Ammonia

Infineum explores ammonia as viable zero carbon bunker fuel

Infineum explores ammonia as a zero carbon marine fuel, challenges across the marine industry supply chain and shares the safe practices Infineum is adopting in its research programme.

Published

1 year ago

December 14, 2023

Admin

Infineum Business Transformation Manager Toby Stein on Tuesday (12 December) released an article exploring ammonia as a viable zero carbon bunker fuel, the challenges across the marine industry supply chain related to its safe storage, bunkering and consumption and shares the safe practices Infineum is adopting in its research programme:

In July 2023, to ensure greenhouse has (GHG) emissions from international shipping do not continue to rise, IMO adopted its revised GHG strategy, which calls for a reduction in CO2 emissions of at least 40% by 2030 and 70% by 2040 compared to 2008. The new levels of ambition also call for the uptake of zero or near zero GHG technologies/fuels/energy sources to represent at least 5% of the energy used by international shipping in 2030. These initiatives are in pursuit of IMO’s net zero by 2050 ambition and to achieve them action must be taken today.

Throughout 2023, fuel consumption reporting for the IMO carbon intensity indicator (CII) has been underway. Ships will receive their first rating from A to D in January, vessels rated D for three consecutive years or rated E must develop and implement corrective actions to achieve the minimum C rating.

In the near term, industry attention is focussed on the most cost effective and easy to implement ways to gain and retain a C or better CII rating.

In addition, with sustainability and net zero ambitions being published by organisations across the marine industry supply chain, the adoption of lower emissions pathways is becoming the key focus of the entire industry.

Reducing carbon today

As we have seen in other transportation modes, the use of low carbon energy sources is an effective GHG reduction strategy. While the marine world is considering a wide range of technical and operational decarbonisation options, fuel selection has some of the greatest potential to reduce GHG emissions in this sector. Currently a range of alternative fuel options are being explored, although each has its own set of challenges and in some cases deeper investment is required in the commercialisation, supply chain and refuelling infrastructure. In the short term, we can expect an uptake of already available lower carbon fuels, such as biofuels, LNG/LPG, ethanol and methanol as the industry transitions towards net-zero.

Given the need for shippers to improve efficiency, reduce running costs, while also ensuring reliable operation, Infineum has invested in the development of marine additive technologies.

Fuel combustion and lubricity improvers, wax and asphaltene management additives and an additive package for 40 BN (base number) marine diesel cylinder lubricants (MDCL) meeting MAN ES category II lubricant standards, have been designed to help create a more sustainable future through innovative chemistry.

A zero carbon future

As we look further ahead, the need to work towards net zero emissions from international shipping by 2050 means other energy sources must be considered.

The three most suitable ultra-low/zero-carbon options for the marine industry are green hydrogen, green ammonia and green methanol – with the latter in use today and ammonia looking to be the most promising zero carbon option. This is largely owing to its comparatively higher energy density and the wealth of existing knowledge on ammonia handling, storage and safety and the existing infrastructure. Two-stroke large engine OEMs, such as MAN ES and WinGD, have signposted their new engine designs and retrofitting strategies to enable ammonia adoption. For example, in July MAN ES announced its successful first running of a two-stroke test engine on ammonia at its Research Centre Copenhagen. The organisation says it broadly expects to hold its delivery timeline for the first ammonia engine, with subsequent operation onboard a commercial vessel from around 2026. In October, Exmar LPG BV announced it will have the first ocean going vessels to be propelled by dual fuel ammonia engines. Engine supplier WinDG says the engines for these two LPG/ammonia carriers will be delivered in Q2 2025 and will be among the first of WinGD’s ammonia-fuelled engines to enter service.

We are also seeing more initiatives to create Green Corridors, which are specific shipping routes where the economics, infrastructure, and logistics of zero- or near-zero emission shipping are more feasible and rapid deployment can be supported by targeted policy and industry action. In its 2022 report on progress, the Global Maritime Organisation says 21 initiatives have emerged around the world. More than 110 stakeholders from across the value chain are engaged in these initiatives, and a significant level of public-private collaboration can be seen. One major example is the Australia-East Asia iron ore trade route where it is thought that ships powered by green ammonia could be deployed by 2028.

And, it’s not only the marine industry that is looking at ammonia as a fuel, there is also growing interest in ammonia as a carbon free fuel for combustion engines used in power generation as well as in mining and long-haul vehicle applications.

Ammonia - a challenging fuel

Clearly there are advantages to using ammonia, but we can also anticipate a number of new and complex challenges across the marine industry supply chain related to its safe storage, bunkering and consumption. The key concern is that ammonia is extremely toxic to humans, posing a danger to those who handle, store and use the chemical.

m21595 inf insight ammonia table dec 23 1

With technology in the marine world in the early stages of development and testing, there is limited operational experience of ammonia fuelled vessels – which makes definitive answers on safety hard to obtain. However, valuable insights from its use in adjacent industries, for example industrial refrigeration and fertilizer production, along with feasibility studies and safety assessments of proposed vessel designs will help to guide the industry on this journey.

