- Ammonia, while carbon-free and promising for emissions reduction, poses significant safety and cost challenges.
- Limited experience and regulatory gaps increase risks associated with ammonia use in shipping.
- Widespread adoption may require extensive safety measures and cost reductions.
Ammonia holds appeal for the shipping industry as a zero-emission fuel if produced with renewable electricity, reports AJOT.
Safety and Regulatory Hurdles
Safety is a primary concern with ammonia, given its toxicity and lack of regulatory standards in the shipping sector.
“Currently the lack of regulation, experience in use and toxicity of ammonia on board ships constitute major safety deterrents,” said Laure Baratgin, head of commercial operations at mining giant Rio Tinto.
Mining giant Rio Tinto, among other companies, remains cautious, awaiting more robust safety assurances before investing in ammonia-fuelled ships.
“Pending our confidence and that of our partners, industry, and communities, that the risks are sufficiently controlled, we will look to charter ammonia dual-fuel vessels.”
Slow Orders for Ammonia-Powered Vessels
Global shipping companies have ordered only 25 ammonia dual-fuel ships in 2024, trailing far behind LNG and methanol-powered fleets.
Ammonia poses unique dangers during bunkering, as it can cause poisoning and severe physical damage upon exposure.
Extensive Risk Management Required
The Global Centre for Maritime Decarbonisation identified over 400 risks in ammonia bunkering and has developed emergency-release couplings to mitigate leak risks.
Unlike oil spills, ammonia disperses in the air, making spills harder to contain and requiring specialized emergency responses.
“For oil, you see it – it stays there and it spreads out in the water. But ammonia dissipates in air.”
Japan Advances Ammonia Bunkering Technology
Nippon Yusen Kaisha (NYK) has designed equipment specifically to enable safe ammonia bunkering, contributing to the industry’s evolving standards.
“Japan’s Nippon Yusen Kaisha (NYK) has developed equipment specifically for ammonia bunkering.”
Singapore’s Steps Toward Ammonia Standards
As a major bunkering hub, Singapore is exploring ammonia’s viability for power generation and developing safety standards for its use.
“Singapore, the world’s largest ship refueling hub, has shortlisted companies to study the viability of ammonia for power generation and bunkering.”
Cost Barriers Remain High
Ammonia fuel costs currently range between two to four times higher than conventional fuels, with lower energy density requiring increased bunkering frequency. “Powering ships with ammonia can cost two to four times more than with conventional fuels.”
Ammonia engines need more upkeep due to the fuel’s corrosive nature, adding further cost and maintenance burdens.
Long-Term Potential for Ammonia in Shipping
Despite challenges, ammonia could make up about a third of marine fuel by 2050, as forecasted by the American Bureau of Shipping.
“We certainly won’t bring any product to market until we are 100% certain that all risks have been duly managed,” said Kenny MacLean, COO at bunker fuel supplier Peninsula.
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Source: AJOT
