Toxicity and higher cost may limit ammonia-fuelled ship varieties – study

A new report by the European Maritime Safety Agency (EMSA) argues that challenges around ammonia's toxicity and safe handling as a marine fuel could limit its usage to only large vessels.

PHOTO: Model of an ammonia bunker vessel. PaxOcean

While acknowledging ammonia's potential to help decarbonise shipping, the study found it “may prove to be a more appropriate solution for deep-sea cargo ships rather than short-sea, passenger or inland waterway craft.”

Besides, retrofitting an existing ship to run on ammonia will prove more expensive than a newbuild due to structural modifications.

After evaluating different ship types, researchers discovered through modelling that ships fuelled by higher-priced green or blue ammonia will cost 3-3.5 times more to own than ships that run on conventional oil-based fuels.

Without measures to bridge the price gap between conventional and alternative fuels and incentives for shipowners, a transition towards green ammonia is unlikely even in the next decade, EMSA argues.

The report suggests introduction of international or regional policy change to bridge this price gap.

Green ammonia, produced with green hydrogen from water electrolysis using renewable electricity, is widely considered a fuel with considerable potential to cut emissions. Its greenhouse gas emissions (GHG) are around 85% lower than HSFO and MGO, EMSA says.

Currently, there are no large ocean-going ammonia-powered ships sailing, but some consortia have initiated projects to demonstrate ammonia vessels in operation.

By Shilpa Sharma

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