‘Clean’ ammonia-powered bulk carriers could be operating on iron ore trade routes between West Australia and East Asia by 2028, and reach 5% adoption by 2030, according to a new study
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The study was released by the West Australia-East Asia Iron Ore Green Corridor Consortium, a collaboration between the Global Maritime Forum, BHP, Rio Tinto, Oldendorff Carriers and Star Bulk Carriers, aimed at establishing a new green shipping corridor.
Clean ammonia as defined by the study is produced with electrolytic hydrogen, so-called ‘green ammonia’, and ammonia produced from conventional hydrogen with applied carbon capture and storage or ‘blue ammonia’.
Green shipping corridors were established by the signatories to the Clydebank Declaration at COP26. They are specific trade routes involving two or more ports where zero-emissions shipping solutions are demonstrated and supported. They bring together key maritime stakeholders: shipowners, charterers, ports, buner suppliers, policy makers and others to drive international shipping’s decarbonisation. Some 21 green shipping corridors have been proposed around the world since April 2022.
The Global Maritime Forum said the study indicates the core elements for implementing a West Australia-East Asia green corridor – including deploying ammonia-powered ships, access to clean ammonia (as the most likely zero-emissions fuel to power the corridor), and the availability of bunkering infrastructure – are within reach, provided the safety case for the use of ammonia as marine fuel is validated and accepted.
Findings suggest it is possible to get clean ammonia-powered bulk carriers on the water by 2028, provided the development of key technologies, such as suitable engines and regulations remain on track. Enough clean ammonia will likely be available to meet the corridor’s near- and long-term requirements. Should production scale up as expected, the corridor’s demand could be fully met by Australian clan ammonia, but it could also be imported from other production locations globally. The study also shows the Pilbara region of Australia is a viable option for bunkering on the route, avoiding costly deviations from the trade route, while Singapore remains well-positioned to serve as a bunkering hub. Should the corridor develop in accordance with the scenario in the analysis, more than 20 vessels could operate on clean ammonia on the corridor by 2030, scaling up to roughly 360 vessels by 2050.
In a press statement, Oldendorff Carriers said, “The feasibility report can serve as an inspiration for further development of other green corridor initiatives, through public-private partnerships and regulatory follow-up actions. This type of collaboration is very useful in identifying what steps and initiatives are necessary to accelerate the decarbonisation of shipping. Oldendorff Carriers is committed to an ambitious decarbonisation trajectory towards sustainable levels.”
Oldendorff Carrier global engagement and sustainability managing director, Scott Bergeron said, “Being one of the founding members of the West Australia-East Asia Iron Ore Green Corridor Consortium was an excellent opportunity for Oldendorff Carriers to collaborate and share perspectives with the other consortium members on the feasibility of reducing emissions on this strategic iron ore trade. We are pleased to join in sharing this feasibility assessment to show how a well-considered green corridor can facilitate our collective desire to decarbonise shipping with an alternative fuel.
Added Mr Bergeron, “While outside the scope of this report, the safety concerns and environmental risks of ammonia have yet to be adequately addressed. As the safety of our crew is paramount, these challenges must be overcome to enable adoption.”
Global Maritime Forum chief executive Johannah Christensen said, ‘’The study demonstrates the industry’s keen interest to decarbonise its supply chain in the region. What is neeed now to accelerate the development of this green corridor is public sector support.’’
In parallel with this study, the Getting to Zero Coalition has established an Australia-East Asia Iron Ore Corridor Task Force to act as a collaborative industry forum to explore these issues. The study is based on analysis by the Energy Transitions Commission on behalf of the West Australia-East Asia Iron Ore Green Corridor Consortium.
BHP maritime and supply chain excellence vice president Rashpal Bhatti said, “In line with our net-zero ambitions, we seek to influence this supply chain with our ecosystem partners by creating demand for low- and zero-greenhouse gas emissions fuels and energy-efficient vessels.”
Rio Tinto commercial operations head Laure Baratgin said, “The West Australia-East Asia Iron Ore Green Corridor represents a great opportunity to aggregate green fuel demand and supply in support of the industry’s journey towards net zero in this major trade lane. As we build on the studyto realise a safe and economic green shipping corridor, public-private partnership is key to bring this project to life.”
Star Bulk chief strategy officer Charis Plakantonaki said, “Working closely with our business partners to assess the feasibility of green fuels and technologies is a core pillar of Star Bulk’s strategy. This study has allowed us to examine the potential for the demand, supply and bunkering of clean ammonia in the West-Australia-East Asia corridor, an important trade route for our larger vessels. Through this work, we aim to complement parallel efforts of the industry to tackle other challenges related to ammonia as a marine fuel, including safety protocols and new engine designs, and to help advance the sector’s understanding on the pathway to a greener future.”