The EU has set a legally binding climate target for 2040, at a 90% GHG emission reduction versus 1990 levels. But, while the 2030 emission target can theoretically be met with limited modifications to existing ammonia production plants in the EU, new technology pathway choices will have to be made well before 2040 to ensure compliance. We explore some of the options, and projects in progress.
Despite the successes and progress made in 2025, the year remains a missed opportunity for ammonia energy. The first complete supply chains for renewable ammonia are emerging, and some 600,000 tons of annual production capacity is set to be online in northeast China early next year. Maritime engines, cracking, and power & heat technology solutions also made their mark, moving from feasibility into deployment. But disappointing outcomes at the IMO and government support that failed to spark market development remains an issue, with plenty of critical, detail-heavy work ahead of us in 2026.
State-owned conglomerate Energy China and logistics and terminal specialist ADF are establishing a renewable ammonia supply chain in northeast China. In our recent episode of Project Features, we explored the Songyuan production project, and ADF’s planned scale-up of ammonia storage and transport facilities across China’s coast.
In the wake of the IMO’s decision to postpone adoption of a zero and near-zero fuels support framework, the European Commission has launched its own support scheme for sustainable aviation (SAF) and maritime (SMF) fuels. Strategic, targeted investments will be made to scale up EU-based production of renewable and low-carbon fuels, unlocking the fuel volumes required.
The Australian government has launched the much-anticipated “GO” scheme, a voluntary framework for emissions accounting of products including ammonia, plus the certification of renewable electricity feedstock.
Ammonia-fueled iron ore carriers could feasibly be deployed on the South Africa-Europe iron ore trade route as soon as 2029, and scale toward full route decarbonisation by 2035. Saldanha Bay is currently home to South Africa’s primary iron-ore export terminal, and could develop into a marine ammonia fuel bunker hub with the right policy support levers and investment.
The newly established UK Ammonia Alliance intends to promote the growth of the ammonia industry in the UK, building on the country’s robust research and innovation base.
