S6 Ep19: Sofia Fürstenberg Stott, Partner, Fürstenberg Maritime Advisory

In this episode, we examine the potential of ammonia to take off as a marine fuel, by considering trends on both the production and demand sides. Although numbers of ammonia-fuelled vessels are lower at present than LNG or methanol, Sofia sees clear signs in the global orderbooks that ammonia is gaining momentum as a marine fuel. She believes that the market is likely to first emerge among ammonia carriers, and in regions where infrastructure is already being developed for receiving ammonia as an energy vector, including Japan and parts of Europe. With future low-carbon ammonia production expected to reach nearly 50 million tonnes by 2030, she highlights that the bulk of that production isn’t earmarked for the maritime sector. Instead, she notes that the lion’s share of investments is for projects using ammonia for energy production and to decarbonise land-based industries. Sofia urges shipping companies to get involved where potential ammonia production, infrastructure and import ecosystems are already emerging, by joining clusters to co-invest and share risk with other industries.While she is confident that technology developments will meet the challenge of ensuring safe, leak-proof ammonia fuel and bunkering systems, she argues that the bunkering industry needs to step up to ensure operational readiness for ammonia bunkering. She also insists on the importance of developing robust protocols for verifying and certifying the lifecycle carbon footprint of different ammonia production sources.Finally, she explains why the adoption of the IMO Net-Zero Framework, which is scheduled to take place in October, will be essential for the development of a market for ammonia as a marine fuel.