August 14, 2020ESGGeneral Business News

Ammonfuel – an industrial view of ammonia as a marine fuel


Alfa Laval, Hafnia, Haldor Topsoe, Vestas, and Siemens Gamesa issued a report “Ammonfuel – an industrial view of ammonia as a marine fuel” providing a comprehensive and up-to-date overview of the applicability, scalability, cost, and sustainability of ammonia as a marine fuel.

The report describes ammonia as an attractive and low risk choice of marine fuel both in the transition phase towards a more sustainable shipping industry and as a long-term solution.

The report is based on partners’ industrial expertise and input from a list of competent industrial players.


Guiding Concerns

The shipping industry is facing both known and yet unknown environmental and climate regulations and requirements such as the MARPOL regulations and the IMO targets for greenhouse gas reductions. Many have suggested ammonia as a sustainable marine fuel that can deliver compliance. However, ship investors are left with some key concerns:

– What is the future cost of green ammonia?
– Will safety be an issue?
– What is the global availability and scalability of ammonia as a marine fuel?
– What are the risks faced – or eliminated – by choosing ammonia fuel for the next investment?

Read the full report here: Ammonfuel Report – an industrial view of ammonia as a marine fuel, or continue reading for the highlights.



Ammonia availability and production scalability

– 120 ports already equipped with ammonia trading facilities worldwide
– Annual ammonia production: 180 million tons
– Conventional production over-capacity of 60 million tons/year ensures availability
– Additional ammonia production to meet 30% marine fuel demand in 2050: 150 million tons/year


Demand for renewable energy to produce green ammonia

– 400 GW power needed to meet 30% of future marine fuel demand
– In 2019 alone, 184 GW additional power production was installed


Cost of energy from VLSFO or ammonia

– 12.5–15 $/GJ for VLSFO (primo 2020, price is volatile)
– 13.5 $/GJ for today’s conventional ammonia (stable since ultimo 2018)
– 13.5–15 $/GJ forecasted cost for green ammonia from solar and wind energy in 2040–2050
– 16–21.5 $/GJ for carbon-neutral ammonia as dual fuel in 2025–2030


Safety and applicability

– 17.5 million tons ammonia safely traded and transported yearly by ship, truck, and train
– Existing practices and know-how for a safe ammonia handling are established in the Marine and other industries and adaptable for ammonia as a fuel.
– Dual fuel ammonia engine forecasted availability from 2024


Environmental Benefits

– Ammonia is a carbon and sulfur-free fuel
– Green ammonia is produced entirely from renewable electricity, water, and air. Unlike sustainable carbon-based fuels, the green ammonia feedstocks are unlimited
– Ammonia can burn in an internal combustion engine with no SOX, CO2, or particulate emissions. The installation of catalytic (SCR) technology eliminates N2O/NOX emissions to very low levels leaving an exhaust of nitrogen and water
– Ammonia is metabolized in the environment and does not build-up

If you’re interested in learning more, you can read the full report here: Ammonfuel Report – an industrial view of ammonia as a marine fuel,

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