- Ammonia offers a scalable, carbon-free alternative to traditional marine fuels, with rapidly developing infrastructure and regulatory frameworks in place.
- Green corridors and national incentives are accelerating the adoption of ammonia in shipping across key regions.
- Technical challenges related to safety, fuel logistics, and vessel retrofits remain, but are being actively addressed.
- The lifecycle emissions and economic feasibility of the fuel are expected to improve with the growth of low-emission production pathways.
Ammonia is rapidly emerging as a promising alternative fuel for the maritime sector. With zero carbon emissions from tank to wake, it presents a key opportunity in the industry’s drive toward decarbonization. However, its adoption also brings unique challenges related to production, logistics, infrastructure, regulation, and vessel performance. To support stakeholders navigating this transition, the International Bunker Industry Association (IBIA) has released a detailed FAQ covering key aspects of ammonia’s role in shipping.
Bunkering and Supply Chain Logistics for Ammonia in Shipping
How is ammonia produced and transported for maritime use?
Ammonia is primarily manufactured via the Haber-Bosch process, which involves synthesizing nitrogen from the air with hydrogen at high pressures and temperatures, using an iron-based catalyst. While this method is energy-intensive and reliant on gas-based hydrogen, newer approaches—such as hydrogen produced via electrolysis—offer lower-emission alternatives, though not yet at an industrial scale. Most ammonia is consumed in fertilizer production, but facilities near coasts support maritime transport through existing pipelines, trucks, rail, and port-side storage tanks, some of which have a capacity exceeding 60,000 m³.
What does the ammonia bunkering process involve?
Several bunkering methods are being explored for the transportation of ammonia in shipping. These include ship-to-ship and shore-to-ship bunkering at jetty-based locations or anchorages, as well as truck-to-ship delivery. Each option is designed to accommodate ammonia’s unique handling requirements and adapt to varied port infrastructures.
What infrastructure is needed to support ammonia bunkering?
Developing bunkering infrastructure requires careful attention to safety, given the toxic and corrosive nature of ammonia. Equipment must be able to handle low temperatures (-33°C) and withstand atmospheric pressure. Training for operational personnel is essential, alongside transparent safety protocols and coordination with emergency responders. Additionally, insurers need to be involved early in the planning process to assess and mitigate risk at ports and facilities.
What supply chain challenges does ammonia face in shipping?
Ammonia supply chains are currently optimized for the fertilizer and chemical industries. The absence of large-scale bunkering infrastructure, combined with high costs for low-emission ammonia and a limited alignment between production hubs and maritime bunkering sites, presents significant hurdles. These issues mirror those encountered during early LNG fuel development and are expected to be overcome as the market matures and infrastructure expands.
Regulations, Certifications, and Incentives for Ammonia Fuel
What regulations apply to ammonia use as a marine fuel, and how are they evolving?
Although the IGF Code governs the use of gases and low-flashpoint fuels, it currently lacks detailed guidelines for ammonia. Interim guidelines were approved by the IMO’s Maritime Safety Committee in December 2024, with a full review planned for 2027. Under the IGC Code, ammonia’s use as fuel remains restricted, but changes expected in 2026 aim to lift these limits. Early adoption of revised standards could allow ammonia-powered vessels to operate sooner, supporting the IMO’s broader decarbonization goals.
What is the status of ammonia fuel certification?
Several efforts are underway to establish lifecycle-based certification standards for ammonia fuel. The Maritime Book and Claim system is being positioned as a key tool to scale certification across the industry, ensuring transparency in ammonia’s environmental credentials.
Are there government incentives for ammonia adoption in shipping?
Yes, multiple national programs support projects related to ammonia shipping. Norway’s Enova provides grants, Japan funds domestic production of ammonia engines and components, and South Korea’s Export-Import Bank backs the construction of ammonia-fueled vessels.
Green Maritime Corridors Supporting Ammonia Adoption
What are green maritime corridors, and how do they support ammonia use?
These corridors are dedicated shipping routes designed to facilitate zero-emission operations. They ensure the availability of alternative fuels, such as ammonia, at both ends of the trade route, enabling practical use of low-emission vessels.
What advancements have been made in establishing ammonia-focused corridors?
One notable example is the Australia–East Asia corridor, which aims to target ammonia-fueled iron ore transport by 2028, with further expansion by 2050. Infrastructure development in regions such as Singapore and Australia is underway, and globally, more than 44 such initiatives are in progress, many of which prioritize ammonia.
Which regions are leading in the development of green corridors for ammonia vessels?
Key leaders include Singapore, the Netherlands, East Asia, and coastal regions of the U.S. These locations benefit from existing port infrastructure and serve as critical hubs for short- and long-haul shipping routes.
How do these corridors contribute to shipping’s decarbonization?
By aligning infrastructure investment, regulatory support, and industry commitment, green maritime corridors serve as testbeds for ammonia and other low-emission fuels. Their success provides replicable models for global adoption and implementation.
Economic, Operational, and Environmental Impact of Ammonia
What economic advantages does ammonia offer over other fuels?
Ammonia can be produced more cheaply than synthetic hydrocarbons, such as e-methanol or bio-methane, due to the abundance of atmospheric nitrogen. Unlike biofuels, which face supply competition from aviation, ammonia offers a scalable and potentially less competitive alternative for shipping.
What costs should shipowners expect in the first five years?
Initial adoption involves significant capital expenditures, elevated fuel costs, specialized crew training, and increased vessel management expenses.
How does ammonia adoption influence future ship design and retrofits?
Costs vary: newbuild ammonia-fueled ships may be 16% costlier, while retrofits could increase costs by up to 40%. These estimates reflect early-stage technology and infrastructure needs.
What are the operational effects of switching to ammonia fuel?
Ammonia-powered vessels offer comparable energy efficiency but require more frequent refueling due to their lower energy density. Safety systems must accommodate their toxic properties. Engines may need pilot fuels for ignition, with options including biofuel or hydrogen blends. Design adjustments include expanded storage space and enhanced containment systems.
What are the environmental benefits of ammonia fuel in shipping?
Ammonia contains no carbon, so its use eliminates CO₂ emissions and methane slip. Emissions like NOx, N₂O, and ammonia slip can be mitigated with after-treatment systems. As production shifts to greener methods, such as electrolytic hydrogen, ammonia’s lifecycle emissions will significantly decrease, offering a cleaner long-term alternative.
Did you subscribe to our Daily newsletter?
It’s Free! Click here to Subscribe!
Source: IBIA
