MAN Energy Solutions

2025 is a critical year for the adoption of ammonia fuel in shipping. Here, we preview important upcoming meetings of the International Maritime Organization, what regulatory gaps are being filled by this work, potential candidates for decarbonization measures, and progress in engine development. All this sets the scene for incredible progress to be made in the coming years.

In 2025, the pieces are rapidly assembling to enable and accelerate imports of ammonia energy to Japan. This year, government agency METI is due to announce two lots of key funding, including contracts for difference subsidies and development of import infrastructure. Power generation technologies will be commercialised within the next few years, and more maritime players are joining the push to deploy ammonia fuel in Japanese ships.

Backed by the German Federal Government, MAN Energy Solutions will lead a consortium building on previous work to design and test an ammonia-powered four-stroke engine for marine applications.

The biennial SMM event in Hamburg featured a number of ammonia announcements from across the entire fuel value chain, including deployment timelines for MAN’s two-stroke engines, high-pressure fuel pumps, bunker and container ship designs, and technology integration partnerships.

Eastern Pacific Shipping’s on-order very large ammonia carriers (VLACs) will be registered in Singapore, thanks to a new partnership with the Maritime and Port Authority. Trafigura has announced the first of its ammonia-fueled, medium gas carriers will be delivered from South Korea in 2027. In Japan, K LINE and MAN are leading a 5-party collaboration to develop ammonia fueled-engines and deploy them in 200,000 dwt bulk carriers. We also explore ammonia-fueled Aframaxes in Malaysia, a concept study for a large-volume, coastal ammonia carrier in Japan, and a new salmon fishing vessel design in Norway.

In marine ammonia news to begin 2024, we explore a volume-efficient, “prismatic” ammonia fuel tank design, a new long-term charter for ammonia shipping in the Pacific region, and two global gas exporters ordering ammonia-capable carriers for their fleets.

Maersk Tankers has ordered up to ten very large ammonia carriers (VLACs) from Hyundai Samho Heavy Industries (HHI). The Korean-built vessels will have a capacity of 93,000 m³, with Maersk to make a decision to install ammonia-capable engines based on “regulatory and customer” support.

Expected to become commercially available in 2025, WinGD’s X-DF-A ammonia powered engines will be fitted on Samsung Heavy Industries’ newbuild vessels. Eastern Pacific Shipping expects its ammonia powered Newcastlemaxes and VLAC fleet to be delivered from 2026 onwards, after signing a series of agreements with MAN Energy Solutions and other key partners.

In an interview with media outlet TradeWinds, MAN Energy Solutions has indicated that a detailed testing program for its two-stroke marine ammonia engine began last week in Copenhagen. With safe, sustainable operations paramount, MAN is aiming for the test engine to operate on 100% ammonia fuel in all four cylinders by 2025.

Grieg Star and a series of high-profile maritime consortium partners have assessed the full feasibility for retrofitting a Grieg Star L-Class vessel to run on ammonia fuel. The study concludes that technical & regulatory challenges will not be showstoppers in the transition. A combination of high investment costs, uncertainty over ammonia fuel availability & pricing and slow market development remain the biggest barriers, presenting significant risks for first movers.

Wärtsilä has just launched its medium-speed, 4-stroke, Wärtsilä 25 engine, intended to be the first Wärtsilä engine to run on ammonia fuel. From 2023 a technology upgrade will be commercially available to allow the engine to run on alternative fuels like ammonia, with a fully-compliant NOx abatement system already available when running on fossil-based fuels. At the recent Australia conference, MAN ES reported that their two-stroke ammonia engine will be commercially available in 2024, with testing to commence next year.

Eastern Pacific Shipping will lead development of an ammonia-powered, dual-fuel gas tanker. The carrier will be built by Hyundai Heavy Industries, registered under the Singapore national flag, classed by ABS, and will be the first vessel fitted with MAN Energy Solutions’ G60 two-stroke dual-fuel ammonia engine. As EPS steadily scales up its engagement with maritime ammonia, another high-profile consortium is accelerating a bunkering study in Singapore.

Navigator Gas has been awarded AiP for the design of its new, ammonia-fueled gas carrier. An industry-wide consortium including MAN ES, Babcock International, and the Norwegian Maritime Authority (NMA) collaborated on the design.

Led by RINA with 21 project partners, the ENGIMMONIA project aims to transfer demonstrated, terrestrial clean energy solutions to the maritime sector. As of May, ENGIMONNIA is now fully-funded (€9.5 million) by the EU's Horizon 2020 program. The end result will see the MAN ES ammonia engine installed and demonstrated in three vessels: an oil tanker, a container ship, and a ferry.

