Lloyd’s Register

With international shipping activity to more than double by 2050, the IEA forecasts that ammonia’s share of final energy consumption in the industry will rise to 44% in 2050, with a suite of other low-carbon fuels to play smaller roles. Lloyd’s Register & OCI HyFuels have also forecast that ammonia (and particularly electrolytic ammonia) will become the most significant fuel in the maritime sector by 2050.

Norwegian technology developer Pherousa announced that it has developed & validated an ammonia cracking-based propulsion system, with plans to order six Ultramax vessels fitted with the technology. Grieg Maritime has ordered up to four ammonia-ready bulk carriers from China State Shipbuilding Corporation for delivery in 2026. And a new container ship design has been unveiled by the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping.

In our latest episode of Maritime Ammonia Insights, we explored the findings of a new, landmark environmental study: Ammonia at Sea. Speakers representing the report’s co-authors joined us to discuss the results, what further work is required and how the report is being incorporated into policy discussions at the IMO.

In this week’s maritime ammonia news:

• Hyundai Heavy Industries, Lloyd’s Register and Korea National Oil Corporation have signed a new agreement to jointly develop an ammonia floating storage and regasification unit, or FSRU.
• KSS Line and Samsung C&T will cooperate to establish a clean hydrogen/ammonia transportation service, powered by alternative fuels.
• In Japan, K Line has announced ammonia will underpin its decarbonisation strategy to 2050, with AiP granted for a new Newcastlemax bulk carrier design.
• And the first of two CCU ammonia shipments have reached Ulsan from Saudi Arabia, with importer Lotte Fine Chemical leading development of a clean ammonia supply chain in the Yellow Sea.

Amon Maritime has launched a new subsidiary - Amon Offshore - which will build, own and operate a fleet of ammonia-powered platform supply vessels, to operate off Norway’s coast. The new PSV design has already received AiP for ammonia notation from DNV, and preliminary flag approval from Norwegian Maritime Authorities. We also explore two more AiP for ammonia-powered vessels in China: a 16,000 TEU container ship and a 50,000 tonne, mid-range oil/chemical tanker.

Five ammonia vessel updates this week:

1. An ammonia/liquefied CO₂ carrier concept design from Mitsui O.S.K. Lines & Mitsubishi Heavy Industries.

2. Approval in Principle for an ammonia-fueled car carrier designed by China State Shipbuilding.

3. Approval in Principle for the MS Green Ammonia.

4. An MoU between three members of the Castor Initiative to design & construct two Very Large Crude Carriers.

5. A concept design for up to four types of ammonia-ready, LNG-fueled vessels (ARLFV) from NYK Line.

This week: a roadmap for ammonia-fueled gas turbines in Asia, ammonia solutions in Iceland, IMO sets new decarbonisation milestone, new ammonia-powered vessels planned, maritime study developments, Australian updates (Fortescue, AREH and Itochu in Gladstone), Fertiglobe joins Abu Dhabi blue ammonia project and Statkraft's Porsgrunn plans.

Last week we presented the second episode in our monthly webinar series: Ammonia Energy Live. Every month we’ll explore the wonderful world of ammonia energy and the role it will play in global decarbonisation - with an Australian twist. This episode we welcomed Sammy Van Den Broeck, VP Project & Portfolio at Yara Clean Ammonia. Sammy was invited to give his thoughts on the key challenges and opportunities in the global ammonia transition, and explain to us why Australia is so important to Yara's future clean ammonia plans. Interviewing Sammy were Jacinta Bakker (Research Fellow in the MacFarlane Laboratory at Monash University) and Allison Gwilt (Senior Project Engineer, Future Fuels at Origin Energy).

Two recent announcements show Singapore emerging as a center for development of ammonia as a maritime fuel. In both cases, multi-party coalitions, with Singaporean connections, are focusing on ground-breaking work.

What action is needed to unlock the enormous potential of green ammonia as a marine fuel and get the new generation of ammonia-powered vessels on the water? On November 18, 2020, the Ammonia Energy Association (AEA) hosted a panel discussion moderated by Sofia Fürstenberg Stott from Fürstenberg Maritime Advisory, as well as panel members Tue Johannessen from the Center for Zero Carbon Shipping, Katharine Palmer from Lloyd’s Register, Rob Stevens from Yara International, and Kazumasa Taruishi from NYK Energy Transport.

We've recently reported a series of ammonia-fueled vessel development and demonstration projects led by industry consortia. One of these, in which Lloyd's Register is joined by Samsung Heavy Industries, MISC, and MAN Energy Solutions, is developing "an ammonia-fuelled tanker." In an interview with Ship Technology magazine this month, Lloyd's Register provided some new details about this project and added context for their ammonia-fueled vessel development plans.

Three separate projects to design a range of ammonia-fueled vessels were announced last week at a shipping industry conference in China. Lloyd's Register has granted Approval in Principle (AiP) for the design of a 180,000 ton bulk carrier. ABS announced a project to "produce designs for an ammonia-fueled Chittagongmax container carrier of 2700 TEU capacity." And Lloyd's Register also announced a project for "an ammonia-fuelled 23,000 TEU Ultra-Large Container Ship (ULCS) concept design." All three projects are working with the two-stroke ammonia engine developed by MAN Energy Solutions, and all are led by major shipbuilders in China.

ANNUAL REVIEW 2019: The maritime industry is learning about ammonia fast. It is searching for a new bunker fuel, and ammonia is one of the few options that can realistically deliver a 50% reduction in the sector's GHG emissions by 2050. The IMO declared this target in April 2018 and, in last year's Annual Review, I wrote about all the reports that were published demonstrating that ammonia could deliver this outcome. In the last 12 months, by contrast, we have moved quickly beyond analysis and into engineering design, technology testing, and product development.

This week, Lloyd's Register published the most significant comparative assessment so far of ammonia's potential as a zero-emission maritime fuel. The new report compares ammonia, used in either internal combustion engines (ICE) or fuel cells, to other low-carbon technologies, including hydrogen, batteries, and biofuels, estimating costs for 2030. It concludes that, of all the sustainable, available options, ammonia "appears the most competitive."