Japanese conglomerate Itochu is leading a 23-company group to study the adoption of "green" ammonia to fuel ships as the regulatory climate moves closer to a zero-emissions target.
Ammonia is a hydrogen-based chemical that many have identified as the most likely fuel to help drop greenhouse gas emissions in the global shipping fleet, which accounts for about 3pc of global carbon emissions. "Green" ammonia refers to ammonia that has been produced using renewable energy.
Among the goals of the study are to identify challenges for ammonia marine fuel and understand the development of ammonia-fueled ships as well as the worldwide supply chain of the fuel, according to Itochu.
Other companies in the study group include Trafigura, Anglo American, DNV, Equinor, Genco Shipping and Trading, and Nihon Shipyard.
The IEA said in its net-zero roadmap that ammonia will account for 45pc of the shipping sector's energy demand by 2050, compared to effectively 0pc now.
The issues considered during the study include green ammonia's safety as a maritime fuel during bunkering operations, the specifications of green ammonia and the production of ammonia with net-zero carbon emissions, said Rasmus Nielsen, global head of wet freight at Trafigura.
"For [ammonia] to be widely accepted as a marine fuel we need to help demystify the risks and safety measures needed so that they are understood by policymakers and the maritime industry," said Nielsen.
The incentive is rising for shippers and shipowners to decarbonize their operations following increasingly frequent calls from within the industry, including from Trafigura, for a carbon tax. Shipping giant Maersk proposed a $450/t carbon tax on marine fuel earlier this month.
In April, Trafigura partnered with German engineering company Man Energy Solutions, which is also part of the Itochu study, to develop an ammonia maritime engine.
Trafigura was the tenth largest charterer of crude oil tankers in 2020, according to shipbroker Poten and Partners.
Other participants in the study include ABS, ClassNK, Fortescue Metals Group, Itochu Enex, Jera, K Line, Mitsui E&S Machinery, NS United, Pavilion Energy, TotalEnergies, UBE Industries, Uniper SE, Uyeno Transtech, Vale and Vopak Terminal Singapore.