Welcome to the Ammonia Wrap: a summary of all the latest announcements, news items and publications about ammonia energy. This week: the World Bank sees hydrogen and ammonia as key to decarbonising shipping, a new coalition for safe ammonia bunkering, Trafigura co-sponsors MAN's development of ammonia-fueled maritime engines, cracking plant a feature of the new Wilhelmshaven hydrogen hub, RWE and H2U to develop global hydrogen trading between Australia and Germany, Province Resources' West Australian mega-project grows to 8GW and South Africa's Hydrogen Society Roadmap a step closer.

Based on recent press reports, ammonia has a new friend: methanol. With the two upstart fuels being mentioned together with increasing frequency, they seem poised to develop on parallel paths as each seeks market applications where it can become a mainstay solution.

Two recent announcements show Singapore emerging as a center for development of ammonia as a maritime fuel. In both cases, multi-party coalitions, with Singaporean connections, are focusing on ground-breaking work.

What are the key considerations for a future Ammonia Fuel Standard? On November 17, 2020, the Ammonia Energy Association (AEA) hosted a panel discussion moderated by Ron Stanis from GTI (Gas Technology Institute), as well as panel members David Richardson from Airgas, Rob Steele from EPRI (Electric Power Research Institute), Eric Smith from IIAR (International Institute of Ammonia Refrigeration), and Dorthe Jacobsen from MAN Energy Solutions at the recent Ammonia Energy Conference. The AEA Fuel Standard Committee has been developing a draft product specification that will facilitate the acceptance of ammonia as a fuel. The overall message from panelists came through loud and clear: the draft standard is ready for stakeholder comments, and the Fuel Standard Committee welcomes your input.

This week, DNV GL published its annual Maritime Forecast to 2050, concluding that “e-ammonia, blue ammonia and bio-methanol are the most promising carbon-neutral fuels in the long run.” DNV GL’s assumptions that determine this long run, however, suggest a significant mid-term reliance on fossil LNG. This risks locking the industry into a long-term emissions trajectory incompatible with the IMO’s 2050 GHG targets, in part because of significant fuel supply and infrastructure investments. These investments could become more ‘sticky’ than expected. A host of alternative opinions have been published in the days before and after DNV GL published its report. These suggest that, for ammonia, the long run could begin this decade. Among others, MAN ES has announced that its ammonia engine will be available for retrofits by 2025.

At least four major maritime ammonia projects have been announced in the last few weeks, each of which aims to demonstrate an ammonia-fueled vessel operating at sea. In Norway, Color Fantasy, the world's largest RORO cruise liner, will pilot ammonia fuel. Across the broader Nordic region, the Global Maritime Forum has launched NoGAPS, a major consortium that aims to deploy "the world's first ammonia powered deep sea vessel" by 2025. In Japan, a new industry consortium has launched that goes beyond on-board ship technology to include "owning and operating the ships, supplying ammonia fuel and developing ammonia supply facilities." And the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), which published its roadmap last month, aims to demonstrate ammonia fuel on "an actual ship from 2028" — specifically, a 80,000 dwt ammonia-fueled bulk carrier.

Three separate projects to design a range of ammonia-fueled vessels were announced last week at a shipping industry conference in China. Lloyd's Register has granted Approval in Principle (AiP) for the design of a 180,000 ton bulk carrier. ABS announced a project to "produce designs for an ammonia-fueled Chittagongmax container carrier of 2700 TEU capacity." And Lloyd's Register also announced a project for "an ammonia-fuelled 23,000 TEU Ultra-Large Container Ship (ULCS) concept design." All three projects are working with the two-stroke ammonia engine developed by MAN Energy Solutions, and all are led by major shipbuilders in China.

In June 2018, MAN Diesel & Turbo rebranded itself MAN Energy Solutions, reflecting the maritime engine market leader's "strategic and technological transformation" towards sustainability. The company was "taking a stand for the Paris Climate Agreement and the global pursuit of a carbon-neutral economy." According to Uwe Lauber, Chairman of the Board, "our activities have a significant impact on the global economy. In shipping, for example, we move more than half of the global stream of goods ... [and] the path to decarbonising the maritime economy starts with fuel decarbonisation, especially in container shipping." This week, the company took a significant step towards realizing its vision, disclosing that it is "pressing ahead with developing ... an ammonia-fuelled engine." This builds on the technology development pathway that MAN ES presented at the NH3 Energy+ Topical Conference at Pittsburgh in October 2018. The budget and timeline are set: the €5 million (USD$5.7 million) project will last two to three years and, if the shipowners decide to deploy the finished product, "the first ammonia engine could then be in operation by early 2022."