A new study from the University of Manchester assesses the potential and challenges of green ammonia adoption in the shipping sector. Green ammonia, already in use within the global fertilizer industry, is being considered as a low-carbon alternative fuel for shipping. However, the study, titled Green Ammonia Adoption in Shipping: Opportunities and Challenges across the Fuel Supply Chain, highlights several obstacles that could affect its feasibility, especially in meeting Paris Agreement timelines.
Key Findings and Challenges
- Opportunities and Progress:
- The shipping industry’s familiarity with ammonia storage and transportation offers an advantage in adopting green ammonia.
- Dual-fuel engines, capable of running on ammonia and conventional fuels, are being integrated into fleets.
- Challenges to Viability and Adoption:
- GHG Emissions:
There are concerns about the release of nitrous oxide (N₂O), a potent greenhouse gas, during ammonia combustion, questioning the fuel’s “green” status. - Toxicity Risks:
Ammonia’s significant toxicity poses risks to mariners and the marine environment, necessitating new safety protocols and regulations. - Economic Barriers:
Competing demand for green ammonia and hydrogen from other sectors adds economic risks, deterring investment in fuel-specific infrastructure. - Lack of Policy Drivers:
The absence of clear policy incentives has slowed the development of the necessary supply chain infrastructure for ammonia, including port storage, handling, and ship design.
- GHG Emissions:
- Infrastructure and Timing Challenges:
- The study points out the difficulty in building a sustainable ammonia supply chain in Paris-compliant timeframes.
- It suggests that shipping must act as a first-mover, despite uncertainty and investment risks, to transition into alternative fuels.
- Recommendations for Emission Reduction:
- The study recommends focusing on complementary emission-reduction strategies:
- Slow steaming (reducing ship speeds)
- Wind propulsion with route optimization
- Efficiency improvements to existing fleets
These measures offer near-term reductions, helping meet IMO 2030 and 2040 targets without complete reliance on liquid fuels.
- The study recommends focusing on complementary emission-reduction strategies:
Context and Industry Response
The report aligns with broader maritime decarbonization efforts, including the Maritime and Port Authority of Singapore’s (MPA) recent announcement to incentivize low- and zero-emission engines. The MPA’s Green Ship Programme (GSP) offers tax concessions for adopting alternative fuels like ammonia, with added incentives for ships achieving carbon intensity targets under IMO regulations.
The adoption of green ammonia will likely depend on how effectively the industry can mitigate the risks identified in the study and develop viable regulations and economic incentives.
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Source: Manifold Times
