Ammonia may take up a significant slice of the global bunker market in future decades. File Image / Pixabay
Japan expects to see a 'significant amount' of ammonia demand from bunkering by 2030, according to price reporting agency S&P Global Platts.
The country's Ministry for Economy, Trade and Industry will introduce ammonia into the fuel mix for power and shipping towards the end of this decade, Platts reported Monday, citing comments from Ryo Minami, director-general of oil, gas and mineral resources at the ministry.
"Ammonia is expected to increase its importance because it does not emit CO2 when it is burned," Platts cited Minami as saying.
"Ammonia is expected to be introduced as fuels on a commercial basis for thermal power generation and shipping in the late 2020s, and it is expected to be used for a significant amount by around 2030."
Ammonia is one of the leading candidates to become the dominant bunker fuel in the decades to come as the shipping industry bears down on its carbon emissions. But producing it in the quantities needed by shipping would require a huge expansion in renewable power capacity on land, at a time when other industries will also be competing for this capacity.