Europe| Nordic consortium reveals outlook for a green ammonia-powered vessel

1 June 2021

The Nordic Green Ammonia-Powered Ship (NoGAPS) consortium has elaborated a concept for a green ammonia-powered gas carrier, transporting ammonia as a cargo in Northern Europe and using zero-emission ammonia as a fuel.

The NoGAPS project report has been developed by the Global Maritime Forum and Fürstenberg Maritime Advisory and made possible through collaboration with consortium project partners; BW Epic Kosan, Danish Ship Finance, DNB, DNV, MAN Energy Solutions, Wärtsilä, Yara International, and Ørsted with co-funding from Nordic Innovation.

Read more: Norway: Frontline – an agreement for vessels designed to operate on ammonia

The consortium investigated the vessel, the fuel and the fueling options, as well as the business financing and policy considerations. The major NoGAPS conclusions are:

  • The potential of green ammonia-powered shipping to contribute to the decarbonization of the maritime sector is significant, and ammonia carriers present a logical starting point for demonstrating this potential.
  • Neither the technical considerations nor the associated regulatory approval for a green ammonia-powered vessel present major obstacles to putting the M/S NoGAPS on the water.
  • Ammonia synthesized from green hydrogen represents a credible long-term, zero-emission fuel.
  • The most important challenge to be overcome is to develop and demonstrate a business model that is credible in the eyes of investors and operators. Both the vessel design and the fuel sourcing strategy offer opportunities to reduce risks and costs in meaningful ways.

Government support and public finance can both accelerate the short-term timetable for investment in demonstration and improve the outlook for long-term deployment of green ammonia as a shipping fuel.

Due to the currently higher costs of green ammonia relative to conventional shipping fuels, the NoGAPS project reports also outlines a number of measures and complementary measures from governments that can strengthen the business case for green ammonia-powered shipping.

Access to the report: NoGAPS

 


Author: KS / Source: Yara / Photo: Unsplash