Ammonia a top contender to decarbonise shipping – DNV

Ammonia is more scalable as a marine fuel than other alternative fuels such as hydrogen, industry representatives told at a conference organised by DNV.  

PHOTO: 3D model of NYK Line's ammonia bunker vessel. NYK Line

They think that by 2030 there will be more clarity around ammonia bunkering, as engine technologies are expected to mature alongside creation of new supply chains.

Ammonia has been transported as cargo for several years, but it is yet to find space as a marine fuel, said Global Centre for Maritime Decarbonisation (GCMD) chief executive Lynn Loo.

Loo argued that one of the factors that have barred ammonia usage in shipping is the toxicity of the fuel and the risk it poses to seafarers.

Safety risk, high cost and lack of availability are the key barriers that have held back ammonia usage in shipping, argued Woodside Energy’s head of new energy shipping business development Adrian MacMillan.

MacMillan still believes that both ammonia and hydrogen could be the fundamental drivers of shipping decarbonisation.

Ammonia is a strong contender for decarbonisation as it can be scaled and comes at a competitive production cost, said Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping’s head of energy and fuels Torben Nørgaard. He thinks that sufficient ammonia will be available to cater to demand from newbuilds that will be deployed over the coming years.

Nørgaard argued that demand for ammonia could be impacted by misalignment in the market. He said that some shipowners are still investing in newbuilds that can run on carbon-based fuels such as methanol.

Both Loo and Nørgaard foresee that the future will hold a mix of ship types running on various fuels.

Loo said that shipping is a “heterogeneous” sector comprising ships of various sizes, and so the fuel mix will inevitably vary. She expects green ammonia production to increase as demand also rises from other sectors, including power generation. The shipping sector will then stand to benefit from that supply capacity build-up.

GCMD is currently conducting a feasibility study to devise ammonia bunkering safety guidelines in Singapore. The guidelines will then be used for ammonia bunkering trial runs in the port.

By Nithin Chandran

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