Market
Maritime Transport
Maritime transport is vital to the global economy and plays a fundamental role in global trade through transporting more than 80% of the world’s total trade volume.
The challenge
Global shipping of goods on the world’s oceans currently represents around 2,5% of global greenhouse gas (GHG) emissions. Although sea transport represents one of the most sustainable means of transport for large volumes of goods or products, it is also a hard to abate sector. This is due to many factors, one of which being the required energy density of the fuel or energy source, and another being the required investments at large scale.
Maritime transport represents more than 80% of the world’s total trade volume.
IMO has a strategy to reduce the emissions by half within 2050 compared to 2008 figures.
Presently, there are no commercially and technically attractive alternatives to fossil fuels when it comes to deep-sea shipping. At the same time, the global environment is demanding reduced emissions and environmentally-friendly solutions to sustain a healthy planet. The International Maritime Organisation (IMO) has adopted a strategy to reduce the GHG emissions from the shipping sector by half within 2050 compared to 2008 figures.
Importantly, nations and alliances such as the EU are imposing even stricter regulations considering GHG emissions from the shipping sector. From 2024, the EU parliament has voted yes to all voyages from or to an EU-port t be included in the EU Emission Trading System (ETS), forcing ship owners or charterers to invest in carbon allowances per tonne of CO2 emitted on the voyage. This represents a paradigm shift within shipping, as fossil fueled voyages will become significantly more expensive.
The solution
These regulations will fundamentally change global maritime transport. Fortunately, frontrunners and pioneers are taking steps to renew vessel fleets, invest in new technologies, develop zero-emission marine engines and improving ship efficiencies. Major marine engine suppliers, such as Wärtsilä and MAN, will have commercialized new technologies and plan to deliver ammonia-fueled engines already from 2023, supporting the shift towards renewable fuels.
This is why North Ammonia is positioning to develop the next-gen fuels for maritime transport: green hydrogen and ammonia.
“We believe Norway is in pole position to meet the demand from the maritime industry.”
The result
We believe green hydrogen and green ammonia are complementary and future-fit energy sources for maritime transport. Green hydrogen is suitable for shorter, fixed routes, where infrastructure is available, and the energy density requirements are modest. Green ammonia is suitable for longer, flexible routes, at larger scale. One of the key advantages is the high volumetric energy density compared to green alternatives. Another key advantage is the boiling point. Ammonia can be cooled to -33 degrees to form a liquid and can therefore be stored in larger volumes for longer periods of time, for example in a onboard fuel supply tank or onshore storage facilities.
200-400 million tonnes
It is expected that 200 to 400 million tonnes of new green ammonia production capacity is required to meet GHG emission reduction regulations in the global shipping economy, representing a massive need for investments in production and infrastructure on a global basis.
North Ammonia will play a vital role in this developing market and be a frontrunner with our first Norwegian green hydrogen and ammonia facilities.
Agriculture
Global food production is heavily reliant on the fertilizing industry, which in turn is heavily reliant on ammonia as the fundamental feedstock product.
Approximately 50% of the global food production is directly reliant on synthetic fertilizers.
Growing demands
Approximately 50% of the global food production is directly reliant on synthetic fertilizers, which contains ammonia, and is an energy intensive production process consisting of steam methane reforming (SMR) with natural gas as the feedstock. This process generates large quantities of CO2 emissions.
The continuous rise in global population increases the ammonia demand for the agricultural industry. At the same time, ammonia is presented as a means of decarbonising shipping and green chemical production. This represents a massive new demand for ammonia.
Massive need for green ammonia
As almost all of the ammonia produced for the fertilizing industry is produced with natural gas and associated CO2 emissions today, there is a massive need for green ammonia in the coming decades. Similarly, the growing demand from the maritime industry also requires green ammonia.
Industrial Synergies
As new renewable power generation is installed on a global basis, there is an increased need for efficient modes of storing and transporting the generated electricity.
The present power grid infrastructure in most regions is not robust enough to take on the additional power that will be generated in the next years. An efficient and cost-competitive alternative to power export cables and power grid investments, is to directly produce green hydrogen and ammonia co-located with the renewable power generation sources. As an example, offshore wind power generation can be co-located and directly connected to energy storage facilities and hydrogen or ammonia production plants to efficiently transport the energy through hydrogen or ammonia as a designated energy carrier.
Additionally, as new sustainable industrial businesses are established, large-scale synergies can be achieved. Co-locating and establishing partnerships to support each other’s sustainable industries is key to develop future-fit value chains. It is therefore vital to make green hydrogen and green ammonia available at strategic locations.