Norwegian shipping company GMI Group is proceeding with a fleet of hydrogen-electric bulk carriers designed for coastal freight operations. PowerCell confirmed a follow-up order in October 2026, bringing the total program to 24 marine fuel-cell units with 5.4 MW of combined installed capacity. The first two vessels, each rated at 4,000 deadweight tonnes, are scheduled for delivery in 2027, with two additional 3,000-tonne ships expected in 2029.
A cost analysis comparing hydrogen propulsion with conventional diesel and battery-electric alternatives over a fifteen-year operational period found hydrogen to be the most expensive option by a significant margin. Hydrogen propulsion exceeded conventional diesel costs by 50–58%, according to modeling of two hypothetical 3,000-tonne coastal routes covering 80 and 55 nautical miles. Battery-electric alternatives proved substantially more cost-effective, ranging from €11.64–14.13 million cheaper than the hydrogen vessels even after accounting for approximately €13.1 million in upfront public subsidy support.
The analysis attributes hydrogen’s disadvantage to the inherent energy losses and capital requirements of converting renewable electricity to hydrogen, compressing and storing it, and then reconverting it back to electricity through fuel cells. These additional conversion steps introduce costs that fuel-efficient hull designs and wind-assistance systems cannot offset, particularly on shorter coastal voyages where charging arrangements may be feasible.
Norway is providing substantial public funding for the hydrogen shipping initiative, with Enova awarding approximately €42.9 million for the four vessels, supplemented by additional grants for hydrogen production infrastructure. The analysis emphasizes that while hydrogen may offer advantages for specific coastal services under certain conditions, such applications require direct engineering and commercial comparisons rather than assumption based on the existence of a funded program. The recommendation is that Norway establish requirements for credible battery-electric competitive bids using vessel, charging and energy pricing appropriate to expected service entry dates before making further public commitments to hydrogen coastal freight operations.
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