Maritime players partner to explore ammonia as bunker fuel in Singapore

Singapore — Six high-profile shipping market participants have joined forces to conduct a feasibility study into setting up a supply chain to provide green ammonia for ship-to-ship bunkering at the Port of Singapore, the partners said in a joint statement March 10.

The participants in the study are A.P. Moller-Maersk A/S, Fleet Management Limited, Keppel Offshore & Marine, Maersk Mc-Kinney Moller Center for Zero Carbon Shipping, Sumitomo Corporation and Yara International ASA.

The study aims to cover the entire end-to-end supply chain of ammonia bunkering, including the development of a cost-effective green ammonia supply chain, design of ammonia bunkering vessels and related supply chain infrastructure, the partners said in the statement.

"Ammonia as energy carrier is an enabler of the energy transition and we recognize the need for value chain collaboration to make zero emission shipping by using ammonia as a fuel a reality," Magnus Ankarstrand, EVP of Yara Clean Ammonia, a unit of Yara International, said in the statement.

Green ammonia is produced solely from renewable electricity, water and air and has no CO2 emissions.

The IMO in April 2018 announced plans to cut the shipping industry's total greenhouse gas emissions by at least 50% by 2050 from 2008 levels, and reduce CO2 emissions per transport work by at least 40% by 2030. As part of the plans, the IMO's marine environment protection committee last November strengthened its Energy Efficiency Design Index, or EEDI, Phase 3 requirements.

Under the ammonia study, relevant government agencies and experts in Singapore will be engaged in working towards the standardization of safe operations and regulations. The study will also assess the supply of ammonia, including potential synergies with LPG as a starting point.

"Alongside methanol, at A.P. Moller-Maersk we see green ammonia as an important future fuel for the decarbonization of our fleet," Morten Bo Christiansen, VP and head of Decarbonization at A.P. Moller-Maersk, said in the joint statement.

"A dual fuel ammonia engine is currently under development, but for green ammonia to fuel our vessels in the future we also have supply, infrastructure and safety related challenges to solve, not least when it comes to bunkering operations," he added.

Aiding decarbonization

Singapore, the world's largest bunkering port, is undertaking several initiatives to promote cleaner fuels at its facilities.

Another project, The Castor Initiative, is also underway, with its partners including MISC Berhad, Lloyd's Register, Samsung Heavy Industries, MAN Energy Solutions, the Maritime and Port Authority of Singapore and Yara International.

That consortium will tap into MPA's experience as a bunkering hub and flag state to gather insights on safety issues and ammonia bunkering procedures, and gain access to research capabilities in Singapore, the group said in February.

Ammonia is readily available worldwide. Over 120 ports worldwide already are handling ammonia products for import and export, and some even have storage facilities, industry sources said separately.

Small plants are expected to become operational from 2025 to produce green ammonia at a cost of $650-$850/mt, the Korean Register said in a recent report. Production costs are expected to drop to $400-$600/mt once larger plants are constructed in 2030, and fall further to $275–$450/mt in 2040 as consumption increases.

As a fuel, ammonia's stability is better than propane and similar to gasoline, according to the Korean Register report. adding the gas was relatively easy to liquefy and like LPG, ammonia can be liquefied by applying a certain pressure even at room temperature.