Singapore ammonia demand could hit 2 million mt in 2035 - GCMD

Ammonia is projected to make up 10% of the total marine fuel bunkered in Singapore by 2035, according to a recent study from a coalition headed up by the Global Centre for Maritime Decarbonisation (GCMD).

PHOTO: Cargo terminal at the Port of Singapore. Getty Images

GCMD still thinks that Singapore's ammonia bunker demand could be capped until around 2035 by factors such as limited ammonia supply chains, lacking infrastructure, high costs and regulatory uncertainties.

Nevertheless, the organisation projects that the port’s ammonia bunker demand could hit 2 million mt/year in an optimistic scenario. But, in order to achieve this ambitious target, authorities and industry players need to adopt ambitious decarbonisation initiatives, it added.

In a pessimistic scenario, GCMD has estimated that Singapore’s ammonia demand will barely touch 400,000 mt/year primarily due to a lack of decarbonisation initiatives. The study also projects that Singapore’s ammonia demand is likely to grow to 50 million mt/year by 2050 - which would equal the port's current conventional bunker demand on a mt basis.

GCMD is pushing for immediate regulations, which it thinks should pave the way for developing ammonia bunker barges, related port infrastructure and fuel storage capacities. By bringing in private sector investments some of these key development issues could be addressed, the study's authors argue.

By Nithin Chandran

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