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Lynn Loo, chief executive of the Global Centre for Maritime Decarbonisation,
says she is not the ammonia lady. She is a woman who wants to decarbonise
shipping safely and quickly. Photo: GMF


GREEN SEAS: AMMONIA LOOKS FEASIBLE FOR SOME SITUATIONS, IF THE SAFETY WORRIES
CAN BE IRONED OUT

Our weekly environment newsletter explores the contours of ammonia’s
feasibility, safety questions aside, in a multi-fuel future for shipping

 * Related news


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 * PODCAST: WHY AUSTRALIA IS MAKING SUCH A STINK ABOUT STINK BUGS ON SHIPS
   
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   12 May 2023 5:45 GMT


 * TRAFIGURA’S RASMUS BACH NIELSEN TAKES HELM OF SEA CARGO CHARTER TO ‘PUSH
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 * WILSON SONS CUTS GREENHOUSE GAS EMISSIONS AS GENDER BALANCE IMPROVES
   
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   8 May 2023 20:07 GMT

17 May 2023 12:45 GMT Updated  17 May 2023 12:45 GMT
By Eric Priante Martin

 in    Miami 

Let us assume for a minute that safety and technical hurdles are not an issue
when it comes to using ammonia as a fuel for shipping. (Don’t worry, we’ll get
back to safety, because that is not to say that it is not essential to the
discussion.)

Assuming these challenges will be overcome, ammonia may provide a zero-carbon
pathway for shipping, but one that may not work in every circumstance in a
future that involves a variety of fuels.

Just ask the woman who does not a want to be called “the ammonia lady”.

Green Seas: A podcast by TradeWinds · Stars align for ammonia fuelling by 2026,
but that s just the beginning

After a LinkedIn post in which Global Centre for Maritime Decarbonisation chief
executive Lynn Loo said she was given that moniker twice in a week, ACUA Ocean
chief operating officer Mike Tinmouth said in a comment that he believes ammonia
will be applicable in a fuel in only 20% of marine situations.

“I agree it will be use-case specific and we are headed from an already
heterogeneous fuel mix … to an even more heterogeneous fuel mix,” Loo responded,
pointing to today’s mix including low-sulphur fuel oil, marine gasoil and LNG.

TradeWinds reported this week that a feasibility study by a Global Maritime
Forum-backed consortium found that, if safety and technical hurdles are
overcome, one situation where ammonia may play a role is the iron ore trade from
Western Australia to China and Japan.

Article continues below the advert


The West Australia-East Asia Iron Ore Green Corridor Consortium is made up of
four of the major players on that benchmark trade: miners BHP and Rio Tinto,
bulker operator Oldendorff Carriers and shipowner Star Bulk Carriers.

The report, which follows a pre-feasibility study that identified ammonia as a
candidate for the proposed green corridor, found that it could be possible to
get large bulkers on the water that can use fuel by 2028.


360 SHIPS BY 2050

Scaling that up to 23 vessels powered by green ammonia in 2030, 91 in 2035 and
360 in 2050 to achieve full decarbonisation could be feasible, if the right
economic conditions are in place and shipyard slots are available. Enough ships
are slated for retirement that there will be limited need for retrofits or early
scrapping, the consortium said.

Where will those ships get green ammonia? After all, the ammonia widely
available today has no carbon in it but has greenhouse gas emissions in its
supply chain, so these vessels would need a cleaner version of the fuel made
from green hydrogen to achieve full decarbonisation.


The 209,000-dwt Helga Oldendorff (built 2016) unloads iron ore in March 2021.
The newcastlemax bulker is owned by Oldendorff Carriers. Photo: Oldendorff
Carriers

Australia has much of the answer.

The iron ore export hub of Pilbara alone is poised to have 9m tonnes of green
ammonia available by the 2030s, out of 52m tonnes across the country. Imported
ammonia from the US, Chile and the Middle East could add to the mix, the
initiative found.


THERE SHOULD BE ENOUGH

“Enough clean ammonia will likely be available to meet the corridor’s near and
long-term requirements, even when accounting for demand from other sectors and
uncertainties,” the consortium said in the feasibility report.

Singapore and Pilbara could both serve as bunkering hubs, the study found.


Port Hedland is a key port in the Pilbara region. Photo: Pilbara Ports Authority

But the safety question remains a key hurdle, given ammonia’s toxic properties.

Scott Bergeron, managing director for global engagement and sustainability at
Oldendorff, and Star Bulk chief strategy officer Charis Plakantonaki both
mentioned the need to tackle safety challenges even though those topics were
deliberately outside the scope of the report.


TECHNICAL ADVANCES

As the Green Seas podcast has reported, engine manufacturers and classification
societies are optimistic that the hurdles will be overcome, with the first
ammonia-fuelled ships expected in 2026.

