Around 6,000 tonnes of CF Industries ammonia, produced in the US, was safely transferred between the Green Power Medium Gas Carrier (MGC) owned by Purus on time charter to Trafigura to the Small Gas Carrier (MGC) Gas Aegan.
With the shipment of ammonia due to be received by Fertiberia for the production of fertiliser, the STS transfer is hoped to showcase the feasibility of using ammonia as a hydrogen-based low-carbon fuel to decarbonise shipping.
STS transfers are widely undertaken in maritime today, facilitating the transfer of fuel or cargo between vessels without the need for port infrastructure, supporting long-distance operations.
However, as ammonia’s potential role as a low-carbon fuel has developed, concerns around its toxicity in water, have limited ammonia STS transfers.
Conducted by International Fender Provider (IFP), in line with current regulations, Andrea Olivi, Head of Wet Freight for Trafigura, said the transfer demonstrated the feasibility of ammonia bunkering and supports its ammonia trading activities.
Sitting among the world’s largest vessel charterers, Trafigura is currently responsible for over 5,000 voyages a year with around 400 ships. In May 2024, the company signed a contract for four MGCs that can use low-carbon ammonia as a fuel.
Set to be built by HD Hyundai Mipo Dockyard in South Korea, the first ship is expected to be delivered in 2027.
With the International Maritime Organization’s (IMO) revised 2050 Net Zero strategy, ship operators and builders are increasingly viewing low-carbon ammonia as its future fuel.
While the commodity is traded globally, port infrastructure such as terminals and bunkering facilities remain unestablished and ammonia engine technology is immature.
Fuelling the future of shipping: e-methanol or ammonia?
Shipping’s decarbonisation will be a central pillar in meeting Net Zero targets. Accounting for around 2% of global carbon dioxide (CO2) emissions in 20221, the maritime industry’s drive towards carbon neutrality has been catalysed by the International Maritime Organization’s (IMO) recently revised carbon reduction targets.
The new strategy released in 2023 enhanced the industry’s ambition to meet Net Zero by 2050, committing to ensure the uptake of zero and near-zero greenhouse gas (GHG) emission fuels by 2030. It set targets to reduce the total annual GHG emissions from international shipping by at least 20% (with an ambition for 30%) by 2030, and at least 70% (striving for 80%) by 2040 compared to 2008 levels.
Building off the revised Net Zero strategy, the IMO’s Maritime Environment Protection Committee (MEPC 81) met in London, UK, in March to agree on possible draft outlines for its Net Zero framework to cut greenhouse gas (GHG) emissions from international shipping.
With near-term options including energy efficiency measures for ships, the uptake of zero or near-zero GHG emission technologies, fuels and energy sources is seen as the clear path to take the industry to Net Zero.
The industry faces some of the largest hurdles of any sector. While some trading routes could be switched to zero-emission land travel, many shipping routes are essential to global trade and can only be carried out by sea. Furthermore, the fragmented nature of the industry with a complex contracting structure reduces the incentives to drive efficiency to the maximum.
While battery and fuel cell solutions could prove successful in short-distance trips and near-shore operations, the need to improve energy efficiency and retrofit engines to run on alternative fuels looks to be the best option for long-range shipping. Here, hydrogen is likely to play a role as well…
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