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Green Ammonia Emerges as a Key Player to Decarbonise Global Shipping

There are no ammonia-powered ships in operation but Hyundai Heavy Industries (HHI), South Korea’s has given the world a glimpse of what an ammonia-fuelled ammonia carrier will look like. And it is not alone, there are projects across the world

How green ammonia can slash fuel needs in shipping by 60%

by Gary Wright
January 15, 2024
in Aviation and Shipping

A new study, published in the journal Environmental Research: Infrastructure and Sustainability claims that by focusing only on the top 10 regional fuel ports, green ammonia could meet the fuel requirements of more than 60% of worldwide shipping

A study by researchers at the University of Oxford found that low-emission green ammonia could be used to meet the fuel demands of over 60% of global shipping.

The production costs of ammonia are comparable to those of very low sulfur fuels. Researchers at the University of Oxford came to the conclusion that the fuel would be a practical way to contribute to the decarbonization of international shipping by 2050. 

By 2050, the switch to a green ammonia fuel supply chain will require about US$ 2 trillion, mostly for supply infrastructure financing. According to the report, Australia has the greatest need for investment to supply the Asian markets.

Ammonia (NH3) is easy to store as a liquid and is able to deliver about half the energy density of common fossil fuels.

The European Maritime Safety Agency sees ammonia as a key part of reducing shipping emissions. It says: “Among the broad spectrum of technologies and fuel solutions ship designers, builders, owners and operators, anhydrous ammonia (NH3) has been identified as a potential long-term fuel that could enter the market relatively quickly and offer a zero, or a near-zero, carbon solution (on a tank-to-wake basis and in some cases on a well-to-wake basis) irrespective of the origin of the fuel.

“While there is little recent marine experience with using ammonia as a fuel – and some of the key machinery technologies (such as engines) are under development – extensive land-based experience with the production and use of ammonia for the petrochemical and fertiliser industries forms a sound basis for increasing its use as a marine fuel.”

It the past the fuel was produced by stripping hydrogen from natural gas using steam and combining the H2 with nitrogen from the air at high pressure and temperatures. This process releases close to two tonnes of CO2 into the atmosphere for every tonne of usable ammonia.

However, the compound can now be made with hydrogen split from water with electricity sourced from renewable sources and then combining it with nitrogen.

According to the Oxford study, US$2 trillion will be needed to transition to a green ammonia fuel supply chain by 2050, primarily to finance supply infrastructure.

Large production clusters are also expected to be located in Chile, which will supply South America; California, which will supply the West Coast of the United States; North-West Africa, which will supply Europe; and the southern Arabian Peninsula, which will supply parts of South Asia and local demand. 

Around 90% of the physical trade in products worldwide is carried out by ships that release harmful emissions and burn heavy fuel oil. This constitutes around 3% of the worldwide output of greenhouse gases (GHGs). Consequently, the International Maritime Organization (IMO) made a commitment in 2018 to decarbonize global shipping with the goal of halving greenhouse gas emissions by 2050.

Read full report Optimal fuel supply of green ammonia to decarbonise global shipping.

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