Norwegian shipping company GMI Group is advancing a four-vessel program for hydrogen-electric bulk carriers serving coastal freight. PowerCell said in October 2026 that a follow-up order had brought the project to 24 marine fuel-cell units, with combined installed capacity of 5.4 megawatts.
The first two vessels are planned as 4,000-deadweight-tonne ships for delivery in 2027. Two additional vessels, each rated at 3,000 tonnes, are expected in 2029. GMI says its design could achieve lifetime costs 9–10% below those of conventional ships by combining fuel cells, batteries, an efficient hull and wind assistance.
A separate modeling exercise examined two hypothetical 3,000-tonne coastal bulk services covering 80 and 55 nautical miles. Using comparable hull performance and operating requirements, it found that hydrogen propulsion was 50–58% more expensive than conventional diesel over 15 years, even after assuming approximately €13.1 million in upfront public support.
In the modeled scenarios, battery-electric vessels were €11.64 million to €14.13 million cheaper than the subsidized hydrogen ships. The analysis stressed that these results are scenarios rather than estimates of GMI’s actual contracts, since the company has not published the route and commercial information needed for a direct comparison.
Battery-electric propulsion was not the cheapest option under every assumption. In the central cases, batteries cost somewhat more than diesel over the 15-year period, but their cost gap with conventional operation was considerably smaller than hydrogen’s. Battery vessels would also depend on suitable grid connections, charging equipment and sufficient berth time, conditions that may not be available at every Norwegian port.
Hydrogen vessels face different infrastructure and energy requirements. Renewable electricity must be used to produce hydrogen, which then has to be compressed, stored, delivered to the ship and converted back into electricity through fuel cells. The associated energy losses and capital costs can be significant on short coastal routes, particularly where practical battery charging is possible.
Public funding is an important part of the Norwegian project. Norsk Hydrogenforum reports Enova awards totaling approximately €42.9 million for the four vessels, while additional public support has been awarded to GreenH hydrogen production projects. The analysis notes that announced grants may not all be fully paid and that subsidies shift costs between parties rather than removing the equipment and energy requirements.
The comparison does not rule out hydrogen for every coastal service. Longer voyages, limited charging access or insufficient berth time could favor hydrogen in some cases. However, the analysis argues that those conditions should be demonstrated through detailed engineering and commercial comparisons rather than inferred from a funded shipbuilding program.
It recommends that Norway require credible battery-electric bids, using vessel, charging and energy prices appropriate to the expected entry-into-service dates, before making further public commitments to compressed-hydrogen coastal freight.
Sources: CleanTechnica.