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Ammonia: The Game-Changer for the Shipping Industry

The global push for decarbonisation necessitates a shift toward lower- and zero-carbon fuel sources. Ammonia emerges as a promising candidate for future fuel, although its production, transportation, and usage pose challenges. This landscape is evolving rapidly, particularly within the maritime sector, where ammonia is gaining traction.

Ammonia consists of hydrogen and nitrogen, which positions it as a potential zero-carbon fuel. However, the predominant form of ammonia produced today is “grey” ammonia, created through an energy-intensive process reliant on fossil fuels. This traditional production method significantly contributes to carbon emissions, undermining the zero-carbon potential of ammonia.

To mitigate these emissions, the industry is increasingly turning to two lower-carbon production methods. The first is “blue” ammonia, produced by integrating carbon-capture technology into the traditional methods. This approach reduces carbon emissions but still hinges on fossil fuel sources. The second method, known as “green” ammonia, utilizes renewable energy and electrolysis, resulting in minimal to zero carbon emissions. Both blue and green ammonia are classified as low-carbon or decarbonised ammonia.

Although ammonia is being recognized as a viable fuel in the maritime industry, its primary use continues to be in industrial applications, particularly as a fertilizer. It is also finding applications in the production of plastics and synthetic fibers. In the mid to long term, low-carbon ammonia is expected to play a crucial role in power generation.

As the production capacity for blue and green ammonia expands, the maritime sector’s responsibility in transporting this fuel globally will become increasingly essential. The transition toward ammonia as a sustainable fuel reflects broader trends in the effort to achieve decarbonisation, emphasizing the need for innovation in production and delivery systems to unlock its full potential. Overall, the future of ammonia as a fuel hinges on overcoming existing challenges and capitalizing on advances in technology and infrastructure. The developments in the ammonia landscape are sure to reshape industry practices and contribute to global decarbonisation goals.

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