Methanol and ammonia, poised to transform the shipping industry, are transitioning from pilot phases to broader implementation. Despite technological readiness, a report from the Global Maritime Forum describes the path to adoption as a ‘marathon, not a sprint,’ with substantial obstacles like developing a robust fuel supply chain.

Transitioning from pilot programs to large-scale applications is complex, demanding unprecedented collaboration across the value chain—including fuel producers, ports, shipowners, and policymakers. The industry’s goal is to achieve ambitious decarbonization targets.

The Global Maritime Forum report, ‘From Pilots to Practice: Methanol and Ammonia as Shipping Fuels,’ notes significant progress in the maturity of these fuels since 2020. With around 60 methanol-capable vessels active and over 300 ordered, methanol is moving from ‘proof of concept’ to ‘initial scale.’ It’s relatively easy to integrate due to its liquid state and available retrofitting for engines and bunkering equipment, offering shipowners a near-term cleaner fuel option.

Methanol’s primary challenge is the scarcity of green molecules, which are costly and difficult to obtain. Ensuring an affordable, reliable supply of green methanol requires major investment in renewable energy and production facilities, presenting a significant barrier to scaling up.

To meet industry decarbonization targets by 2030, both methanol and ammonia need substantial policy support, harmonized certification, and collaboration across the value chain. Without these interventions, cost disparities between fossil fuels and green alternatives might slow progress, jeopardizing climate goals.

Ammonia, nearing ‘proof of concept,’ requires more cautious adoption due to its toxicity. Significant structural changes and crew training are needed to mitigate risks. Although engine tests and bunkering trials show promise, infrastructure for ammonia is underdeveloped, posing a ‘chicken-and-egg’ dilemma: a lack of infrastructure discourages investment in bunker vessels, while insufficient numbers of ammonia-powered ships slow infrastructure development.

A phased adoption approach is expected, initially using ammonia for 25% to 50% of propulsion, allowing the industry to gain experience and confidence. Ammonia’s potential emissions reduction of 90–95% offers a promising path towards zero-emission shipping.

To accelerate development, the report recommends policy incentives to bridge cost gaps, establish harmonized fuel certifications, and foster fuel demand aggregation for infrastructure investment. Collaborative initiatives between ports, terminals, and early adopters are crucial for achieving scale and meeting decarbonization targets.

The industry’s focus is shifting from technology to supply chain challenges. Success in overcoming these hurdles will not only ensure shipping’s sustainable future but could also serve as a model for decarbonization in other hard-to-abate sectors.