The IMO member states have agreed to a new roadmap for the decarbonisation of the global shipping sector, including emissions reduction targets to be met in 2030 and 2040. It was also established that a well-to-wake approach will be the basis for the lifecycle analysis of maritime fuels going forward, with the uptake of near or zero-carbon alternative technologies & fuels to account for 5 - 10% of the global shipping sector by 2030.
Ammonia-powered vessels could be deployed on the iron ore trade routes between West Australia and East Asia from 2028, a new consortium study suggests. More than 20 vessels could be deployed on these routes by 2030, and over 360 by 2050. While ammonia fuel supply from Australia is unlikely to be a concern, validating the safety case for ammonia fuel, policy support to close the cost gap & industry-wide collaboration must all be established in time for deployment.
Key elements of Japan’s Green Transformation (GX) push have been unveiled, including policy support for the implementation of ammonia energy solutions, and a $1 trillion total public-private investment package. A subsidy scheme to address the price difference between hydrogen, ammonia and fossil fuels is included, with a nominal price tag of $36 billion, running into the 2030s.
While the opportunity for Australia to become a world-leading exporter of green molecules is well-established, State of Hydrogen 2022 suggests the best progress to date has been made on a domestic opportunity: decarbonisation of existing ammonia production within Australia. Government support for emerging hydrogen hubs, workforce training and regulatory updates are highlighted as key next steps.
The International Energy Agency has proposed a new taxonomy for hydrogen definitions based on emissions intensity, moving away from color labels. In Towards hydrogen definitions based on their emissions intensity, the IEA proposes a set of nine distinct, technology-neutral emissions intensity bands. The report also advocates for an international approach to ensure interoperability between certification schemes, and suggests that a mutual recognition approach based on the IPHE’s emissions methodology is the best way forward.
The UK government has released a consultation paper outlining its current position on several certification dilemmas, as it works towards launching a fully functioning low-carbon hydrogen certification scheme before 2025. The paper grapples with challenging design choices including chain of custody and scheme participation while emphasising the importance of international collaboration and interoperability.
KBR has been selected as technology provider for two future production projects in Texas and Washington state. At the Port of Galveston, Texas Green Fuels has begun pre-FEED work and sourcing renewable electricity for its fuels export complex. And in Nova Scotia, Bear Head Energy has received environmental approval to proceed with its 2 million tonnes per year production project near Point Tupper.
Although a globally significant ammonia producer, India still relies on ammonia & fertilizer imports to support its agricultural sector. In our recent episode of Ammonia Project Features, we explored the potential of domestically-produced renewable ammonia to both replace these imports and position India as an ammonia energy giant. Excellent solar PV resources, plentiful government support and access to “round-the-clock” renewables were all highlighted as key drivers for India to meet its renewable ammonia potential.
IRENA and RMI’s new report Creating a global hydrogen market: Certification to enable trade concludes that there are significant gaps and conflicts in current certification schemes. Inconsistent labelling thresholds, accounting boundaries, and production pathways are the main areas of concern. The report offers several recommendations to support the harmonisation of certification frameworks, warning that schemes cannot continue to develop in a “patchwork” manner.
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.