Will ammonia bunker be the future for marine fuel?

Ammonia saved us a century ago when the severe food crisis was combated by the development and use of ammonia as a fertiliser.

But now, the world is facing another crisis - climate change.

So, will Ammonia be a saviour once again, this time for the shipping industry?

Gibson weekly tanker report shows that by 2060, half of the bunker fuel will be replaced to Ammonia fuel.

Ammonia is a carbon-free fuel that can be used for shipping. It is thought to have many other benefits, including easier storage, and that it is a simpler process to liquify than Hydrogen. Ammonia is also wildly available around the world and is a commonly traded chemical.

However, the main barrier to it being used as a fuel for shipping is that it is acutely toxic.

The conversion efficiency process (currently around 50%) will have to also be improved dramatically, to reduce production costs and ensure it is cost-effective.

Ammonia fueled vessels, and Ammonia marine fuel are now under development by many companies.

NYK announced a joint venture to create an Ammonia fueled gas carrier, and Ammonia Floating Storage early 2020.

Today, there are no bunkering facilities for ammonia based marine fuels, but unsurprisingly there are developments to introduce these very soon.

If you have any questions or would like to discuss this further please do not hesitate to contact us at copemer@copemer.com

Sources and further reading:

https://www.nyk.com/news/2020/20200130_02.html

https://www.maritime-executive.com/article/new-research-shows-benefits-of-ammonia-as-marine-fuel

https://www.hellenicshippingnews.com/wp-content/uploads/2020/09/2020-09-25-Is-Ammonia-the-Next-Big-Bunker-Fuel-1.pdf

https://cen.acs.org/business/petrochemicals/ammonia-fuel-future/99/i8