Green ammonia holds the potential to play a significant role in decarbonizing maritime transport if investors and operators are presented with a credible business model, a concept study being conducted by the Nordic Green Ammonia-Powered Ship (NoGAPS) consortium has concluded, Yara International ASA reported on June 2.
Yara is a participant in the NoGAPS consortium, which has elaborated a concept for a green ammonia-powered gas carrier, transporting ammonia as a cargo in Northern Europe and using zero-emission ammonia as a fuel.
“Understanding the technologies and business models needed to deliver zero-emission shipping is key,” said Global Maritime Forum Project Director Jesse Fahnestock. “The concept study examines the full value chain viability of powering ships with green ammonia. It finds that using green ammonia as a fuel is both practical and feasible.”
Fahnestock said focus should now be on measures that can strengthen the business case for zero-emission ammonia
Fürstenberg Maritime Advisory Partner Sofia Fürstenberg Stott said the NoGAPS study has helped to identify the most pressing problems and possible solutions for ammonia-powered, zero-emission shipping, from the perspective of the entire maritime value chain.
“The Nordic region is home to plentiful renewable energy, large-scale ammonia production, and some of the world’s leading shipping companies and engine manufacturers, and has an opportunity to build the full value chain for green ammonia-powered shipping on an accelerated timetable,” she said.
The Global Maritime Forum and Fürstenberg Maritime Advisory have partnered up to develop the NoGAPS project report, and which was made possible through collaboration with consortium project partners. These partners comprised BW Epic Kosan, Danish Ship Finance, DNB, DNV, MAN Energy Solutions, Wärtsilä, Yara International, and Ørsted, with co-funding from Nordic Innovation.
The consortium investigated the vessel, the fuel, and the fuelling options, as well as the business, financing, and policy considerations.
The NoGAPS study concluded that the potential of green ammonia-powered shipping to contribute to the decarbonization of the maritime sector is “significant,” and ammonia carriers present a logical starting point for demonstrating this potential.
It found that neither the technical considerations nor the associated regulatory approval for a green ammonia-powered vessel present major obstacles to putting the M/S NoGAPS on the water.
The study also concluded that ammonia synthesized from green hydrogen represents a credible long-term, zero-emission fuel.
However, NoGAPS believes the most important challenge to be overcome is to develop and demonstrate a business model that is credible in the eyes of investors and operators. Both the vessel design and the fuel sourcing strategy offer opportunities to reduce risks and costs in meaningful ways, it said.
Government support and public finance can both accelerate the short-term timetable for investment in demonstration and improve the outlook for long-term deployment of green ammonia as a shipping fuel, the study showed.
Due to the currently higher costs of green ammonia relative to conventional shipping fuels, the NoGAPS project report also outlines a number of measures and complimentary measures from governments that can strengthen the business case for green ammonia-powered shipping.