Maersk in Singapore

Maritime Industry Leaders to Explore Ammonia as Marine Fuel in Singapore

March 10, 2021 (Press Release) - A.P. Moller - Maersk A/S, Fleet Management Limited, Keppel Offshore & Marine, Maersk Mc-Kinney Moller Center for Zero Carbon Shipping, Sumitomo Corporation and Yara International ASA are pleased to announce that the parties have entered into a Memorandum of Understanding to jointly conduct a feasibility study (hereinafter “Study”) with the aim to be one of the pioneers in establishing a comprehensive and competitive supply chain for the provision of green ammonia1 ship-to-ship bunkering at the Port of Singapore, the largest bunkering port in the world.

Emitting zero CO2 when combusted, ammonia has long been considered as one of the most promising alternative marine fuels to reduce greenhouse gas (GHG) emissions within the shipping industry, which is in line with the International Maritime Organization (IMO) strategy to reduce CO2 emission by 2050. In particular, green ammonia possesses great potential as it is produced from only renewable electricity, water and air with no CO2 emission.

The Study aims to cover the entire end-to-end supply chain of ammonia bunkering, which includes the development of a cost-effective green1 ammonia supply chain, design of ammonia bunkering vessels, as well as related supply chain infrastructure. Relevant government agencies and experts in Singapore will be engaged in working towards the standardization of safe operation and regulations.

The study will assess the supply of ammonia including potential synergies with Liquefied Petroleum Gas (LPG) as a starting point. Considering the comparable requirements for mild refrigerated storage, vessels or barges initially designed for LPG can also handle brown3, blue2 and green1 ammonia.

Mr Morten Bo Christiansen, VP and Head of Decarbonisation, A.P. Moller - Maersk, said “Alongside Methanol, at A. P. Moller - Maersk we see green ammonia as an important future fuel for the decarbonisation of our fleet. 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. We are pleased to work with renowned companies in this field to pave the way for Ammonia as a future fuel to decarbonise global shipping.”

Notes:

1Green ammonia: Carbon-free ammonia synthesized from nitrogen and carbon-free hydrogen produced from renewable energy.

2Blue ammonia: Carbon-neutral ammonia produced from natural gas, with the CO2 produced from the processes captured and prevented from entering the atmosphere.

3Brown ammonia: Conventional ammonia produced from natural gas.

4Ammonia-ready LPG bunkering vessel: LPG bunkering vessel, which can be modified and converted into ammonia bunkering vessel in the future.

SOURCE: A.P. Moller - Maersk