Alternative fuels – ammonia a serious option

15 Apr 2024 News

Following least month’s 81st meeting of the IMO’s Marine Environmental Protection Committee (MEPC 81), modest progress was reported on several fronts:

  • With respect to the 2023 IMO GHG Strategy, discussions continued on the development of a GHG pricing mechanism and technical fuel standard.
  • There was further discussion on the Energy Efficiency of ships and future reporting of fuel consumption.
  • There was adoption of amendments on reporting requirements for containers lost at sea.
  • There were recommendations on the carriage of plastic pellets by sea in containers.
  • There were discussions related to the implementation of the Ballast Water Management Convention and the adoption of practical amendments.
  • Proposals for new Emission Control Areas in the Canadian Arctic and Norwegian Sea were accepted.
  • Implementation of the Hong Kong Convention on Ship Recycling.
  • Underwater Noise Reduction – development of a draft action plan to address barriers to the implementation of Guidelines for the Reduction of Underwater Noise from Commercial Shipping. The need was highlighted to collect information on lessons learned and best practices concerning the application and uptake of the revised URN Guidelines.

In follow up to the meeting, the International Chamber of Shipping issued a statement:

“We welcome the progress made during these intensive negotiations to achieve net zero emissions from shipping, and the support received from around 60 Member States for a flat rate contribution system per tonne of GHG. The purpose of the proposed system is to reduce the cost gap and incentivise the accelerated uptake of green marine fuels, as well as providing billions of dollars to support the maritime GHG reduction efforts of developing countries,”.

“We have gained a better understanding of the concerns of those governments who still have questions about our proposed feebate mechanism. ICS will seek to address these concerns with all governments before the next round of IMO negotiations in September, to help ensure that the necessary regulatory framework can be adopted next year, for global implementation by 2027.

With respect to the comment on alternative marine fuels, much of the industry buzz has moved from LNG to green methanol and for those taking a longer-term view, to ammonia which is also generating its fair share of headlines. In the past month, the Norwegian Directorate for Civil Protection (DSB) has given its approval in principle for the construction of an ammonia bunkering facility at Fjord Base in Florø, planned by Yara Clean Ammonia, a subsidiary of Yara International along with the Norwegian ammonia bunkering startup Azane and Fjord Base, Norway’s westernmost oil base.

While subject to environmental permits and a final investment decision, the planned terminal consists of a floating barge with a capacity of 1000 cubic meters of low-emission ammonia to be used in bunkering of offshore supply vessels. Beyond this, Yara Clean Ammonia and Azane plan to develop a network of terminals in Scandinavia to showcase ammonia as a safe, carbon-free and reliable fuel for the shipping industry.

Illustration of Yara Clean Ammonia, Azane and Fjord Base bunkering barge; Courtesy of Yara

While this is happening, the American Bureau of Shipping (ABS), CALAMCO, Fleet Management Limited, Sumitomo Corporation, and TOTE Services signed an MOU on March 29, with the intention of establishing a supply chain for clean ammonia Ship-to-Ship bunkering based to begin with on the U.S. West Coast ports of Oakland, Benicia. Benicia is one of the largest vehicle-handing ports on the coast. while Port of Oakland also ranks among the top ten of the U.S. largest container ports.

 

For its part, engine manufacturer Wartsila has announced that it expects to deliver its first ammonia-fueled engine on a new vessel in early 2025, with increased sales projected for the 2030’s.

All this is happening as Lloyds Register recently issued a new report named Fuel for thought: Ammonia. Therein, LR highlights the need for an industry-wide understanding of the operational and safety challenges surrounding the use of ammonia as a marine fuel if it is to be adopted as part of the maritime energy transition. In particular, the report emphasizes gaps in the regulatory framework around its use in addition to the safety and practical challenges for the production and supply of zero or near-zero emissions ammonia. The report also examines the impacts of increased demand from agriculture and other sectors.

 

At an event initiated by the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping held in October 2023 in Copenhagen, the participants included the American Bureau of Shipping, Danish Maritime Authority, MAN Energy Solutions, SMGF, DNV, CF Industries, Intertanko, Cargill, A.P. Møller – Mærsk, BP, V.Group, Port of Rotterdam and Lloyd’s Register. The Head of Onboard Vessel Solutions at the Center stated:

 

“We all agree that the journey forward is anchored in safety. Without a meticulous and collective dedication to understanding its intricacies and establishing unwavering safety protocols, the immense potential of this fuel will remain untapped. The ships of tomorrow need more than just fuel; they require a steadfast commitment to safety. The safety of crew members remains at the forefront of considerations due to the toxic nature of the ammonia molecule, and a deep and comprehensive understanding of these risks, coupled with effective safety measures and professional risk management, is crucial for its widespread acceptance.

 

The potential of ammonia as a marine fuel is also highlighted by the recent signing of an MOU between U-Ming Marine Transport, a subsidiary of Taiwanese shipping company U-Ming Marine Transport Corporation and ITOCHU Corporation of Japan to explore the joint ownership and operation of ammonia-fueled ships. U-Ming operates a large and diversified fleet of ships including dual fuel Capesize bulk carriers and is considering the installation of rotor sails, carbon capture systems and the retrofitting of traditional oil fuel systems to methanol dual-fuel within its fleet. For its part, Itochu seeks to establish a collaborative global ammonia supply chain.

 

Also in Japan, MOL Coastal Shipping has entered an agreement with compatriot tanker company Asahi Tanker and ship manager IKOUS on a concept study of a large coastal ammonia carrier to enter service in 2028-29.

 

Concept ammonia tanker – Courtesy: MOL

 

For the time being, ammonia is primarily used as a raw material for fertilizers, and its shipping volume is relatively low. That said, demand is growing as a next-generation clean energy source that does not emit carbon dioxide during combustion, particularly in Japan, where ammonia is already transhipped by coastal vessels to electric power utilities and other consumers after being imported by ocean-going vessels.

Feature Image: Ammonia-powered gas carrier: Rendering courtesy Breeze Ship Design

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