Methanol and ammonia, heralded as future fuels for the maritime sector, are transitioning from pilot projects to broader applications. Though technologically ready, scaling these fuels is expected to be a long process filled with challenges, including the development of a comprehensive fuel supply chain, according to a report from the Global Maritime Forum (GMF).

The shift from experimental phases to large-scale implementation demands extensive cooperation across the value chain, involving fuel producers, ports, shipowners, and policymakers. The driving force behind this transition is the industry’s urgency to meet ambitious decarbonization targets.

The GMF report titled ‘From pilots to practice: Methanol and ammonia as shipping fuels’ indicates substantial progress for both types of fuel since 2020. Methanol has moved beyond the proof of concept and is stepping into initial scaling with approximately 60 vessels equipped for methanol and over 300 more on order. This reflects a notable change in investment strategies within the industry.

Methanol’s adoption has been facilitated by its ease of integration into existing operations due to its liquid state at normal temperatures and pressures and the compatibility of engines and bunkering systems for retrofitting. However, the scarcity and high cost of green methanol present challenges that hinder further scaling. Addressing the supply issue with significant renewable energy investments is crucial for methanol to become a widespread option.

For ammonia, the report notes it is nearing proof of concept status. Engine tests are nearing completion, and successful bunkering trials have occurred at key ports, critical for proving its viability as a shipping fuel. However, ammonia’s toxicity necessitates significant ship design modifications, crew training, and safety protocols, making its adoption more cautious and gradual compared to methanol.

The report notes that overcoming economic hurdles and incentivizing investment in new fuel technologies, such as harmonized fuel certification and policy incentives, are essential for both methanol and ammonia. Without these measures, there is a risk of slowing progress towards decarbonization goals.

A significant breakthrough for ammonia is the potential to reduce emissions by 90-95%, exceeding initial expectations. However, despite these promising results, operational constraints mean that early adopters will likely initially use ammonia only part-time alongside conventional fuels.

Investment in bunkering infrastructure remains a critical challenge, especially for ammonia. The report suggests strategies like fuel demand aggregation and capital expenditure grants to stimulate investment in necessary infrastructure.

Ultimately, the report emphasizes that technological readiness is not the primary hurdle; the focus must now shift to establishing a robust supply chain through deep collaboration. This transition not only aims to decarbonize shipping but could also become a model for other industries facing similar environmental challenges.