Clean Ammonia: A Sustainable Fuel Solution for Maritime Decarbonization

New York – As the world approaches 2030, the urgency to meet the Paris Agreement objectives has intensified, with UN Secretary-General António Guterres urging increased action during his address to the UN General Assembly on 20 September 2023. A significant focus is on decarbonizing industries such as agriculture and shipping, with clean ammonia emerging as a promising solution.

According to World Economic Forum, Clean ammonia, a carbon-free molecule, does not emit CO2 or other greenhouse gases when burned. It offers advantages over hydrogen for long-distance transportation due to its higher energy density and liquid state at -33°C. Two types of clean ammonia, blue and green, are in production, both significantly reducing carbon emissions compared to conventional grey ammonia.

The development of clean value chains is crucial for reducing environmental impacts, such as greenhouse gas emissions and resource depletion. These chains support sustainable production and consumption, reduce waste, and increase efficiency, thereby contributing to climate change mitigation and ecosystem preservation. However, this is not a solo effort; green hydrogen requires renewable electricity generation and infrastructure development to be effective.

For the shipping industry, transitioning to green marine fuels like ammonia can significantly enhance sustainability and decarbonization efforts. Safety frameworks, regulations, technological advancements, and global policy developments are essential for safely adopting ammonia as a marine fuel. The world’s first ammonia-powered container ship, set to operate between Norway and Germany from 2026, exemplifies ammonia’s potential as a sustainable fuel.

Transitioning to clean value chains faces challenges, particularly in funding. Both public and private investment are necessary, and suitable incentive mechanisms need to be developed to attract investments for decarbonizing industries and transport.

Global distribution and infrastructure for ammonia are already established, facilitating the maritime industry’s shift to sustainable fuel alternatives. Collaborative partnerships across supply and demand chains are vital to mitigate investment risks and achieve supply chain efficiencies.

However, balancing the cost of clean fuel and operational costs of ammonia-powered ships presents uncertainties. Policies and incentives are key to making clean ammonia cost-competitive. Blue ammonia is expected to be cost-competitive with grey ammonia within the next decade, while green ammonia, facing high capital expenditure and technological efficiency issues, will need initial support.

In conclusion, clean ammonia stands as a promising solution for maritime decarbonization, with the potential to avoid a climate catastrophe and create sustainable jobs. However, this transition requires a concerted effort from various stakeholders to overcome the challenges and fully realize the benefits.