| dc.description.abstract | In this paper, through semi-structured interviews, we have conducted a qualitative study to
understand key challenges and drivers to implementing green ammonia as a fuel alternative for
the shipping sector. Low and zero carbon fuels are seen as the only way to reduce emissions
from shipping past 20% to reach the goals set by governmental bodies such as the IMO, EU
and Norwegian government. We find that green ammonia offers an attractive solution to longer
distance shipping in short, mid and deep-sea shipping where other technologies such as battery
no longer remain an option. However, we also find that the technology is significantly more
expensive than current MGO propulsion and while the proposed technology builds on existing
ammonia networks and internal combustion engines, modifications are needed at all levels of
the supply chain. The main cost is related to the fuel costs, and they are expected to decrease
with efficiency improvements in green ammonia production. The possibility to use blue
ammonia also aids as a transitionary step. Through interviews with producers of green
ammonia, engine manufacturers and ship owners and operators, we find that actors view the
level of risk in this sector as high, but also promising. To address this, partnerships are used to
share risk and ensure all steps in the supply chain can be delivered. While the product is more
expensive without market-based mechanisms to support green ammonia, certain niches, known
as green corridors, where ammonia shipping is expected to first set sail also exist. Government
projects, ammonia shipping vessels, offshore service vessels and shipping of products with high
environmental focus are all markets where ammonia shipping is expected to be a thriving fuel
alternative. This is because although ammonia could add anything from 200-800% additional
cost to shipping, the percentage cost of green ammonia shipping on final retail price is expected
to be 1.3% higher. | en_US |
