From the magazine – Inland navigation in Europe can achieve the climate target of zero greenhouse gas emissions in the short term if it is enabled to switch sector-wide to the use of HVO (hydrogen-treated vegetable oil). HVO as a renewable drop-in fuel enables full decarbonisation and can be used immediately in existing and modern internal combustion engines to replace fossil diesel. Moreover, HVO is fully compatible with current refuelling infrastructure.
In every issue of SWZ|Maritime, SWZ|Maritime’s editor-in-chief Antoon Oosting writes an opinion piece under the heading “Markets” about the maritime industry or a particular sector within it. For the April 2025 issue, he goes into the pleas of Europe’s inland navigation sector to make HVO more widely available against a better price to decarbonise the sector. The opinions expressed in this article are those of the author and do not necessarily reflect those of the publisher, the SWZ Foundation, the KNVTS, or other editors.
So says the European inland navigation and port sector in a statement issued earlier this month calling on the European Commission (EC) to include inland navigation in the European maritime/waterborne strategy, port strategy and Sustainable Transport Investment Plan (STIP). The sector thus seeks to garner political and financial support for the switch to HVO. This has so far been hampered by the inability to pass on the higher price of HVO to customers, leading to competitive disadvantages compared to fossil fuel users, read: road transport.
The call is supported by all the main organisations in the European inland navigation and port sector: INE (Inland Navigation Europe), EBU (European Barge Union), EFIP (European Federation of Inland Ports), Waterborne Technology Platform, IWT (European Inland Waterway Platform), ESO-OEB (European Skippers’ Organisation), EICB (Expertise and Innovation Centre for Inland Navigation) and Platina4Action, an organisation for the promotion of European inland navigation.
According to the signatories, inland navigation is a highly competitive, energy-efficient, safe and sustainable alternative to other modes of transport and relieves congestion on roads and railways. ‘Europe’s industrial future and circular economy rely heavily on inland navigation as a carrier of the building blocks of the EU economy, including renewable fuels. Increasing freight volumes on inland waterways can make an important contribution to achieving Europe’s Green Deal policy goals,’ the call said.
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HVO at a competitive price
To reap the benefits and opportunities of HVO in the short term, the industry says it is essential to prioritise support for an annual supply of 1.6 million tonnes of HVO for inland navigation at prices competitive with diesel. This should be supported by a stable EU regulatory framework and coordinated efforts by EU member states. This would provide a viable business case for inland shipping companies and be a major step forward in decarbonising inland shipping, be in line with the Green Deal and support modal shift objectives, the industry said.
The industry notes that creating reliance on HVO as the sole energy source poses potential risks in terms of availability and price volatility. It therefore recommends developing other alternative fuel solutions at the same time, such as battery-electric propulsion, methanol and hydrogen.
The higher cost of these solutions means that regulations and financing are key to implementation, ensuring legal certainty, incentivising investment and expanding renewable fuel supply networks. A stable, technology-neutral regulatory framework combined with incentives for innovation are essential to achieve a fossil-free sector.
In the manifesto submitted with the call, the industry states that the STIP is a key instrument of the Clean Industrial Deal and aims to accelerate the transition to renewable and low-carbon fuels in aviation and shipping. This includes expanding production and distribution of alternative fuels, scaling up refuelling infrastructure and reducing investment risks.
Investigation of transition paths
A comprehensive study commissioned by the Central Commission for the Navigation of the Rhine (CCNR, 2021) investigated transition pathways for achieving (near-)zero-emission technologies, which are essential for achieving ninety per cent emission reductions. Various engine and fuel technologies can contribute to this such as: Stage-V combustion engines (ICE) with renewable diesel (HVO), Stage-V combustion engines (ICE) with liquid bio-methane (LBM), battery-electric power, hydrogen (H2) or methanol (MeOH) as fuel, either in a fuel cell (electric) or applied in internal combustion engines.
According to the report, HVO plays a crucial role in achieving short-term emission reductions, as 99.9 per cent of the fleet still runs on diesel. LBM’s role is rather limited in the short term as only about 25 ships have propulsion systems that can use LBM as a drop-in solution to replace fossil LNG. Moreover, only a handful of pioneering ships are using batteries and hydrogen fuel cell solutions.
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Post-treatment required
HVO and LBM enable the complete fossilisation of inland navigation, but require post-treatment to eliminate residual NOx and PM emissions. Unlike other alternative fuels, HVO and LBM can be integrated into the existing diesel or LNG refuelling infrastructure, enabling a rapid transition.
In contrast, other renewable fuels (such as hydrogen, methanol, ammonia) require new infrastructure, as well as large investments in ships’ propulsion systems. Interchangeable battery containers as an energy carrier can use existing infrastructure of container terminals in Europe.
Ammonia is not included in the CCNR and Province Zuid-Holland (PZH) studies due to safety risks and the lack of technical facilities, making it currently unsuitable as a fuel for inland vessels. However, green ammonia is considered a promising energy carrier in other sectors and could also find its way to inland navigation in the long term, the manifesto says.
Non-diesel fuel is expensive
A 2021 study by TNO and EICB for the Province of South Holland (PZH) compared the total cost of (near-)zero-emission propulsion systems with conventional CCR Stage 2 diesel engines for different ships and routes. The study estimated that using HVO with Stage-V engines in 2030 would cost about fifty per cent more than CCR Stage 2 with fossil diesel, while LBM would be about eighty per cent more expensive. Battery-electric propulsion was about fifty per cent more expensive for short-haul container transport, although the competitive position depends on vessel type and operations.
Hydrogen fuel cells were the most expensive: costs rose 350 to 520 per cent, while hydrogen combustion engines would be 210 to 370 per cent more expensive. Methanol fuel cells were estimated to cost 300 to 450 per cent more, while methanol-fuelled combustion engines seemed more viable at sixty to eighty per cent more than conventional diesel.
However, methanol combustion is facing delays due to regulatory bottlenecks for non-road mobile machinery, in particular due to concerns over formaldehyde emissions. As a result, methanol uptake is likely to be slow, while HVO, if sufficiently available, remains a more cost-efficient and effective alternative. Moreover, methanol requires significant capital investment in storage, fuel systems and new engines.
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Dual-fuel and hybrid solutions
The CCNR research has mainly investigated monofuel applications, but dual-fuel engines and hybrid configurations are already being used in practice and may become more widespread. These improve redundancy and help mitigate risks associated with price and availability volatility.
Dual-fuel and hybrid solutions allow operators to spread financial investments over time. They offer flexibility so that operations can continue even if HVO is not competitively priced or readily available. These factors highlight why a diverse energy transition strategy – combining drop-in renewable fuels, hybrid configurations and other renewable energy carriers – is crucial for achieving cost-effective and sustainable decarbonisation in inland navigation.
Current state of affairs
Almost 12,000 inland vessels operate on European waterways. According to the CCNR study, the number of large and small passenger/cabin vessels and larger motor freighters is growing steadily until 2050. This reflects the economies of scale of larger vessels. Smaller cargo vessels and pusher craft are expected to decline significantly, mainly due to the age of these vessels.
However, fleet renewal through new construction is not going fast enough. Therefore, the biggest progress in decarbonising the fleet must come from retrofitting existing ships with HVO as a drop-in fuel combined with clean engines.
Respond to this article by sending an e-mail to Antoon Oosting, editor-in-chief and author of this article: swz.rotterdam@knvts.nl.
Cartoon by Hans de Wilde/SWZ|Maritime.
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