INTERVIEW: Ammonia’s share may be 40% of global bunker fuel demand by 2050 -- Amogy CEO

US-based Amogy "deeply believes" that ammonia could account for as high as 40% of the global bunker fuel consumption mix by 2050 as decarbonization gains momentum, company cofounder and CEO Seonghoon Woo told Platts, part of S&P Global Energy.

Amogy has already completed demonstrations of its ammonia-to-power technology on a drone, a tractor, a semi-truck and in 2024 on a tugboat, Woo said in an exclusive interview during the Singapore Maritime Week that ended April 24.

The company has developed an ammonia-to-electrical power system that splits, or cracks, liquid ammonia into its base elements of hydrogen and nitrogen. The system then funnels the hydrogen into a fuel cell or hydrogen engine, generating high-performance power, according to Woo.

Amogy aims to focus on ammonia-based stationary power applications over the next two-three years and then expand its capabilities into the maritime sector, Woo said.

Amogy plans to replace conventional four-stroke diesel marine engines with its carbon-free ammonia modules by 2028-29, then scale up to the main engine replacement about 2033-2035, Woo said.

The ammonia option

"The beauty of ammonia is that its production is very scalable," Woo said.

Global ammonia production stands at about 200 million metric tons/year, meaning the output must be augmented by an additional 200 million-300 million mt/y for use as a marine fuel, according to Woo.

India and China are already ramping up production of green ammonia, derived from renewable hydrogen, Woo said.

Green ammonia production costs in some countries are about $500-$600/mt, much lower than a few years ago, when it was forecast to be about $800/mt, Woo said. "Lower green ammonia prices will drive its adoption even faster."

Stricter environmental regulations, including the EU ETS, the Fuel EU Maritime and the International Maritime Organization's Net Zero Framework, favor ammonia's use as a marine fuel, Woo said, adding that the ratification of the NZF, expected in 2026, will likely accelerate its adoption.

Fuel pricing is another vital consideration for shipowners. "I think ammonia is going to be the most economical in that sense," Woo said.

The price differential between green ammonia and fossil fuels is expected to narrow further as demand for cleaner fuels accelerates, Woo said. Present geopolitics, including the Middle East war, are also driving up conventional fuel costs, making fuels like ammonia more competitive with LNG, he said.

March's monthly average delivered bunker fuel prices stood at $913.32/metric ton for very low sulfur fuel oil in Singapore, $855.41/mtVLSFOe for LNG bunker at Singapore, $1,083.05/mtVLSFOe for biobunkers B24 Singapore, $1,236.10/mt for 20% sustainable bunker methanol Singapore, and $1,855.27/mt for green ammonia Far East Asia, according to the global bunker fuel cost calculator from Platts.

Safety concerns around ammonia bunkers are overhyped, according to Woo.

"Many cargo ships carry ammonia as a cargo. So, dealing with ammonia as a chemical is well understood," Woo said.

"Using it as a fuel may be new territory. However, we can take steps, including crew training and developing bunkering standards, to ensure safety in its use."

The first commercial engine is nearing launch, meaning that the fuel must pass various safety requirements, Woo said.

Everllence announced April 20 the successful factory acceptance test of its first ammonia-burning engine built by licensee HHI-EMD in South Korea.

During SMW 2026, NYK Line, Golden Island and Yara Clean Ammonia announced a partnership to jointly explore the marketing and supply of low-carbon ammonia as a marine fuel to maritime end-users in Singapore.

Singapore is the world's largest bunkering port. According to a report by the Global Centre for Maritime Decarbonisation in January, ammonia could make up about 4% of the city-state's bunker fuel demand by 2035.

Power generation applications

Amogy has already forayed into its modules in stationary power applications.

In April, Amogy announced that it had signed a joint venture agreement with South Korean engineering, procurement, and construction company GS Engineering & Construction to establish and operate a JV focused on ammonia-based distributed power generation.

This JV agreement builds on a previously announced project in Pohang City, South Korea, and aims to deploy an ammonia-based power generation system of up to 40 megawatts at the Yeongilman Industrial Complex, Woo said.

Construction of the green ammonia modules is expected in July, with the project due to ramp up from 1 MW starting later in 2026 or early 2027 to 10 MW by 2027-28 and then to 40 MW by 2029-30, Woo said.

South Korea is expanding private sector participation to advance its decarbonization targets and ensure grid stability. Governments in many countries are also either offering subsidies or imposing penalties for emitters through a carbon tax, Woo said.

Outside South Korea, Amogy is targeting markets like Japan, Taiwan and Singapore for power generation applications, he said.

Amogy is also seeking collaborations with data center developers, Woo said. It has signed an agreement with a Japanese company that will use its ammonia modules to power data centers, Woo said.

"The project is in its early phases of development ... We believe we will have more to share and announce later this year, as the company advances its pipeline," he added.