Ammonia has historically served as a vital input for the production of fertilizers and chemical products. However, its role is expanding with the emergence of new markets for green and blue ammonia. These markets are utilizing ammonia as a substitute for coal in power generation, as well as in the manufacturing of green steel and as a marine fuel. This shift is being driven by the growing demand for ammonia within the context of the global energy transition.
Currently, the global annual production of ammonia stands at approximately 200 million tonnes, with 20 million tonnes being transported in LPG carriers. Nonetheless, these figures are projected to increase significantly in the near future due to the rising demand in various sectors. The potential use of ammonia as a fuel in the shipping industry will be determined by the pace of this growth.
The increasing interest in ammonia is primarily attributed to its zero emissions profile when employed as fuel. Additionally, ammonia production does not rely on biogenic carbon sources, providing a significant advantage as the global economy moves away from fossil-based fuels. Competition for biogenic carbon from diverse industries underscores the necessity to depend on alternative sources, including captured CO2, electrolysis, and waste sources.
The expansion of ammonia usage also presents opportunities for utilizing green hydrogen as a fuel. However, due to its cost-effectiveness in long-distance transport, it is likely that the majority of hydrogen will be generated by converting green ammonia at the point of consumption.
To fulfill the demand for green ammonia across various industries, its production capacity, alongside that of renewable electricity and green hydrogen, needs substantial growth. Current global installations of wind and solar farms, as well as electrolyzers for green hydrogen production, are insufficient to meet these demands.
The geographical distribution of favorable locations for renewable energy generation underscores the challenge of transporting these resources from production centers to areas of demand. As the availability of renewable electricity and green hydrogen becomes a concern for multiple industries, there is an expected constraint in the supply of green ammonia.
The propulsion technology for ammonia as a fuel necessitates further research and development to optimize emissions reductions and ensure stable combustion. Initial tests have shown promise for using ammonia as a combustion fuel in internal combustion engines, and engine manufacturers are making progress in the development of ammonia-fuelled engines.
The potential barriers to ammonia usage as a fuel, such as assessing emissions and the need for exhaust gas after-treatment, are being addressed through ongoing research. Emissions levels and compliance with environmental standards are expected to be critical factors in determining the scalability of ammonia fuel usage.
In conclusion, the growing prominence of green and blue ammonia as a primary fuel source in various industries is undeniable. However, continued investment in technology is needed to address emissions and safety concerns, as well as to scale up production to meet the growing demand.
René Sejer Laursen offers his expertise as the Director of Fuels & Technology at the American Bureau of Shipping (ABS).
The opinions expressed in this article are solely those of the author and do not necessarily reflect those of The Maritime Executive.