21/09/22

Green Ammonia: As doubters voice safety concerns, is the sector listening?

The case for ammonia as a marine fuel continues to gain momentum. With support growing, shipowners, producers, traders, engine designers and shipbuilders alike are increasing their efforts to study, design and evaluate ammonia as a future propellant for many types of vessels. We are already seeing key players in the industry undertake work to ensure that bunkering vessels, storage, and supply infrastructure can be put in place to support the transition, as well as the necessary regulations.

Cause for concern

In stark contrast to the keen interest outlined above, some parties have voiced safety concerns over the fuel’s use in marine propulsion. They argue that, when compared with methanol or LNG, ammonia as a fuel poses far more serious risks to on-board and shore-side personnel. These fears are backed by recent study findings which have prompted calls for far more stringent safety measures to be enforced to prevent leaks during ship operations and bunkering.

Will these doubts impact the sector?

Tom Larcombe, Broker - LPG & Ammonia at Clarksons Gases commented:

“The safety standards put into effect will need to be exceptionally stringent for ammonia to become a successful and widely accepted marine propellant. Having said that, in our view, there is sufficient desire and investment apparent to ensure that ammonia will, at least for some trades, be adopted as a fuel."

“Logically, we envisage this starting with ammonia carriers themselves, which are the cargo tanks able to double up as bunker tanks. Whilst ammonia is mostly seen as a fuel for new vessels under construction, work is also under way to evaluate whether existing LPG dual-fuel LPG/NH3 carriers can be converted to use ammonia in their main engines.”

Clarksons Gases and Green Ammonia Team

We are the leading provider of shipping-related services to the ammonia industry - and have been for over four decades. More recently, developments in green ammonia and CO2 carriage have become focal points for the Clarksons Gases team.

We deliver integrated solutions with our unique blend of experience and knowledge. Backed by strong analytical support, our Chartering and Asset team is well positioned to assist with developing your ammonia strategy and future-proofing your shipping requirements.

Clarksons Gases welcome new players and the growing efforts being undertaken to decarbonise the industry while remaining fully committed to our traditional ammonia clients. We are already handling several project enquiries from a variety of existing and prospective clients. If you require any help, please contact the team.

Contact the green ammonia team.

Meet the team

Further Insight

3D rendering of LNG tanker sailing in sea at night

CO2 and Ammonia Gases

Premium

UK Carbon Storage License Awards: What Does it Mean for Shipping?

In 2019, the UK government committed to a 100% reduction in greenhouse gas emissions by 2050 compared to 1990 levels. This net zero target, aimed at tackling climate change, has prompted significant developments in the country’s carbon capture and storage (CCS) efforts. In September 2022, the latest round of NSTA licence applications closed, with the details of awarded licences confirmed in September 2023.

CO2 and Ammonia Gases

Premium

Cheers for Dutch CCS Project FID

There were cheers, literally, from the audience at the recent Carbon Capture & Storage Association (CCSA) conference in London when news broke that midstream player Gasunie and its fellow Dutch state-controlled partners had taken FID on the E1.3 billion Porthos CO2 transport and storage venture, the most advanced carbon sequestration project in the Netherlands.

CO2 and Ammonia Gases

Premium

Emerging Players and Projects in UK Carbon Storage

In September 2022, the most recent round of NSTA licence applications closed. Reports have been circulating since late this spring about the likely awardees, but it was only a year later, in September 2023, that details were finally confirmed.