- The IMO is discussing greenhouse gas emission rules for the maritime sector, with measures potentially coming into effect by 2027.
- Experience in ammonia bunkering is growing, with trials in Singapore, China, and Australia.
- Ammonia demand as a maritime fuel could reach 14 million mt/year by 2027.
The International Maritime Organization (IMO) is progressing toward establishing rules on greenhouse gas emissions for the maritime sector, with market-based measures (MBM) potentially approved by 2025 and implemented by 2027. These measures are expected to accelerate the adoption of alternative fuels, including ammonia, reports SP Global.
IMO’s Greenhouse Gas Rules
An interim meeting of the IMO’s Maritime Environmental Protection Committee (MEPC) in February will review proposals for mid-term MBM.
Agreement on these measures could act as a catalyst for alternative fuel adoption by defining the economic framework for greenhouse gas reduction.
The Rise of Ammonia as a Maritime Fuel
The adoption of ammonia as a maritime fuel hinges on its cost and availability.
IMO issued interim guidelines for ammonia use in late 2024. Two-stroke ammonia-capable engines from major manufacturers are expected by 2025.
Trials in Singapore, China, and Australia throughout 2024 have bolstered technical and operational knowledge in ammonia bunkering.
Challenges in Ammonia Bunkering
Ammonia’s toxic and corrosive nature necessitates purpose-built bunkering vessels and specialized crews, increasing costs. However, these costs might decline as production capacity scales up and infrastructure improves.
Guidelines for ammonia bunkering from regulatory authorities in Japan and Singapore are anticipated by the end of 2025.
Future Demand and Scaling Up
Ammonia bunkering demand could reach 14 million mt/year by 2027, though actual use may vary depending on operational choices between diesel and ammonia modes.
Investments in ammonia production and storage infrastructure are expected to lower costs and drive adoption in the maritime sector.
Global Outlook on Ammonia Adoption
Ammonia’s potential as a low-carbon maritime fuel aligns with its growing role in power generation and as a hydrogen carrier.
Industry stakeholders anticipate that increased production and economies of scale will encourage broader adoption, reinforcing ammonia’s role in maritime decarbonization.
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Source: SP Global
