IRENA and AEA report suggest ammonia bunker demand to surge by 2050

Ammonia usage in shipping is expected to grow multi folds by 2050 due to growing thrust on reducing greenhouse gas emissions, a joint report by the International Renewable Energy Agency (IRENA) and the Ammonia Energy Association (AEA) says.

PHOTO: Bunkering of a bulk carrier. Getty Images

The duo estimate marine fuel demand of ammonia could reach 197 million mt by 2050.

Currently, total ammonia production is around 183 million mt, of which less than 1% is used for international shipping, report says.

The International Maritime Organization (IMO) has set a target of reducing the sector’s emissions 50% by 2050 as compared to 2008 levels.

According to the report, Asia accounts for more than half of the global ammonia production capacity and consumption, where it is used mainly for agriculture related activities.

Other leading consumers of ammonia are North America, Europe, South America, and the Middle East and Africa.