The advantages of Ammonia as fuel are all centered around the GHG emission reduction
The benefits of using Ammonia as a fuel primarily revolve around reducing greenhouse gas (GHG) emissions. Through strategies like increasing cargo capacity and transitioning to alternative fuels, EXMAR has effectively decreased the GHG footprint of its fleet, as illustrated in the graph below. Comparing the vessel LIBRAMONT from 2006 to the more recent WEPION in 2018, advancements in hull optimization and engine efficiency have led to an approximately 80% reduction in GHG emissions. Transitioning to LPG as an alternative fuel is projected to further reduce the GHG footprint to around 65% upon the delivery of LPG-fueled MGCs in 2025. Ultimately, with the introduction of ammonia-fueled MGCs in 2026, emissions are expected to plummet to just 10%. While operating on ammonia is carbon-neutral, a small amount of pilot fuel is necessary to ignite the ammonia during startup.
EXMAR’s decision to order the world's first ammonia-fueled ammonia carrier reflects our commitment to innovation in the maritime industry. By burning blue or green ammonia fuel we will contribute to the decarbonisation of the shipping industry.
Additionally, policymakers have implemented measures to discourage the use of traditional fuel oil:
- Emission Trading System (ETS): Since ammonia is carbon-free, vessels powered by ammonia will not incur fuel taxes while sailing.
- Fuel EU Maritime: Ammonia will be exempt from fuel penalties under this initiative.
- Carbon Intensity Index (CII): The negligible amount of CO2 emitted during ammonia-powered sea voyages significantly improves the vessel's CII rating.