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DNV: Is there a business case for ammonia and hydrogen as an alternative bunkering fuel?

Cristina Saenz de Santa Maria, Regional Manager South East Asia, Pacific & India, Maritime at DNV, summarises a panel discussion with industry experts at SIBCON 2022.

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The following article was published by Cristina Saenz de Santa Maria, Regional Manager South East Asia, Pacific & India, Maritime at DNV, on Monday (10 October) through the social media platform LinkedIn; it has been reproduced on Manifold Times with permission from DNV:

Before there is a viable business case for alternative maritime fuels like ammonia and hydrogen, there’s a lot of work to do, according to a SIBCON panel of industry experts, I was happy to moderate last week.

My panellists Murali Srinivasan, Peter Liew, Raghav Gulati and Takahiro Rokuroda shared about the various ammonia and hydrogen projects their companies Yara International, Eaglestar, Anglo American and NYK Line are currently conducting, and drew attention to five main points in the discussion:

  • There is need for regulations and standards to be set for these fuels, so the International Maritime Organisation (IMO) must step up to the mark;
  • Technology around the new fuels is available and being put to the test in good pilot programmes around the world;
  • There is no real business case for ammonia and hydrogen without a carbon price or carbon tax being applied to fossil fuels;
  • To have a level playing field for alternative fuels, all stakeholders must collaborate and develop effective partnerships;
  • Safety is paramount, as while ammonia has been safely transported on vessels for a long time, it has not yet been applied as a bunkering fuel.

Many companies might know how to ship ammonia, but all stakeholders must make sure safety measures are in place for ammonia to be widely used as a bunkering fuel.

It was also pointed out that the industry must expedite the introduction of alternative fuels, like ammonia and hydrogen, but we cannot take as many years as was the case with LNG.

We all agreed that the industry must come together – collaborate and partners – to meet our collective commitments to decarbonise. Caution was expressed about concentrating on just one fuel. There must be a multi-fuel solution and vessels must be equipped accordingly.

Having the infrastructure in place to support a mix of fuels and making sure it is in the places where it’s needed, was a strong point raised by our panel.

Panellists sited many examples around the world where industry collaboration was taking place, but we need to see IMO stepping up to put in place the necessary regulations and standards for new bunkering fuels like ammonia and hydrogen.

We know that a number of maritime companies are clearly looking at all options when it comes to alternative fuels, but ammonia was coming up as one of the more realistic solutions.

For ship owners and operators, one of the biggest challenges is the toxicity of ammonia. Therefore, much needs to be done to ensure safety measures, technology and regulations are in place, and we in DNV will play our part in this process.

My esteemed panellists stressed the need to make sure crews are trained to handle ammonia, at ports and at sea. It was of utmost importance to start training crews and bunkering staff in time, not wait until the first ammonia and hydrogen fuelled vessels hit the water.

When I asked the panellists – “Like all other alternative fuels, ammonia and hydrogen will be much more expensive and according to DNV projections, at least two times more than current fuels. Is there a business case yet – and if not, what is needed?” – there was general agreement that “the business case is not yet there” for the adoption of ammonia and hydrogen as bunkering fuels.

An effective workable carbon price/tax on fossil fuels would help provide “a level playing field” for a transition to alternative clean fuels. One panellist also called for more incentives to drive the transition to cleaner fuels like ammonia and hydrogen.

Already there is considerable investment in renewable fuels, as well as in adapting ship and engine design to accommodate fuels like hydrogen and ammonia. However, more infrastructure and regulation are necessary, along with a greater degree of collaboration and co-operation involving all maritime stakeholders.

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As the world’s biggest bunkering hub, Singapore is already playing an important leadership role, joining forces with ports and other stakeholders around the world to advance maritime decarbonisation.

The Global Centre for Maritime Decarbonisation (GCMD) is an excellent example of public-private partnership, seeing collaboration at work between government authorities and industry. I’m very excited that we in DNV are leading the GCMD-commissioned ammonia bunkering safety study and I look forward to its results in Q1 2023.

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In conclusion, my panellists agreed that Singapore was providing many good initiatives of industry collaboration and partnerships for decarbonisation and adoption of alternative fuels, so the local cluster has every reason to be optimistic while helping the shipping industry accelerating on its Net Zero pathway.

Photo credit: DNV
Source: LinkedIn
Published: 12 October, 2022

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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