Ammonia, traditionally used in agriculture and industry, currently has very important potential as naval fuel. In this article we analyze the challenges facing technological adaptation and its role in decarbonizing the maritime sector.
We are grateful to José Ramón Freire, general manager of the Spanish Association for Renewable Ammonia for his collaboration in the preparation of this article.
The International Maritime Organization is committed to United Nations Sustainable Development Goal 13 (climate action), which seeks to combat climate change and its effects. In the context of maritime activity, this means taking measures to improve the energy efficiency of seagoing vessels. The adoption of renewable ammonia as a fuel could be key to achieving decarbonization across the industry, although this entails overcoming certain changes and adaptations.
“When we talk about alternative fuels compared to conventional ones, one of the most delicate aspects to consider is what is known as bunkering, which is the logistical processes for storing and supplying this fuel, since logistics infrastructure implementation processes are often difficult and costly,” explains the expert.
However, the overall availability of this product (present in more than 120 ports) and its physical conditions (it’s transported in a liquid state at ambient temperature with relatively low pressures to facilitate handling) mean that ammonia has a few advantages over other fuels such as liquid natural gas (LNG) or hydrogen. As Freire states: “A big plus with ammonia is that it doesn’t require a biogenic CO2 source and has established logistics in place, which means it’s a very viable option.”
The challenges facing ammonia as a viable alternative solution
As mentioned, a large proportion of port infrastructures already has the right systems in place to properly store ammonia, giving it an edge over other fuels. However, making ammonia work on board maritime vessels can be more complex. “Technological developments in dual combustion engines or even completely new solutions are required for ammonia fuel to be a feasible option,” notes Freire.
One of the main obstacles ammonia faces is its cost, especially when it’s produced as a renewable from green hydrogen. The process is more costly than it is for fossil fuels, and a greater amount of product is required to replace the one obtained from gray hydrogen. This means that the industries currently using ammonia will initially be competing against each other for supplies. Despite these difficulties, Freire points out that this challenge could be an opportunity: “As renewable ammonia production escalates, costs should decrease, which will facilitate its adoption as a large-scale fuel.”
One of the measures proposed by the expert to enhance its competitiveness is to implement subsidies, differential taxation and other incentives that can help reduce the price and encourage broader adoption use, as well as international regulatory agreements: “Although Spain is comparatively competitive in green hydrogen production, the price is still triple that of fossil hydrogen,” he explained.
Technical and security challenges
The use of ammonia fuel is not exempt from technical risks and challenges. Similar to what happens with LNG, which was first used in large tankers, shipping companies using ammonia-powered vessels are at the forefront of this promising future and transport the product with great knowledge and security. To facilitate wider use, they are requesting ammonia-propelled solutions from engine manufacturers look, who are initially responding with methanol-powered engines, since it requires less technological effort to adapt. However, the disadvantage is that it is not as widely available in ports.
In any case, this is a long-term project. Although the vessels currently transporting ammonia are able to handle the transport aspect correctly, additional development is required to get to this stage with commercial vessels. “Getting ammonia recognized and used as a global fuel will take time, awareness-raising and training. Being number one doesn’t come easily. In this innovation, adaptation and decarbonization race, the most advanced and committed players – shipping companies, ports, shipyards and technologists – will be those who strengthen their leadership position,” he insisted.
The proof that ammonia can be a technical and operational alternative is found in milestones such as that achieved by the Fortescue Green Pioneer, the first ammonia-powered oceangoing vessel. “This progress will encourage other engine manufacturers and ship owners to invest in adapted propulsion technologies. It’s a notable success in demonstrating that we’re talking about a scalable and economically viable solution,” says Freire.
The future of the ammonia market
Ammonia as marine fuel is making progress, and in the short term it’s likely that we will see more and more green vessels and prototype ships, most likely linked to the transport of the product itself. “There will be competition between ammonia, methanol and LNG, and achieving the necessary scale will require the definition and prioritization of alternatives by sector,” asserts Freire. When these first advances materialize, greater international regulation will be required to generate the necessary incentives to reduce costs and increase production.
The consolidation of ammonia as a fuel in the maritime sector goes hand in hand with technological advances. “Developing cheaper and less energy-intensive production methods, efficient and clean engines, in addition to improving and standardizing the handling ammonia to mitigate operational and environmental risks are all vital pieces of the puzzle,” the expert states. He also asserts that for this to happen, rigorous analysis and determined support are essential, which will involve collaboration between governments, international bodies, the maritime industry and the scientific community.
Article collaborators:
José Ramón Freire is a graduate of Senior Industrial Engineer from UPM in Energy Techniques, with several masters in energy, finance and people management. He is currently General Manager of the Spanish Bioethanol Association, the Spanish Association for Renewable Ammonia and General Secretary of the Association of Foreign Trade in Cereals. He is also an energy consultant and a founding partner of Linze Electric Vehicle and Eris Solar.
He began his professional career at Andersen Consulting, and has been General Manager, Chairman and Director of several cogeneration, waste processing and biomass companies.
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