Höegh Autoliners, Fortescue Back Green Ammonia as the Only Bunker Fuel for Shipping Emissions Reduction

by Ship & Bunker News Team
Tuesday November 12, 2024

Höegh Autoliners and global mining firm Fortescue today issued a bold backing of green ammonia as the only future bunker fuel able to meet Shipping's emissions goals.

The pair have called on global shipping regulators to fast-track the adoption of green ammonia "as the only marine fuel that can hasten the decarbonization of the industry."

"There are so many transition fuels that are being peddled out there, but they are just a distraction. Only green ammonia can help us reduce carbon emissions in shipping and in turn can help us address the worst impacts of climate change," said Mark Hutchinsonm, CEO of Fortescue Energy.

"We need early incentives for hydrogen derived fuels – specifically ammonia for 2030 – otherwise, we are kicking the can down the road and leaving too large a scale up for the 2040s."

The comments will presumably raise eyebrows among some market watchers, with current industry concensus being that marine shipping is very much destined for a multi-fuel future.

If nothing else, differences in regional availability is expected to make the commercial viability of each fuel vary across global ports.

Even if there was a single fuel future, uptake of ammonia currently faces arguably greater headwinds than key alternatives, with critics of ammonia as marine fuel pointing to its toxicity and the significant challenges to safe delivery that presents - an issue that has yet to be resolved.

Ammonia also lags significantly behind contenders such as LNG and methanol in terms of uptake.

Still, is remains very much in the frame as a candidate future fuel and for good reason: it is a carbon-free energy carrier that has a more attractive energy density compared to a number of other alternative fuels.

Ammonia is also already widely produced and traded, and can be produced from renewable energy sources.

Singapore, the world's biggest bunkering port, is expected to release an ammonia bunkering standard next year.

For its part, Höegh Autoliners has already taken steps towards using ammonia bunkers in the future.

"With our green fleet renewal program of 12 ammonia-ready Aurora Class vessels, the largest and most environmentally friendly car carriers ever built, and our commitment to ammonia as our fuel of choice, we are changing the game making significant strides toward our 2040 net-zero emissions goal," said Sebjørn Dahl, COO of Höegh Autoliners.

"With Fortescue, we are making the impossible possible, actively changing the perception of deep-sea shipping and ensuring that we are ready to sail on green ammonia around the world from 2027."