A handful of major maritime industry stakeholders including Maersk and Keppel have teamed up to study and possibly develop a green ammonia ship-to-ship bunkering supply chain in Singapore, the world’s leading bunkering port.
A Memorandum of Understanding outlining the project has been signed by 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.
The MoU puts in place plans to jointly conduct a feasibility study for establishing a competitive supply chain for ammonia bunkering.
Although not yet in use, ammonia is considered a promising alternative fuel for the shipping industry to comply with the International Maritime Organization’s goal of reducing greenhouse gas emissions from shipping by half by 2050. When combusted, ammonia produces energy with no CO2 emissions. Green ammonia refers to ammonia that is produced using power supplied by 100% renewable sources.
The feasibility study will take a comprehensive look at the entire end-to-end supply chain of ammonia bunkering, including the development of a cost-effective green ammonia supply chain, design of ammonia bunkering vessels, and any related supply chain infrastructure required.
The partners will also engage with relevant government agencies and experts in Singapore in order to standardize the safe operation and regulations related to the fuel. Because of comparable requirements, the project will initially focus powering mild refrigerated storage, vessels or barges initially designed for Liquefied Petroleum Gas.
“Alongside Methanol, at A. P. Moller-Maersk we see green ammonia as an important future fuel for the decarbonization of our fleet,” said Morten Bo Christiansen, VP 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.”
Once of the world’s biggest builder of offshore drilling rigs, Keppel Offshore & Marine in January announced plans to exit the offshore rig building sector altogether, shifting its focus to infrastructure projects renewable energy.
“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, CEO of Keppel Offshore & Marine. “This includes the design of ammonia bunkering and ammonia-powered vessels, as well as developing the value chain necessary for the adoption of ammonia. This is in line with Keppel’s Vision 2030, which includes seizing opportunities in new energy.”
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