The Growing Ammonia Transport Market: New Vessels, Engines, and Industry Trends

As the world accelerates its transition to cleaner energy sources, ammonia is emerging as a promising alternative fuel and energy carrier. Traditionally used in fertilizers and industrial applications, ammonia is now gaining attention for its potential in decarbonizing shipping and power generation. This shift is driving significant developments in ammonia transportation, leading to new vessel designs, advanced propulsion systems, and expanded infrastructure.

With the push for net-zero emissions, ammonia is being explored as a hydrogen carrier and zero-carbon fuel. The global market for ammonia transport is expected to grow steadily as industries seek sustainable alternatives to fossil fuels. The International Energy Agency (IEA) predicts ammonia demand could more than triple by 2050, driven by its role in hydrogen supply chains and its adoption as a marine fuel.

As a result, shipping companies and shipbuilders are investing heavily in new ammonia-capable vessels, while engine manufacturers are developing propulsion technologies tailored for ammonia-fueled operations.

Shipyards worldwide are rolling out new ammonia carriers to meet increasing demand. South Korean shipbuilders, including Hyundai Heavy Industries (HHI) and Samsung Heavy Industries (SHI), have unveiled designs for next-generation ammonia carriers. These vessels are equipped with enhanced safety features, including advanced leak detection systems and cargo-handling innovations to mitigate ammonia's toxicity and volatility.

Japanese shipbuilder Mitsubishi Heavy Industries (MHI) is also developing ammonia-ready vessels, including tankers that can transport ammonia in both liquid and gaseous forms. Similarly, European shipyards, such as Damen Shipyards, are working on multi-fuel-ready ammonia carriers to provide greater flexibility for operators.

In addition to purpose-built carriers, several shipping companies are retrofitting existing LNG carriers to handle ammonia. This strategy allows operators to transition toward ammonia transport without requiring entirely new fleets.

One of the most significant challenges in ammonia-powered shipping is the development of engines that can efficiently and safely burn ammonia as fuel. Engine manufacturers such as MAN Energy Solutions and Wärtsilä have made substantial progress in designing ammonia-capable engines.

- MAN Energy Solutions is developing a two-stroke ammonia-fueled engine expected to be commercially available by 2025. The engine aims to achieve high efficiency while minimizing nitrogen oxide (NOx) and nitrous oxide (N₂O) emissions, which are key environmental concerns with ammonia combustion.

- Wärtsilä has announced the successful testing of an ammonia-powered four-stroke engine, which could serve as a viable option for smaller vessels and auxiliary power systems on large ammonia carriers.

- Japan’s Kawasaki Heavy Industries (KHI) is also making strides in ammonia-fueled propulsion, focusing on hydrogen-ammonia hybrid engine solutions that maximize fuel efficiency and safety.

As these technologies mature, shipowners are evaluating the feasibility of adopting ammonia-fueled engines in both newbuilds and retrofits, further strengthening ammonia's role in the future of maritime transport.

While ammonia presents a low-carbon shipping solution, it comes with challenges that need to be addressed:

- Toxicity and Handling Risks: Ammonia is hazardous to humans and marine ecosystems, requiring specialized handling and storage infrastructure.

- Combustion Challenges: Unlike traditional fuels, ammonia has a lower energy density and requires optimized combustion techniques to ensure efficient performance.

- Regulatory Frameworks: The International Maritime Organization (IMO) is working on developing safety and environmental regulations for ammonia-fueled ships, ensuring they meet emissions and operational standards.

The ammonia transport market is on the brink of a major expansion, with new vessels, advanced engines, and global policy initiatives supporting its growth. As shipbuilders, engine manufacturers, and regulatory bodies collaborate, ammonia-powered shipping is poised to become a viable component of the maritime energy transition.

With investments in research and development, ammonia could soon play a central role in sustainable shipping, helping the industry meet its ambitious decarbonization targets while ensuring a cleaner future for global trade.