regulatory regime. Pure hydrogen propulsion will continue to advance in niche pilot projects but will not see widespread adoption. This bifurcated market development is the most important signal for investors and strategists.

Evaluating Onboard Carbon Capture’s Effectiveness

This diagram directly illustrates OCCS, a key compliance tool discussed in the section, and provides critical context on its low net-CO2 reduction.

(Source: CleanTechnica)

• If this happens: The EU ETS requires shipping companies to surrender allowances for 100% of their emissions on EU-related voyages by 2026.
• Watch this: The price of EU carbon allowances (EUAs) and the deployment rate of mobile shore power barges and containerized OCCS units at major European ports like Rotterdam and Antwerp.
• These could be happening: A surge in orders for retrofit OCCS systems for the existing tanker and container fleet, and a rapid increase in partnerships between port authorities and fuel cell providers like Powercell Group to meet the 2030 shore power mandate.

The questions your competitors are already asking

This report covers one angle of the strategic fragmentation in maritime hydrogen applications. The questions that matter most depend on your work.

• How does using SOFCs for onboard carbon capture compare to direct hydrogen propulsion in terms of cost, infrastructure needs, and meeting EU ETS mandates?
• Which major shipping lines are adopting onboard carbon capture systems versus betting on future green hydrogen availability for propulsion?
• What is the outlook for the onboard carbon capture (OCCS) market, and is it a better investment focus than green hydrogen infrastructure for the shipping sector?

This report does not answer these. Enki Brief Pro does.

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