With temperatures rising at unprecedented speeds and glaciers melting every year at a record pace, efforts for finding zero-carbon solutions are increasing all across the world and in all industries.
The global shipping industry, which is responsible for 2% of the world’s greenhouse emissions, has already taken steps for a carbon-free future: In 2020, the International Maritime Organization (IMO) introduced the “IMO 2020 0,50% sulfur limit” , cutting total sulfur oxide emissions from shipping by over 75%. In June 2021, IMO adopted short-term measures to reduce carbon intensity of all ships by 40% by 2030, compared to 2008.
Before the entry into force of the new limit, most ships were using heavy fuel oil but IMO 2020 regulations have either outright banned the use of heavy fuel or made it very difficult. Derived as a residue from crude oil distillation, heavy fuel oil had a much higher sulfur content which, following combustion in the engine, ended up in ships’ emissions. Thanks to the measures now, the vast majority of ships are using very low sulfur fuel oil (VLSFO) to comply with the new limit.
Ammonia related projects around the world
Although the measures so far have had a positive impact in terms of reducing emissions, they haven’t proven sufficient to secure a zero-carbon future. Research and investment toward greener fuel alternatives has increased significantly around the world, including a large number of projects to commercialize ammonia, and ideal zero-carbon fuel.
In one such initiative, the Finnish engine maker Wartsila is working on an ammonia-fueled four-stroke marine engine. In another project MISC Berhad, Samsung Heavy Industries (SHI), Lloyd’s Register and MAN Energy Solutions are working together on an ammonia powered tankered project. Tokyo based Itochu Corporation and The Dutch terminal operationer Vopak Terminals had signed a partnership for another ammonia project.
As a result, some of these attempts have already come to life and are now being put to work. Here are the projects from around the world that have enable the use of ammonia as a fuel for vessel:
Japan’s Planning and Design Center for Greener Ships (GSC), in cooperation with member shipbuilders, has developed an ammonia-ready LNG-fueled Panamax bulk carrier.
On 20 April 2022, the design received approval in principle (AIP) from the classification society ClassNK.
The Panamax bulk carrier is LNG-fueled but ready for ammonia fuel. The 80,400 dwt ship has a length of 228,9 meters and a width of 32,26 meters.
For the short-term aim of lowering CO2 emissions, it will be operated by using LNG fuel.
For LNG-fuel arrangement, the systems will be operated as dual-fuel LNG and HFO, and for ammonia fuel arrangement, they will be operated as dual-fueled NH3 and HFO. Both arrangements can keep the similar endurance and cargo capacity as the current Panamax bulk carrier.
According to GSC, the ship is developed as a flexible and efficient solution to enduring the unpredictable period of fuel transition.
Singapore’s Maritime and Port Authority (MPA) announced that it will offer discounts of up to 50 percent on some fees and taxes for ships committed to cutting emissions beyond what is required by the International Maritime Organization (IMO), starting from 1 May.
The MPA announced the discounts in a circular updating its Green Ship Programme (GSP) for Singapore-flagged ships released on 22 April.
A vessel that exceeds the requirements of IMO’s Marpol Annex VI Phase 3 Energy Efficiency Design Index targets by 10 percent or more will get a 50 percent reduction on initial registration fees and a 20 percent rebate on the annual tonnage taxes (ATT).
In April, Samsung Heavy Industries (SHI) and Denmark’s Seaborg Technologies announced a partnership for developing floating nuclear plants.
The aim of the strategic partnership is to manufacture and sell turn-key power plants, ready to be moored at industrial harbors and connected to the electric grid onshore.
As relayed by the partnership, the floating nuclear power plants will be based on Seaborg’s Compact Molten Salt Reactor (CMSR). The agreement includes development of hydrogen production plants and ammonia plants, as the CMSR is said to be an ideal power source for the supply of stable, clean, and safe electricity.
The design of the hydrogen, ammonia and power units will be optimized for efficient serial construction at SHI’s shipyards.
Norwegian chemicals company Yara International in April this year pre-ordered 15 floating bunkering terminals from Azane Fuel Solutions enabling shipping fleets’ uptake of emission-free green ammonia as fuel.
Yara International and Azane Fuel Solutions have signed a commercial agreement to establish a carbon-free ammonia fuel bunker network in Scandinavia. The ammonia bunker terminals will be designed and constructed by Azane Fuel Solutions and delivered to Yara. As one of the world’s largest ammonia producers, the global fertilizer company Yara, will use its position to deliver green ammonia to the shipping industry.
Last year, the Azane Shareholders, AMON Maritime and ECONNECT Energy received public funds from Norway’s Green Initiative program to develop and construct the first pilot unit.
Earlier this year, the International Chamber of Shipping (ICS) signed a Partnership Agreement with the International Renewable Energy Agency (IRENA) to support the decarbonisation of the shipping sector and its role in the transition towards a global energy sector based on renewables.
The partnership will provide a framework over the next two years for ICS and IRENA to assist with the decarbonisation of the shipping sector and the use of renewable technologies on this key sector of the global economy. It will also enable the industry to work closer with IRENA’s global membership of more than 160 countries and territories on issues related to the increasing role of renewable energy in decarbonising shipping. The organizations will set up a regular exchange of information regarding energy supply and demand relevant to the shipping sector and exchange of data on scenarios of ‘future fuels’ such as green hydrogen and ammonia, for both nation states and the shipping industry.
Japanese shipping giant Kawasaki Kisen Kaisha (K Line) net zero emissions targets late last year received class approval for an ammonia-fueled car carrier.K Line, together with Shin Kurushima Dockyard, announced in late 2021 that they had gained an approval in principle (AIP) from ClassNK for the new carrier.
Ammonia is essentially a fossil fuel product and for it to be converted into asource, it needs to be produced with electric power. Many observers believe that states investing in greener fuel options will benefit financially in the coming years. n May, the Environmental Defense Fund published Sailing on Solar, a significant new report that assesses the potential for green ammonia to be used as a maritime fuel, reducing the global shipping industry’s carbon emissions.The report states that a plant which would cost about 100 billion dollars could in the long run bring back 1 trillion US dollars to developing economies.
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