PowerCell and Siemens have signed a Memorandum of Understanding to develop fuel cell-based power systems for use on ships.

The fuel cell developer and technology firm say the equipment could greatly reduce the dependency on fossil fuels in the commercial shipping industry.

The International Maritime Organisation (IMO) has set a target to reduce the emissions from commercial shipping by 50% before 2050, which will require a substantial decrease in the use of fossil fuels.

PowerCell claims its modular and scalable technology, which produces electricity and heat with no emissions other than water. has market-leading power density and safety features.

Global corporation Cargill has launched a competition for companies to find and scale new technologies capable of reducing a ship’s carbon dioxide emissions by 10%.