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In September 2024, the Port of Dampier, Australia, marked a significant milestone in marine fuel innovation with the first successful ship-to-ship (STS) ammonia transfers, establishing ammonia as a viable low-emission fuel for global shipping. This pilot operation, coordinated by the Global Centre for Maritime Decarbonisation (GCMD) and Yara Clean Ammonia, successfully transferred approximately 4,000 cubic metres of ammonia between two carriers.
For energy providers, this breakthrough presents both an opportunity and a challenge to expand ammonia’s role as a sustainable fuel while developing the necessary supporting infrastructure.
Harnessing Ammonia: opportunities and safety in Marine Fuel
Ammonia has strong potential as a marine fuel, offering zero CO2 emissions, high energy density and scalability for large vessels, making it ideal for long-haul shipping. The recent STS transfer proves ammonia’s feasibility in port environments, moving it closer to widespread adoption and creating new demand for energy providers in green fuel production.
However, ammonia’s toxicity and corrosiveness demand strict handling protocols. This highlights the need for specialised infrastructure, including bunkering vessels with double-wall barriers and ammonia-compatible systems, which presents a growing investment opportunity for energy providers in both ammonia production and the handling infrastructure required to support it.
Challenges in expanding ammonia fuel markets
While ammonia’s environmental benefits are clear, the commercial landscape still poses challenges. Ammonia bunkering operations remain higher-cost than traditional fuels, in part due to limited supply and specialised infrastructure. But as more energy providers enter this market, economies of scale and increased competition could help reduce costs, making ammonia a more commercially viable option. Furthermore, the current market is limited, with only about 25 dual-fuel vessels operating globally. For energy and fuel providers, scaling up ammonia supply hinges on building industry confidence, infrastructure and a network of suppliers capable of meeting demand as the fleet expands.
To accelerate the adoption of ammonia as a marine fuel, several key technologies are crucial:
Safety innovations: Advanced emergency release systems and real-time monitoring sensors for ammonia levels and pressure are essential for safe STS transfers. Investing in these technologies helps energy providers meet safety standards and ensure operational continuity.
Dedicated bunkering infrastructure: Investing in specialised bunkering vessels and ammonia-compatible port facilities will position providers as leaders in the growing ammonia market.
Automated transfer systems: Automation can streamline STS operations and minimise human error, necessitating collaboration among equipment manufacturers, port authorities, and fuel providers for efficient processes.
Standardised protocols and training: Developing industry-wide safety standards and training simulators will enhance operator confidence and prepare crews, boosting ammonia’s market appeal.
By addressing ammonia’s operational, safety, and infrastructure challenges, energy providers can significantly aid the maritime industry’s shift toward sustainability. Investing in ammonia production, transport infrastructure, and handling technologies will allow providers to capitalise on the increasing demand for low-emission fuels, positioning ammonia as a key player in the global energy market.
As stakeholder collaboration intensifies, ammonia’s role in shipping grows more promising. Energy providers that proactively establish dependable ammonia fuel supply chains will lead the way in maritime decarbonization, significantly influencing the future of clean energy in this critical industry.
