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DNV on ammonia as a marine fuel: Prospects and challenges

DNV offers a concise summary of key developments in ammonia as a marine fuel, highlighting the opportunities and challenges ahead.

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In a recent Maritime Impact article, classification society DNV offered a concise summary of key developments in ammonia as a marine fuel, highlighting the opportunities and challenges ahead: 

Ammonia is gaining traction as a marine fuel, backed by regulatory progress, engine innovation and early fleet adoption. Due to high costs and infrastructure gaps, shipowners are advised to plan strategically when choosing the right future fuel. How far and fast ammonia as an alternative fuel can propel shipping decarbonization is examined in the DNV paper Ammonia in Shipping.

“The around 40 ammonia-capable ships on order put ammonia firmly in the decarbonization race,” says Linda Sigrid Hammer, Principal Consultant, Environment Advisory at DNV and lead author of the paper. 

“Across most barriers significant advancements have been made in the last five years, while challenges remain.” DNV’s paper analyses what it will take to get ammonia-fuelled ships approved, how to speed up the process, and practical steps for shipowners.

The paper identifies and discusses the remaining hurdles and presents them in a dashboard showing change in the status quo for ammonia fuel in 2025 compared with 2020.

Ammonia fuel rules progress

Ammonia’s toxicity requires stricter safeguards than conventional fuels. In 2020, approvals relied on risk-based case studies.

Since then, a combination of new DNV rules introduced in 2021 and updated annually and IMO interim guidelines launched in 2024 have given designers a regulatory framework to work with until binding Code amendments enter into force.

Amendments to the IGC Code (International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk) allow ammonia carriers to use cargo as fuel, with draft interim guidelines recently finalized. Binding amendments to the IGF Code (International Code of Safety for Ship Using Gases or Other Low-flashpoint Fuels) are unlikely before 2032, however.

Ammonia propulsion gains ground

Five years ago, ammonia propulsion was conceptual. By August 2025, 39 ammonia- capable ships, mainly ammonia carriers and bulkers, were on order. By late 2025 or early 2026 we will also see the first deliveries of new vessels capable to burn ammonia.

Engine developers are committed. Everllence, WinGD and J-Eng are delivering dual-fuel two-stroke engines from 2025/2026, while Hyundai’s HiMSEN H22CDF-LA four-stroke has multi-class approval. Demonstrations, including Fortescue’s Green Pioneer and ammonia-fuelled tugs in Japan and China, prove operational feasibility.

Fuel-system solutions are also emerging, such as Wärtsilä’s integrated package and Alfa Laval’s FCM Ammonia. The sector has moved from theory to deployment.

How to manage ammonia’s energy density issues

Ammonia requires nearly triple the volume of marine gas oil for the same energy, reducing range and cargo space. But design strategies, dual-fuel capability and shorter bunkering intervals make the challenge manageable.

Naval architects now weigh trade-offs between capacity, range and bunkering.

“The severity of this barrier depends heavily on ship type and trading pattern,” says Hammer. “For liner services and vessels with deck space, solutions are easier. The space issue is now seen as a manageable design problem rather than a showstopper.”

High costs and fuel gaps slow ammonia adoption

Ammonia-fuelled newbuilds still typically cost 15–20% more than conventional designs, and for some retrofits even more. Although high, the additional cost remains within feasible limits, assuming other market conditions provide sufficient incentives.

Ammonia in Shipping reports studies suggest a 16% premium for a large containership, +19% for an Aframax tanker, and +15% for midsize gas carriers, while retrofitting older bulkers can be prohibitively costly at up to 60% of remaining ship value.

“Uncertainty on cost has narrowed as designs mature, but shipyards often add risk premiums for bespoke projects. Costs should fall as production scales and designs standardize, but the capital expenditure barrier is roughly as high as in 2020,” observes Hammer. “Even if ships are ready, the toughest challenges hinge on the cost barrier, in particular the fuel cost, which remains too high.”

Note: The full article by DNV can be found here. 

Related: DNV report: Ammonia shows notable progress as bunker fuel but barriers remain

 

Photo credit: CHUTTERSNAP on Unsplash
Published: 7 October, 2025

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Alternative Fuels

KR, HD Hyundai tap first ammonia dual-fuel sea trial to develop vessel operating standards

Trial generated data on the vessel’s fuel supply system and engine, which will provide a technical foundation for KR’s future development of domestic guidelines for ammonia-fuelled ships.

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July 17, 2026

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KR, HD Hyundai tap first ammonia dual-fuel sea trial to develop vessel operating standards

Korean Register (KR) on Tuesday (14 July) said it is collaborating with HD Hyundai Heavy Industries (HHI) to establish a domestic operating environment for ammonia-fuelled vessels under the Ministry of Oceans and Fisheries’ Green Shipping Corridor Construction Support Project. 

The initiative supports the development of ammonia as one of the most promising next-generation marine fuels.

HHI recently conducted a sea trial of Korea’s first ammonia dual-fuel propulsion vessel. The trial generated operational data on the vessel’s fuel supply system and engine, which will provide a valuable technical foundation for KR’s future development of domestic guidelines for environmentally friendly vessel operations and supporting wider maritime decarbonisation efforts.

