Ammonia and shipping: Sailing with clean energy

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  Quantumrun Foresight
• September 3, 2024

Insight summary

Ammonia is gaining attention as a cleaner fuel option for the maritime industry, which could dramatically reduce pollution from one of the largest emitting sectors. However, the shift to ammonia also poses challenges due to its toxicity and the need for new infrastructure and safety measures. With significant changes on the horizon, the maritime sector is poised to undergo a major transformation as it moves towards using ammonia to power its vessels.

Ammonia and shipping context

Ammonia, a chemical compound, is emerging as a potential fuel for the maritime industry, offering a way to decarbonize one of the most polluting sectors. Despite its toxicity and handling challenges, ammonia boasts a high energy density, making it an effective carrier for energy storage and transport. The American Bureau of Shipping, a key regulator in the maritime industry, has recently approved designs for ammonia-powered vessels from major players, such as Samsung Heavy Industries. These developments indicate that ammonia-fueled ships could be operational by 2024, highlighting significant industry shifts towards cleaner energy alternatives.

In the broader context of global shipping, which contributes approximately 2 percent of worldwide carbon dioxide emissions (according to the International Energy Agency), the transition to ammonia could significantly impact environmental sustainability. Notably, companies like New York-based Amogy have raised substantial funds to further develop technologies that utilize ammonia in fuel cells, which could further reduce emissions. Amogy retrofitting a tractor to run on ammonia in 2023 underscores the viability and growing interest in ammonia-based technologies for larger applications, including shipping.

The shift to ammonia also requires substantial infrastructural changes within the maritime industry. These changes include the production of "green" ammonia using renewable energy, which remains limited but is growing through efforts by companies like ship manufacturer Wärtsilä and shipping firm Eidesvisk, which are investing in demonstration projects. The maritime industry's engagement with new technologies and fuels, such as ammonia, reflects a transition that will require not only technological innovation but also international cooperation and regulatory frameworks.

Disruptive impact

Increased use of ammonia could reduce air pollution from ships, which currently rely heavily on diesel fuels that emit harmful pollutants. This change could improve public health outcomes by lowering the incidence of respiratory problems and other pollution-related diseases. However, the risk of exposure to ammonia leaks, which can harm human health, remains a concern, requiring strict safety protocols and training for those handling and living near these operations.

Shipping companies may face initial high costs due to the need to retrofit or replace existing fleets with ammonia-compatible vessels and infrastructure. Yet, over time, the shift to ammonia could lead to cost savings on fuel and maintenance, given ammonia's potential price stability compared to oil. Additionally, businesses that invest early in ammonia technology could gain a competitive advantage in a market increasingly driven by environmental regulations and consumer preferences for sustainable practices.

Governments may need to implement new safety standards to manage the risks associated with ammonia toxicity and invest in research to support the development of safe ammonia transportation and storage technologies. International collaboration will also be essential, as ammonia fuel adoption needs to be supported by global standards to ensure seamless operations across borders. Ultimately, governments will need to balance environmental benefits with economic and safety considerations to effectively manage this transition.

Implications of ammonia and shipping

Wider implications of ammonia and shipping may include: 

• Reduced operational costs for shipping companies due to the stability and potential lower cost of ammonia compared to volatile fossil fuel prices, leading to more predictable budgeting and investment planning.


• A shift in labor demand within the maritime sector, with an increased need for specialists in ammonia fuel technology and safety.


• The government incentivizing the transition to ammonia with subsidies and tax breaks, leading to increased investment in renewable energy sources to produce green ammonia.


• Changes in global trade dynamics as ports that invest in ammonia fuel infrastructure may become preferred logistics hubs, influencing global shipping routes.


• Increased consumer interest in products transported via green shipping methods, potentially allowing companies using ammonia-fueled ships to command premium prices.


• Technological advances in fuel cell design and ammonia cracking technologies, leading to broader applications of ammonia energy systems beyond shipping.


• Political tension among countries over maritime regulations and standards for ammonia usage, impacting international relations and trade agreements.

Questions to consider

• What economic opportunities might arise in your community from the shift to ammonia-fueled ships?


• How might changes in shipping fuel standards influence global trade and its effects on everyday products?