Lloyd’s Register, a leading provider of classification and compliance services to the marine and offshore industries, has identified safer designs, risk assessment and mitigation as paramount in enabling ammonia adoption by the marine sector.

In a report resulting from a collaboration between the Lloyd’s Register Maritime Decarbonisation Hub and the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping, onboard safety risks of ammonia have been assessed. They have concluded that the risks can be kept within tolerable limits provided the industry can:

Ensure suitable and sufficient technical barriers (e.g. ventilation, automation) and administrative safeguards (e.g. personal protection equipment (PPE), safe work practices) are implemented to protect the crew from ammonia risks.
Address human factors – e.g. provide specific training/upskilling for operation and maintenance on board and to any personnel other who will interface with the ammonia-powered vessel.
Build upon existing maritime experience with gas and carry over learnings from other industries regarding safety handling and storage of ammonia.

With the insightful recommendations and findings from this study, the maritime sector can proactively steer regulatory frameworks, industry guidelines, and best practices towards ensuring that ammonia-fuelled vessels meet acceptable safety standards for crew members.

Sharing safety learnings

Infineum is actively working to understand the hardware and lubrication issues associated with ammonia use in marine vessels. Since safety is the key industry concern at this stage of its deployment, we started our own ammonia studies from a position of safe handling.

Combining previous experience of using ammonia in a laboratory with external inputs on handling ammonia, we developed a series of engineering and administrative mitigations regarding its use. These are designed to ensure safe environments for our operators using ammonia in both bench and engine tests.

Drawing parallels with the concerns faced by crew members aboard ammonia-powered vessels, our operators must have a comprehensive understanding of the associated risks and be equipped with essential safety protocols to troubleshoot any potential technical issues that may arise during the operation of test rigs. While the handling of ammonia may not markedly differ from the handling of other hazardous chemicals encountered in a laboratory, along with robust engineering safeguards, the critical emphasis remains on the operator’s vigilance and their proactive approach to safety.

The engineering and administrative mitigations implemented are strongly aligned with Infineum’s commitment towards employees’ safety. We believe that anyone working for Infineum has the right to return home at the end of each day in the same state of health and wellbeing as they began it, and that all incidents, injuries, and occupational illnesses are preventable.

But, we want to go beyond our own area of operations and have taken steps to share our safety practices and insights with customers, OEMs and with others as they embark on testing ammonia as a fuel. In our view, the implementation of safe handling measures across all relevant sectors will accelerate ammonia adoption and research in a safe manner.

Future directions

Our next ammonia feature in Insight will look in more depth at the commercialisation of ammonia powered vessels. We will also explore the in-use challenges the fuel presents to lubricants, the technical barriers that need to be overcome to ensure harms free ship operation, the development and testing work Infineum has undertaken already and the future directions we anticipate

Photo credit: Venti Views on Unsplash / Infineum
Published: 14 December, 2023

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Bunker Fuel

Revitalising JCT Oil Bank will be key to unlock Sri Lanka potential in bunkering

Dr. Prabath Weerasinghe, a Senior Lecturer at University of Ruhuna, says analysts predict the country can generate about USD 5 billion annually from bunker fuel operations by 2030 if improvements are made to JCT Oil Bank.

Published

4 days ago

January 9, 2025

Admin

Dr. Prabath Weerasinghe, a Senior Lecturer of the Department of Electrical and Information Engineering Faculty of Engineering at University of Ruhuna, shared that analysts predict the country can generate about USD 5 billion annually from bunker fuel operations by 2030 with a focused investment and improvements to Jaya Container Oil Bank Terminal (JCT Oil Bank):

Sri Lanka, strategically positioned on one of the busiest maritime routes in the world, holds immense potential to become a leading regional bunkering hub. Experts suggest that with targeted infrastructure upgrades and strategic policy initiatives, the country can generate nearly USD 5 billion annually from bunker fuel operations by 2030. The key lies in revitalising the Jaya Container Oil Bank Terminal (JCT Oil Bank) to match regional standards and meet the growing global demand for efficient bunkering services.

The Jaya Container Oil Bank Terminal, once seen as a critical asset for Sri Lanka’s maritime economy, has faced years of neglect, underutilisation, and inadequate capacity expansion. Despite its strategic location adjacent to the busy Port of Colombo, the terminal operates well below its potential. Competitors like Singapore, Fujairah, and Indian ports have surged ahead, offering large-scale fuel storage facilities, efficient refuelling systems, and world-class operational infrastructure.

The lack of consistent investment, outdated technology, and limited storage capacity at JCT Oil Bank has deterred major shipping lines and bunker operators from considering Sri Lanka as their preferred choice for refuelling.

