University of Amsterdam researchers complete feasibility study on ammonia as bunker fuel
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A group of researchers from the University of Amsterdam initiated a study on the benefits of using ammonia as marine fuel vs fuel oil for freight shipments, said Global Energy Association (GEA) on Thursday (12 June).
They wanted to understand if ammonia could really replace traditional bunker fuels, explained the Moscow-based non-governmental organisation dedicated to energy research and projects.
According to GEA, the Dutch researchers explored two options of the on-board power plant fired by ammonia: the internal combustion engine, and its combination with a solid oxide fuel cell (SOC).
They compared the full cost of ownership for such vessels vs the vessel using fuel oil with account of building costs, fuel costs and maintenance costs for 25 years of operation.
Results showed even in the most optimistic scenario, i.e., given high performance of the engine (up to 55 %) and low ammonia prices, the cost of ownership for such vessels will be 19–25 % more expensive vs the traditional one.
The main reason is high bunker fuel cost. The options with using fuel cells turned out to be even more expensive. They can be cost-effective only in case of extremely high fuel prices or poor performance of the internal combustion engine.
At the same time, the share of CAPEX for the vessel or fuel tanks turned out rather small: practically all the rise in cost is connected with the ammonia price.
The researchers concluded ammonia may be a robust alternative to fuel oil only under two conditions: significant decrease in ammonia prices and introduction of high carbon tax. Without subsidies, the ammonia prices need to be below 28 cents per kilo, or the fuel oil prices need to double (up to USD 1.4 per kilo), but this is possible only in case the carbon tax is USD 200 per one ton of CO₂.
Hence, according to the Dutch researchers, ammonia applications remain an interesting decarbonisation option, but practical use of this fuel will require not only a technological breakthrough, but also strict government regulation.
Photo credit: Venti Views on Unsplash
Published: 16 June 2025
