Europe risks falling behind China in the production of green marine fuels unless more e-fuel projects progress beyond the planning phase, according to environmental group Transport & Environment (T&E).
In a press release issued Thursday, T&E said Europe currently has 69 e-fuel projects capable of supplying the maritime sector, but only six of these are actually operational. This is despite the introduction of the FuelEU Maritime regulation, which was designed to encourage a shift toward cleaner marine fuels.
Scale and Pipeline
According to T&E, if every planned project in Europe were completed, they could collectively produce up to 4.09 million tonnes of oil equivalent (Mtoe) of e-fuels annually by 2033. That volume would be sufficient to cover roughly 14% of European shipping’s total fuel demand.
T&E identified Spain as the leader in Europe’s e-fuel project pipeline, with Denmark, Finland and France following behind.
China’s Faster Scale-Up
While China has fewer operational e-fuel projects—just three, according to T&E—the group noted that these facilities produce approximately ten times more output than Europe’s operational plants combined. This has allowed China to scale up its production capacity at a significantly faster pace than Europe, T&E said.
The organization cautioned that without stronger financial backing and supportive policy measures from European governments, the region could become increasingly dependent on imported e-fuels rather than developing its own domestic supply chain.
Industry Reaction
Constance Dijkstra, maritime policy manager at T&E, was quoted saying: “While Europe hesitates, China is actually getting e-fuels off the ground. If Europe wants to be a leading e-fuels producer, it needs to bridge the price gap between EU-made e-fuels and fossil fuels, and get shipping companies to start using those fuels instead of defaulting to imported LNG or biofuels.”
Does This Matter to You?
The pace of e-fuel development in Europe versus China carries implications for future fuel availability and pricing in the bunkering market. If Europe’s domestic e-fuel production continues to lag, shipping companies operating in or through European waters may find themselves more reliant on imported e-fuels, LNG, or biofuels to meet compliance requirements under regulations such as FuelEU Maritime.
This dynamic could influence fuel procurement strategies for vessel operators and charterers navigating European emissions rules, as well as bunker traders monitoring supply chain developments for alternative fuels. The price gap between EU-produced e-fuels and conventional fossil fuels, as highlighted by T&E, may also affect cost calculations for compliance planning in the years ahead.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: Ship & Bunker (via Transport & Environment press release)