The USD 5 Billion Vision

With global shipping volumes projected to grow steadily, the demand for bunker fuel is expected to rise exponentially. Analysts predict that with focused investment in the JCT Oil Bank Terminal, Sri Lanka could capture a significant share of the Indian Ocean bunkering market, generating approximately USD 5 billion annually by 2030.

Key improvements required to achieve this goal include:

Increased Storage Capacity: Expanding storage facilities to accommodate both conventional and sustainable fuels like LNG and biofuels.
Enhanced Distribution Networks: Modernising fuel delivery systems to reduce refuelling times and increase efficiency.
Policy and Regulatory Clarity: A transparent and investor-friendly policy framework to attract global players.
Technological Upgrades: Adoption of digital systems to streamline inventory management and improve transaction transparency.

Regional Competition: The Need for Urgency

Regional competitors like Singapore have set benchmarks in bunker fuel supply, handling nearly 50 million metric tons of bunker fuel annually. Ports in India, UAE, and Malaysia are also scaling up their bunkering capacities with substantial government backing. If Sri Lanka delays infrastructure upgrades, it risks losing market share to these emerging competitors.

Government and Private Sector Collaboration

Achieving this ambitious target requires strong collaboration between the government and private sector stakeholders. Private investment in storage infrastructure, technology integration, and distribution systems will play a crucial role. Simultaneously, the Sri Lanka Ports Authority (SLPA) must ensure that red tape is minimised, and strategic policies are implemented effectively.

The International Maritime Organisation (IMO) has set strict emission targets for the shipping industry. As a result, the demand for clean fuels like LNG, biofuels, and green ammonia is expected to rise significantly. If Sri Lanka can position the JCT Oil Bank Terminal as a hub for sustainable fuel distribution, it will secure a long-term competitive advantage in the global bunkering market.

The Roadmap to 2030

Short-term (2024-2026): Immediate expansion of storage capacity and improvement of refuelling facilities.
Medium-term (2026-2028): Adoption of advanced technologies and digital systems for seamless operations.
Long-term (2028-2030): Integration of sustainable fuel infrastructure and establishment of global partnerships.

Sri Lanka stands at a critical juncture. The Jaya Container Oil Bank Terminal is not just a piece of infrastructure—it represents a multi-billion-dollar economic opportunity. With the right mix of policy direction, strategic investment, and sustainable practices, Sri Lanka can re-establish itself as a leading bunkering hub in the Indian Ocean.

If the government prioritises the revival and expansion of the terminal, the country could unlock an annual revenue stream of USD 5 billion by 2030, boosting foreign exchange reserves, creating employment opportunities, and driving long-term economic stability. The time to act is now—delays will only allow regional competitors to widen the gap further.

Photo credit: Chathura Anuradha Subasinghe on Unsplash
Published: 9 January, 2025

Alternative Fuels

Clarksons: Alternative-fuelled ships represented 50% of tonnage ordered in 2024

‘With overall newbuild order volumes reaching their highest level since 2007, alternative fuel has continued to play a prominent role representing 50% of all tonnage ordered in 2024,’ says Steve Gordon.

Published

7 days ago

January 6, 2025

Admin

Clarksons Research on Friday (3 January) released their latest Green Technology Tracker, including full year 2024 data points, charting the progress of alternative bunker fuel uptake and investments in energy saving technologies across the global shipping fleet.

Summarising the latest Tracker, Steve Gordon, Global Head of Clarksons Research, commented: “With overall newbuild order volumes reaching their highest level since 2007, alternative fuel has continued to play a prominent role representing 50% of all tonnage ordered in 2024.

Across 2024, we have reported 820 vessels ordered of 62.2m GT involving alternative fuel capability (727 orders of 52.1m GT excluding LNG Carriers), a record level of investment.

There has been a return to LNG dual fuel technology dominating (accounting for 70% of alternative fuelled tonnage ordered excluding LNG Carriers, up from 43% in 2023, with methanol declining to 14% share from 30%). Overall, we have reported orders for vessels capable of using either LNG (390 orders, 297 excluding LNG Carriers), methanol (118 orders), ammonia (25 orders), LPG (72 orders) or Hydrogen (12 orders).

Additionally orders involving “ready” status have increased to around a fifth of all orders (452 orders, 21% of tonnage ordered). Across the fuel types, ammonia and methanol have been prominent as alternative fuel “ready” choices (ammonia: 130 orders, methanol: 320).

Outside vessel segments that can utilise cargo (100% of LNG Carrier tonnage ordered in 2024 was LNG dual fuel capable, VLGC/VLAC/VLEC: 90% LPG/ethane/ammonia dual fuel), the 12,000+ TEU Containership segment (71% LNG, 17% methanol) and Car Carriers (78% LNG, 21% methanol) had the highest levels of alternative fuel order adoption in 2024. Meanwhile, the lowest share of alternative fuel uptake in 2024 came in sectors such as Ultramaxes (4%), Handysize (4%) and MR Tankers (1%).