A spokesperson for HD Hyundai, said: “Drawing on our group’s R&D capabilities and on-site technical expertise, we have made meaningful progress in advancing the application of ammonia as a marine fuel. We expect this to help enhance a sustainable maritime ecosystem while strengthening the competitiveness of Korea’s shipbuilding industry.”

Kim Daeheon, Executive Vice President of KR’s R&D Division, added: “The close collaboration between KR and HD Hyundai has enabled us to build the technical foundation for introducing ammonia-fueled vessels in Korea. We will continue to drive national projects forward together with HD Hyundai and establish technical standards befitting the era of Green Shipping Corridors.”

 

Photo credit: HD Hyundai Heavy Industries
Published: 17 July, 2026

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Bunker Fuel

Singapore: Bunker fuel sales up by 1.6% on year in June 2026

4.67 million mt of various marine fuel grades were delivered at the world’s largest bunkering port in June, up from 4.59 million mt recorded during the similar month in 2025.
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July 15, 2026

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Sales of marine fuel at Singapore port increased by 1.6% on year in June 2026, according to data from the Maritime and Port Authority of Singapore (MPA).

In total, 4.67 million metric tonnes (mt) (exact 4,669,100 mt) of various marine fuel grades were delivered at the world’s largest bunkering port in June, up from 4.59 million mt (4,594,700 mt) recorded during the similar month in 2025.

Deliveries of marine fuel oil, low sulphur fuel oil, ultra low sulphur fuel oil, marine gas oil and marine diesel oil in June (against on year) recorded respectively 2.03 million mt (+19.4% from 1.70 million mt), 2.20 million mt (-4.8% from 2.31 million mt), zero (-100% from 1,900 mt), 1,900 mt (-57.8% from 4,500 mt) and zero (from zero).

Bunker Jun

Bio-blended variants of marine fuel oil, low sulphur fuel oil, ultra low sulphur fuel oil, marine gas oil and marine diesel oil in June, (against on year) recorded respectively 5,300 mt (-86.3% from 38,800 mt), 30,700 mt (-73.1% from 114,300 mt), zero (from zero), zero (from zero) and zero (from zero). B100 biofuel bunkers, introduced in February last year, recorded 1,500 mt (+50% from 1,000 mt). 

LNG and methanol sales were 55,000 mt (-0.72% from 55,400 mt) and zero (from zero) respectively. There were no recorded sales of ammonia for the month and so far since 2025.

 

Photo credit: Maritime and Port Authority of Singapore
Published: 15 July, 2026

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Ammonia

Peninsula and ITOCHU establish ammonia bunkering joint venture for European ports

I&P Marine Ammonia has been created to promote the supply of ammonia as a next-generation zero carbon bunker fuel, with an initial focus on major strategic European and Mediterranean hubs.

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July 9, 2026

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Peninsula and ITOCHU establish ammonia bunkering joint venture for European ports

Global marine energy supplier Peninsula on Wednesday (8 July) announced the establishment of I&P Marine Ammonia Ltd. (IPMA), a joint venture with ITOCHU Corporation, to accelerate the development of ammonia marine fuel bunkering across key European ports.

IPMA has been created to promote the supply of ammonia as a next-generation zero carbon marine fuel, with an initial focus on major strategic European and Mediterranean hubs. These locations represent critical regions in global maritime logistics and will play a central role in enabling the adoption of alternative fuels at scale.

The formation of IPMA builds directly on the Memorandum of Understanding (MoU) signed between Peninsula and ITOCHU in September 2023, which established a framework for the joint development of ammonia bunkering infrastructure and supply chains.

Manifold Times previously reported the European Commission (EC) approving the creation of a joint venture by ITOCHU and Peninsula under the EU Merger Regulation.

“Ammonia is widely seen as the most reasonable option among zero‑carbon marine fuel alternatives, supporting the shipping industry’s transition in line with increasingly stringent regulatory and environmental requirements,” Peninsula said.

“The creation of IPMA marks a significant step towards the commercialisation of ammonia as a marine fuel.”

Peninsula has been advancing the alternative fuels landscape, with established capabilities across LNG, Bio LNG, biofuels and other alternative solutions such as methanol and ammonia. This joint venture represents a natural progression of the company’s strategy to provide customers with practical, scalable decarbonisation pathways.

The partnership combines Peninsula’s global bunkering expertise, an established global supply network and deep customer relationships covering over 500 ports across all major bunkering hubs with ITOCHU’s integrated approach, spanning fuel production and supply chain development.

“Together, Itochu and Peninsula will combine these strengths to develop a robust ammonia bunkering framework, pairing upstream supply and infrastructure with the customer-facing expertise required to deliver ammonia as bunker fuel reliably at scale,” the company added. 

With an initial focus on Europe, IPMA is well positioned to accelerate the emergence of an operational ammonia marine fuel supply chain, complementing and reinforcing the broader industry initiatives already underway across the region.

Related: EC gives green light on Itochu-Peninsula ammonia bunkering joint venture
Related: Spain: Itochu, Peninsula enter MOU for joint development of ammonia bunkering in Gibraltar Strait

 

Photo credit: Peninsula
Published: 9 July, 2026

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