Before MEPC83, Höegh Autoliners CEO Andreas Enge had decided to commit to ammonia as the company’s new fuel of choice. Speaking to reporter Charlie Bartlett in the Maritime Reporter Norway Supplement, he
Before MEPC83, Höegh Autoliners CEO Andreas Enge had decided to commit to ammonia as the company’s new fuel of choice. Speaking to reporter Charlie Bartlett in the Maritime Reporter Norway Supplement, he said: “Ammonia is more scalable and will be cheaper than methanol, full stop.”
He’s not alone in thinking that. A Global Maritime Forum study released this past week indicates that under the parameters principally agreed within the IMO Net Zero Framework at MEPC83, ammonia dual-fueled ships have a clear competitive advantage from the mid-2030s.
The analysis shows ammonia duel-fueled ships offer the broadest optionality for least cost compliance in the short-term. When considering the likely specifics of the reward mechanism, the potential for e-ammonia to be a competitive compliance pathway is even earlier, from 2028 onwards.
The total cost of ownership analysis indicates that the strategy to only own conventionally fueled tonnage is now uncompetitive in both the short-term and certainly the mid-term – as well as constraining opportunities to benefit from reward revenues.
LNG will initially hold a competitive advantage over alternative fuel choices during the early transition period, but despite any early dominance LNG may achieve in the late 2020s,
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