Keppel O&M, Maersk and other industry players to explore ammonia as marine fuel

THE world's largest container shipping and logistics company, A.P. Moller - Maersk, better known as Maersk, is exploring ammonia as an alternative marine fuel via a memorandum of understanding with several industry players such as Keppel Offshore & Marine (Keppel O&M), Fleet Management, Sumitomo Corporation and Yara International.

In line with the International Maritime Organization strategy to reduce carbon dioxide emissions by 2050, the group said it will be jointly conducting a feasibility study to establish the world's first green ammonia ship-to-ship bunkering in the port of Singapore.

The study will cover end-to-end supply chain of ammonia bunkering, including development of a cost-effective green ammonia supply chain, design of ammonia bunkering vessels, as well as related supply chain infrastructure.

Green ammonia, produced from renewable electricity, water and air without emitting carbon dioxide, was coined as "a future fuel to decarbonise global shipping" by Morten Bo Christiansen, vice-president and head of decarbonisation at A.P. Moller-Maersk.

"A dual fuel ammonia engine is currently under development, but for green ammonia to fuel our vessels in the future, we also have supply, infrastructure and safety-related challenges to solve, not least when it comes to bunkering operations," he said.

Keppel O&M said it will undertake the role of developing and designing ammonia bunkering and ammonia-powered vessels, as well as lead coordination efforts with relevant authorities in Singapore to establish port regulations and operational guidelines.

"There are multiple routes to the decarbonisation of the marine industry and we are pleased to be able to leverage our expertise in engineering and bunkering to spearhead the development of cleaner marine fuels such as ammonia," said Chris Ong, chief executive officer of Keppel O&M.

Ammonia's potential as a source of alternative energy has been the buzz lately, with Japan taking the lead. The country imported the world's first shipment of blue ammonia from Saudi Arabia last year to produce electricity without carbon emissions.