Trafigura’s Rasmus Bach Nielsen takes helm of Sea Cargo Charter to ‘push green
transition forward’
Read more

But asked whether he shared that sentiment, Bergeron said it is not a question
of optimism but rather a call to action to address the issues.

“We were passionate about the safety of our crew, and the personnel at the
terminals where our ships operate,” he told Green Seas. “We’re not willing to
wish or assume the significant safety concerns of ammonia away.”

Plakantonaki said that for New York-listed Star Bulk to feel comfortable enough
to order an ammonia-fuelled vessel, safety is the first consideration.

“Standards on the handling and storage of ammonia as marine fuel, as well as
emergency response and training protocols, are yet to be developed,” she said.

“Then, we need to see the ammonia engine coming into the market, and the
ammonia-powered ship designs being approved. Infrastructure investments also
need to be made for the fuel to become available at scale.”

Finally, long-term charters are necessary to help cover the higher cost of
ammonia-fuelled vessels, she told Green Seas.

The Global Centre for Maritime Decarbonisation’s Loo said in her LinkedIn post
that, despite the work by her organisation on ammonia, it is not an advocate for
the fuel but is working to fill the gap that exists about safely using it in
shipping.


SAFETY REQUIRED

“We see engines being developed, ship designs being approved, tugboats being
retrofitted etc,” she said in a post replete with emojis (which I hopefully
render properly on whatever platform you are reading this newsletter).

“But these efforts won’t see the light💡of day unless we figure out how to
safely move and transfer the molecule as a fuel. 🚢”

Among the questions the centre is looking to answer are:

 * Under what circumstance can ammonia be transferred in crowded ports?
 * What training is needed for crew to carry out ammonia fuelling operations?
 * What emergency response procedures are needed if there is a leak?

She said the goal is to speed along shipping’s energy transition to push the
emissions curve downward. And she wants a different nickname.

Loo wrote: “As opposed to the ammonia lady, call me the lady in a
hurry.🏃🏻‍♀️🏃🏻‍♀️🏃🏻‍♀️”

______________


PODCAST: WHY AUSTRALIA IS MAKING SUCH A STINK ABOUT STINK BUGS ON SHIPS

In general, things are going well for operators of vehicle carriers. The ships
that carry cars and trucks from their manufacturers to their markets have been
commanding record freight rates.

Even though economic clouds have softened the automobile market, vessel capacity
remains tight, with few orders at shipyards threatening to bring new car
carriers into the market.

But since the start of this year, there has been one major problem: congestion
at ports in Australia caused in part by efforts to prevent a pest with an
unpleasant sounding name from entering the country.

Green Seas: A podcast by TradeWinds · What s all the stink about stink bugs in
shipping?

Next week’s episode will explore the environmental dangers of sanctions-busting
oil transfers. Subscribe to the podcast on Google Podcasts, Apple Podcasts,
Stitcher, Pandora, Spotify or SoundCloud to get it on your mobile device.

______________



BP EXECUTIVE SAYS SHIPPING HYDROGEN WILL NOT MAKE ECONOMIC SENSE UNTIL
‘TECHNOLOGY ADVANCES’

It does not make economic sense to ship clean hydrogen from country to country,
and the industry should initially focus on replacing existing uses of grey
versions of the commodity, according to BP’s senior vice president for hydrogen
and carbon capture and storage.

Felipe Arbelaez said clean hydrogen “has a vital role to play in cutting
emissions, especially in sectors like cement, steelmaking and chemicals… and for
heavy transport — trucks, ships and aircraft”, according to Hydrogen Insight.

He then discussed three “lessons” he had learned in his role at BP.

“The first thing I’ve learned is that our collective efforts should be initially
focused on going after industrial use of hydrogen,” Arbelaez said.

Click here to read the story.

______________



METHANOL FIRST-MOVER MAERSK TO SPLASH $1.4BN ON NEO-PANAMAX CONTAINER SHIPS

AP Moller-Maersk’s plummeting profit is not stopping the company investing in
new ships.

It is poised to order a series of methanol-fuelled neo-panamax newbuildings that
will cost at least $1.38bn.

Shipbuilding players said Maersk has signed a letter of intent with China’s
Yangzijiang Shipbuilding for eight firm 8,000-teu container ships, with four
options.

Click here to read the story.

READ MORE

 * Editor’s Selection: Clarksons’ pay problem, passing the buck on Pablo and
   Japan mourns titan’s death
 * Podcast: Why Australia is making such a stink about stink bugs on ships
 * Trafigura’s Rasmus Bach Nielsen takes helm of Sea Cargo Charter to ‘push
   green transition forward’
 * Wilson Sons cuts greenhouse gas emissions as gender balance improves
 * Green Seas: How companies are tackling an ocean-size gap in data about the
   sea

Technology
Ammonia
Green Seas
Decarbonisation
greenhouse gas emissions
Global Centre for Maritime Decarbonisation
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