With the confirmed orderbook (~50% of orderbook tonnage is today alternative fuelled) and projected investment in the coming years, we forecast that over a fifth of all fleet capacity will be alternative fuel capable by 2030 (2017: 2% of fleet capacity “on the water”, 2024: 8%, 2030(f): >20%).

Investments in port infrastructure and the availability of “green” fuels continue to lag, with our Green Technology Tracker detailing 276 ports with LNG bunkering and 275 ports with shore power connection in place or planned but only 35 ports with methanol bunkering available and planned.

With an ageing fleet (13.1 years on a GT weighted basis, up from a low of 9.7 years in 2013), around on third of fleet capacity rating D or E under CII last year and lengthening lead times (~3.7 years) at major shipyards, retrofitting of Energy Saving Technologies (ESTs) remains a crucial part of shipping’s decarbonisation pathway.

Significant Energy Saving Technologies (ESTs) have been fitted on over 10,360 ships, accounting for >37% of fleet tonnage: this includes propeller ducts, rudder bulbs, Flettner rotors, wind kites, air lubrication systems and others (>580 ships with air lubrication system and >145 units involving “wind” assistance in the fleet and orderbook). Our tracker also includes 37 vessels in the fleet (plus 12 newbuild orders) testing onboard carbon capture technology. And the share of fleet that is fitted with an “Eco” engine has risen to over 34%.

We now estimate that shipping’s global GHG emissions will have increased by ~4% y-o-y in 2024 to over 1 billion tonnes of CO2e on a WTW basis and have moved above pre Covid-19 levels, with a higher proportion of time being spent at sea (amid Red Sea re-routing), some increases in speed (especially in the container market, albeit we project the underlying long term trend for declining speed will continue) and trade growth offsetting the growing share of alternative fuelled vessels, “eco” ships and tonnage with ESTs.”

Photo credit: Venti Views on Unsplash
Published: 6 January, 2025

Alternative Fuels

LR: 600 vessels capable of using alternative bunker fuels ordered in 2024

New orders grew the total orderbook by more than 50%, to 1,737 vessels while in-service alternative-fuelled fleet also grew strongly, up 18% to 1,860 vessels.

Published

1 week ago

January 3, 2025

Admin

Shipowners continued to invest for a future of lower emissions in 2024, with 600 vessels capable of using alternative fuels ordered until 13 December, according to classification society Lloyd’s Register (LR) on Thursday (2 January).

The new orders grew the total orderbook by more than 50%, to 1,737 vessels.

The in-service alternative-fuelled fleet also grew strongly, up 18% to 1,860 vessels. Combined with current orders, the fleet will stand at 3,597 – around 4.8% of all vessels in service and on order.

But with the IMO’s 2030 target on zero and near-zero emission energy use crossing the five-year horizon, orders will need to accelerate further to meet the required 5-10% of shipping’s energy consumption.

“These numbers show the significant effort the industry is making to reach net-zero emissions,” said James Frew, Business Advisory Director, at LR.

“As the maritime transition towards decarbonisation advances, the next steps will require greater alignment between industry ambitions, regulatory measures and, crucially, incentives to rapidly grow global production capacity for the alternative fuels shipping will need.”

Methanol-fuelled vessels led the way amongst new fuels, with 119 orders adding more than a third to the existing orderbook. In early 2024 LR, which classed the very first methanol conversion in 2015 – the ro-pax Stena Germanica – was appointed to support and class Stena Line’s next two fast ferry conversions.

It also teamed up with Danish alternative fuel specialist Green Marine to deliver training and consultancy around methanol fuel, helping to deliver the skills needed to make alternative-fuelled vessel operation a reality.

Ammonia-fuelled vessel orders more than doubled compared to the previous year, to 22 vessels. In 2025 the first ammonia-fuelled marine engines will be delivered, with a further surge in orders likely as the industry gains experience with the carbon-free fuel.

As illustrated in LR’s Fuel For Thought report on ammonia published in March 2024, securing the safety of ammonia-fuelled ships through design, training and regulation will be crucial to maximise any opportunity for decarbonisation.

Hydrogen fuel also consolidated its appeal within relevant vessel segments, with orders for 12 more vessels in 2024. Two hydrogen-powered passenger ferries ordered by Norwegian transport company Torghatten Nord are set for LR class, while a memorandum of understanding with H2Terminals, HiDROGEN and D3IM was signed to assess the feasibility of a green hydrogen infrastructure project in the UK. LR also granted AiPs for several new hydrogen vessels, including ferries and tugboats.

Photo credit: william william on Unsplash
Published: 3 January, 2025