BSM Ammonia Day: Demystifying Ammonia as the Carbon-Free Shipping Fuel

The key Insights and takeaways from the event were as follows:

• Ammonia is produced and transported widely around the world already.
• Ammonia-burning 2-stroke and 4-stroke engines are already available now - with the production portfolios due to expand from 2025. However, there is not yet any practical experience in using Ammonia fuel at sea.
• The bunkering infrastructure ashore is being developed - mainly in Norway, Rotterdam, Singapore and Hamburg – and many existing LPG/Ammonia gas tankers are suitable for conversion as bunkering vessels.
• Strong collaboration of all parties will be needed to get the ammonia supply and consumption network finalised.
• IMO is developing regulations, but they will be finalised as we gain experience. There are interim guidelines, and BSM has contributed to the series of valuable Ammonia documents produced by SGMF. Ammonia fuel is much better placed to start operations compared to the LNG sector some twenty years ago.
• Even before regulations are finalised, training courses have been developed to give sea staff the necessary background to operate Ammonia burning systems safely. This follows on from the wide experience across the gas sector in carrying bulk Ammonia cargo.
• Ammonia made from renewable resources is the only carbon-free fuel that can make a difference to GHG emissions. Production facilities are under construction around the world, but so far there is no indication of cost. However, it looks likely the Ammonia fuel price will be about the same as Marine Gas Oil (MGO) on an energy-content basis when taking into account current and future emissions regulations.