Rotterdam completes first ammonia bunkering pilot, paves way for low-carbon transition

The Dutch port of Rotterdam has completed its first ammonia bunker operation, the port authority said April 14 as Europe's largest marine refueling hub readies itself for the alternative fuel amid tightening environmental regulations.

The pilot project involved transferring 800 cu m of liquid ammonia -- or around 500 mt -- at minus 33 C between two ships at the Maasvlakte 2 APM terminal, with the operation taking about 2.5 hours on April 12, according to the authority.

The bunker operation came after the IMO approved new greenhouse gas regulations that will effectively penalize ships using conventional oil-based fuels from 2028. Singapore, the world's largest bunker port, had its ammonia bunkering pilot in March 2024.

"This pilot validates our safety framework for ammonia bunkering, establishing that it can be conducted safely and without ammonia release in the port," the Rotterdam port authority said.

As part of the project, OCI -- owner and operator of the port's ammonia terminal -- partnered with trading house Trammo, which supplied the Gas Utopia to the Oceanic Moon carrying OCI's grey ammonia from Turkey and the US.

"Trammo, as the first charterer of dual fuel engine ships [that can burn ammonia and fuel oil] in the world, will start looking for ammonia bunkering solutions from 2026, and as such, is highly interested by those 'ship to ship' complex operations in ports," Trammo President Christophe Savi said.

"Trammo believes that ammonia as a bunker fuel will find a substantial space in the different ammonia existing uses in the coming years," Savi added.

Platts, part of S&P Global Commodity Insights, assessed CFR NW Europe ammonia at $500/mt duty paid/duty free April 11.

Other project participants included barge operator Victrol, James Fisher Fendercare, the DCMR Environmental Protection Agency, Rijnmond Safety Region, and the Joint Fire Service.

The successful demonstration follows Rotterdam's year-long preparation for ammonia bunkering operations. The port had previously announced plans for such trials by early 2025, emphasizing a "safety first" approach.

Rotterdam, the world's second-largest bunker port -- handling approximately 10 million mt of marine fuels annually -- has been positioning itself for the transition to alternative fuels via financial incentives and establishing safety regulations.

Emerging fuel

The timing of the pilot is significant as engine manufacturer WinGD in March reported securing some 30 orders for ammonia-fueled engines, with first deliveries scheduled from mid-2025.

Industry acceptance of ammonia as a marine fuel has been growing, with a recent survey showing that over 58% of maritime industry participants are willing to work with ammonia-fueled vessels, though safety and training remain key concerns.

The successful operation comes as major industry players advance their ammonia shipping plans, exemplified by Fortescue's recent agreement to charter an ammonia-powered ore carrier from CMB.TECH.

While the current pilot used conventional ammonia, the port authority emphasized that clean ammonia would play a crucial role in shipping's decarbonization efforts as it would be a zero-emission fuel on a lifecycle basis.

Green ammonia has strong potential in decarbonizing the shipping industry, according to industry participants, but it is highly toxic and corrosive and the first ammonia-fueled ships for deepsea trades are only due to hit the waters later this decade. It is also not expected to be cost-competitive until next decade.

March's average bunker price for very low sulfur fuel oil was $508.65/mt in Singapore, while the most competitive production cost for renewable ammonia delivered to Far East was $1,950.36/mtVLSFOe on a cargo basis, according to Platts global bunker cost calculator.