On October 28, 2024, at Dampier, Western Australia, a significant milestone was achieved in the shipping industry as shippers completed the first transfer of ammonia between vessels. This event marks a critical step in evaluating ammonia as a potential marine fuel, aimed at reducing the sector's carbon footprint, which currently contributes nearly 3% of global emissions.
The introduction of ammonia-powered cargo ships is projected for 2026, although the fuel faces substantial cost and safety challenges. Compared to alternatives like liquefied natural gas (LNG) and methanol, ammonia's adoption is hindered by its toxicity and the lack of regulatory frameworks governing its use in maritime operations.
Laure Baratgin, head of commercial operations at Rio Tinto, emphasized the necessity for enhanced safety measures before the company commits to chartering ammonia-fueled vessels. Currently, only 25 ammonia dual-fuel ships have been ordered globally, significantly fewer than the existing fleets of LNG and methanol vessels.
Ammonia's dangerous properties pose unique risks, particularly during refueling operations, with potential for acute poisoning and environmental hazards. The Global Centre for Maritime Decarbonisation has identified 400 risks related to ammonia bunkering, advocating for stringent safety protocols.
Despite the challenges, industry experts predict that ammonia could represent one-third of marine fuel by 2050, contingent on overcoming current safety and cost barriers. The American Bureau of Shipping highlights that significant reductions in ammonia's cost will be essential for its competitiveness in the marine fuel market.