If Estonia could wisely realize the full potential of its offshore wind farms by producing green hydrogen and green fuels based on it, and exporting them to mainland Europe and Scandinavia, it would create thousands of jobs in Estonia, develop offshore wind farm expertise, and lead to a similar boom as Norway experienced during the offshore oil boom. However, to reach this point, some obstacles need to be addressed, says Martin Jõgeva, Head of Research and Development at LTH Baas.

Last year brought many opportunities to Estonia’s maritime sector. While the effects of COVID-19 are still felt by some cruise ship owners, who continue repaying large loans taken during the pandemic, uncertainty about the future has decreased. The number of shipbuilding and ship conversion orders is on the rise, and new inquiries are increasing, likely leading to projects over the next two to three years, as we have seen in our company.

However, like many other sectors, maritime is facing several challenges. One of the biggest issues is the shortage of specialists, along with rising costs, which make project execution more difficult. There is also a great deal of uncertainty regarding the technologies and types of fuels that will be used in shipping in the future.

The International Maritime Organization (IMO) has set an ambitious goal to achieve climate neutrality by 2050. For Estonia, this means we have an opportunity to contribute significantly to new green technologies, but we need a clear strategy and direction to achieve this.

Green transition in the maritime sector

The green transition offers enormous potential for Estonia’s maritime sector, but to capitalize on this, we must focus on technological innovation and new markets. One of the biggest opportunities lies in offshore wind farms. If we can develop solutions for producing green hydrogen and exporting it, it would create thousands of jobs in Estonia and allow us to contribute to the development of Europe’s green technology.

Developing offshore wind farms and hydrogen production could bring about economic growth similar to Norway’s offshore oil boom in the 1970s. This would be a strategic investment in Estonia’s future, offering a competitive edge and strengthening our position in the international maritime market.

“Offshore wind farms and green hydrogen production could be key for Estonia, creating thousands of jobs and strengthening our economy. However, this requires investment in education, research and development, and supporting the growth of specialists.”
Martin Jõgeva, Head of Research and Development at LTH Baas

Estonia’s maritime sector is currently at a crossroads. On one hand, major technological innovations present opportunities, while on the other hand, we need to invest more in research and development to stay competitive internationally. Estonian maritime companies should find their niche, where they can compete with the best in the world. For example, the development of offshore wind farms requires installation and maintenance ships, which opens up new business opportunities for our shipbuilding sector.

Extensive digitalization in shipping also offers great opportunities for Estonia’s IT sector. The development of digitalization and automation could be an area where Estonian companies provide world-class solutions.

The growing role of education and intellectual property

For Estonia’s maritime sector to fully capitalize on new opportunities, we need to invest in education and specialist training. Unfortunately, maritime and shipbuilding fields are not currently among the most popular in Estonia, making it essential to raise awareness and showcase the sector’s diversity to young people. At Tallinn University of Technology, the two least popular fields this year were marine engineering and small craft construction, indicating the need for extensive outreach.

LTH Baas has been supporting shipbuilding education for years, offering students internships that demonstrate the practical and exciting challenges of the sector, as well as the opportunity to see the world. To foster innovation, the state must focus on education and create conditions for Estonians to stay in Estonia or return after gaining education and work experience abroad. Unfortunately, change doesn’t happen overnight, and in the short term, we should also encourage attracting top foreign specialists to Estonia to fill the current knowledge and skills gap.

For Estonia to maintain and grow its competitiveness in the maritime sector, a national strategy is necessary. The key to success lies in collaboration between educational institutions, private companies, and the public sector. We should also support innovation and creativity by offering opportunities for companies and researchers to test and develop new solutions.

Potential to become a leader in maritime innovation

Our small size and digital capabilities give us flexibility and speed in international competition. Estonia has the potential to become a leader in maritime innovation if we can find our niches and focus on new markets and opportunities, such as offshore wind farms and digitalization. It is also essential that the national strategy supports research and development, as well as the growth of skilled professionals, to ensure Estonia remains competitive in the long term.

Estonia’s maritime sector has significant opportunities ahead, but to take advantage of them, we need a clear vision and strong cooperation. Offshore wind farms and green hydrogen production could be key for Estonia, creating thousands of jobs and strengthening our economy. However, this requires investment in education, research and development, and supporting the growth of specialists. The future of Estonia’s maritime sector depends on our ability to adapt to changes and seize emerging opportunities.

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