Norway, Spain, Finland, and Denmark are at the forefront of renewable synthetic fuel production that can be used in maritime transport. However, regulatory uncertainty is holding back most projects in the planning phase, according to Transport & Environment (T&E). The EU should introduce more ambitious rules to boost the sector and create jobs.

A lack of regulatory certainty is preventing most projects from moving beyond the planning stage.

Spain, Denmark, Norway, and France are leading the production of renewable synthetic fuels suitable for maritime transport, according to a new analysis by T&E. However, regulatory uncertainty is stopping most projects from advancing beyond planning. T&E recommends that the EU adopt more ambitious synthetic fuel requirements for the maritime sector to ensure that projects are implemented, which would create jobs and improve Europe’s energy security.

T&E’s 2025 update of its Synthetic Fuels Observatory for Maritime Transport identified 80 green hydrogen and synthetic fuel projects that could be used to power ships, representing over 4 million tonnes of oil equivalent (Mtoe) by 2032. However, T&E found that only 240,000 tonnes of oil equivalent—less than 5%—are allocated to the maritime sector. Only 25% of these projects have reached final investment decision (FID) or are operational, highlighting how regulatory uncertainty is preventing projects from advancing.

Some countries are emerging as potential suppliers of marine synthetic fuels. Norway leads with the largest volumes primarily intended for the maritime sector, followed by Spain, Finland, and Denmark. The Kassø project by European Energy, which supplies e-methanol to Maersk, became operational in 2025 and is both the first marine synthetic fuel project and the largest of its kind in Europe.

The research indicates that the maritime sector is likely the largest potential buyer of e-methanol and e-ammonia. For e-ammonia, for example, maritime transport is cited as a potential customer for double the project volume compared to the fertilizer and chemical industries. Strong demand signals from the maritime sector would provide producers with the crucial assurance of a robust market for renewable fuels.

Bosco Serrano Valverde, head of sustainable fuels at T&E Spain, said: “The largest sustainable maritime project was launched this year. This proves it is possible, but scaling up projects remains a challenge. Current maritime targets are not ambitious enough to attract investor funding. In addition to demand incentives, fuel producers need upfront capital. Developing a strong synthetic fuels sector could reinforce Europe’s industrial leadership and reduce the continent’s dependence on imported fossil fuels.”

Clean technology producers have called on the EU to strengthen support for sustainable fuels for maritime transport in Europe. Among other measures, they have requested that ETS revenues be reinvested in renewable shipping.