Ammonia has emerged as a frontrunner in the future fuels debate for decarbonising shipping with supporters buoyed by its readiness in comparison with other alternative fuels and its near-to-zero carbon count. But toxicity risks mean that ammonia isn’t a clean swap in for today’s carbon-heavy fuels.

Recognising ammonia’s potential, the European Maritime Safety Agency (EMSA) has published a study into the ‘Potential of Ammonia as Fuel in Shipping’ balancing the pros against the cons.

EMSA points to the “extensive land-based experience” with the production and use of ammonia for the petrochemical and fertiliser industries as a good foundation for its use as a marine fuel, while the requirements for storage, distribution, and personal protective equipment related to the carriage of ammonia in the IGC Code deliver some of the necessary statutory requirements to guide its use in ammonia-fuelled ships. It describes the toxicity challenges and related risks as “significant” yet “manageable”, noting that they will add complexity to ship designs.

Naturally carbon-free, it can drastically reduce the GHG emissions on a well-to-wake basis, provided it is produced using sustainable energy sources,” EMSA said. “However, there are still barriers which the industry, engine manufacturers, producers and other industry segments, as well as policy makers and regulators, need to address in a collaboratively manner.

Into the unknown

The main issue is that despite experience in its handling for land use, there is little knowledge on using ammonia as a marine fuel. As it is both toxic and corrosive, there are some understandable concerns on its use onboard ships and in ship’s engines. EMSA noted that more work needs to be done on understanding those risks and how to mitigate them, and that shipping-focused guidelines and regulations are urgently needed on the handling and use of ammonia as a marine fuel.

EMSA stressed that current regulations on fuels cannot easily be transferred to ammonia.

“For these regulations to be developed, it is relevant that further analysis, investigations, and developments be made to better understand and tackle the safety concerns relating to usage of ammonia as a fuel. The knowledge needs to increase and to be shared with all stakeholders: legislators, class societies, owners, engine makers, equipment providers, operators, port authorities, etc,” said the report.

The IMO is currently developing guidelines for the use of alternative fuels, including ammonia. Those guidelines are being developed in a correspondence group that will report to the next session of the IMO’s Sub-Committee on Carriage of Cargoes and Containers in 2023.

In tandem with this, EMSA called for development of “relevant effective and clear decarbonisation policies” to encourage the use of green fuels, without which green ammonia may not be commercially competitive. “Indeed, without further market demand for green transportation or implementation of market-based measures, the use of green ammonia as a fuel may remain very onerous,” EMSA noted.

The report notes that the introduction of regional market-based measures, for example, the EU’s Fit for 55 scheme, provide a springboard for the promotion of ammonia as a fuel. But it stresses that international rather than regional policies are needed if the uptake of ammonia as a fuel is to be successful in the global shipping industry.

The report also notes that competing sectors will make the development of sufficient green ammonia – which leans on a dependable supply of green electricity – challenging. Industrial sectors are expected to carve out a large share of the available green ammonia supply, leaving shipping to fight for what’s left. “Even if ammonia is made available at large scale, shipping will be competing with other industry segments, either those currently already using widely ammonia (e.g., fertiliser industry) or those that see it as a hydrogen carrier.”

Ammonia projects increasing

Shipping-related announcements on ammonia are coming thick and fast. Finnish shipping company Meriaura, engine maker Wärtsilä, and Green NortH2 Energy recently signed a Letter of Intent for building a cargo vessel that runs on green ammonia. Delivery of the vessel is scheduled for 2024 and it is planned to start operating on green ammonia in 2026. Meanwhile, the world’s first hydrogen-powered cargo ship and the first hydrogen-powered tug are scheduled to be put into operation within the next couple of years and the world’s first liquid hydrogen-powered ferry MF Hydra was delivered to its owner Norwegian ferry operator Norled earlier this year.

The EMSA study concludes that ammonia as a marine fuel is possible, but for it to be available at scale while maintaining safety, there is a need to: Manage and expand the use of renewable energy; promote the development of decarbonisation policies; foster the development of new technologies to improve the production efficiency; develop an international regulation framework at IMO for using ammonia as a fuel; encourage collaboration between stakeholders to address technology and safety issues; and carry out additional studies to develop a better understanding of the risks and safety challenges of using ammonia as a marine fuel and how to mitigate them.

“Ammonia shows a good and promising potential, but to become the alternative fuel to support the decarbonisation of shipping, early action is needed to unblock all the barriers opposing its uptake,” said EMSA.

Marex Media