The Norwegian shipping company Norled has invested in the world’s first hydrogen ferry. The ship, christened MF Hydra, began operating in Rogaland, Norway, in March 2023.
In two years, the ferry company has made losses of more than one billion Norwegian kroner (approx. 86 million euros).
According to the annual report, “problems with the introduction of new technology” are one explanation for the ferry company’s large deficit in recent years.
American Clean Technica -web media has published an analysis of Norled’s hydrogen investment and its unprofitability.
Norled relied on hydrogen
Norled once decided to invest in a hydrogen vessel, even though other ferry operators chose electricity. Norled also has electric ferries.
The launch of Hydra received worldwide attention. It was celebrated as proof of the emission-free era of shipping.
The ferry operates a short 15-20 minute Hjelmeland–Nesvik–Skipavik route, which is a typical crossing in the Norwegian ferry network.
At the same time, similar routes elsewhere in Norway were electrified by installing batteries and charging on the beach. About 70 of Norway’s 200 boards are already battery powered.
However, Norled decided to order a customized vessel with cryogenic tanks, fuel cells and a liquid hydrogen refueling system.
The company signed a delivery contract with a German company arise with. Liquid hydrogen is transported by tanker trucks from 1,300 kilometers away to the port every few weeks.
MF Nesvik.
The electric ferry was delivered to Norled in March 2021.
KUVA: Westcon/Økland photo
Comparison with electricity and diesel
According to Clean Technica, the technical implementation of the hydrogen raft is reasonable, but the economic conditions are harsh.
For the sake of comparison, the analysis has calculated estimates for the costs and carbon dioxide emissions of the hydrogen ferry and the corresponding electric and diesel ferry.
The electric ferry MF Nesvik used in the comparison is Hydra’s sister ship, and it operates on the same route.
The figures have been compiled into a table where the price of liquid hydrogen is estimated at 13-14 €/kg, the price of electricity at 0.045-0.09 €/kWh and the price of diesel at 1.5 €/l.
I’m calculating according to Hydra’s carbon dioxide emissions are double compared to a diesel ferry.
This is because liquid hydrogen has to be delivered to the port by diesel trucks. In addition, liquid hydrogen leaks into the atmosphere during deliveries, causing a 13-17 times warming effect compared to carbon dioxide.
However, the biggest source of emissions is the production of hydrogen with German electricity.
Norled does not disclose exact figures
A Norwegian with news on the subject Technical Weekly Magazine (TU) according to the ferry company does not say how much of the deficit the hydrogen investment represents.
Financial manager Toril Ås and Director of Communications Catherine Gjertsen write in an email to TU that both the ferry and the fuel refueling tower have become significantly more expensive than originally planned.
Norled disagrees with Clean Technica’s calculations. They do not take into account the emissions of hydrogen production or delivery.
“If Hydra had operated with diesel, the emissions in 2024 would have been about 1,950 tons higher,” says Norled.
According to the company, the tanker trucks use sustainable fuel, although this is not mentioned in the contract.