Holistic life-cycle investigation of alternative fuel - ammonia

• Main Author: Ng, Wei Long
• Other Authors: Chiu Sai Hoi, Benson
• Format: Final Year Project
• Language: English
• Published: Nanyang Technological University 2022
• Subjects: Engineering::Maritime studies
• Online Access: https://hdl.handle.net/10356/163807
• Institution: Nanyang Technological University

The world has been dealing with the pressing issue of climate change, with carbon dioxide being the main offender and constituting more than 79% of all greenhouse gas emissions. Currently, over 80% of goods are being transported globally by the Maritime industry, and over 3% of the world’s GHG emissions are contributed by the Maritime industry. If the rise in GHG emissions is left uncurbed, the consequences on the environment will be catastrophic. In response to that, the IMO came up with a goal to cut GHG emissions by half by 2050. This has led to many industry players to begin adopting measures such as slow steaming, optimizing route plans, and storage of energy through batteries and cold ironing. In addition, alternative fuels have been receiving more attention as the potential reduction of GHG emissions have been found to be very significant. One such alternative fuel is Ammonia, and this research paper will aim to evaluate the economical feasibility of Ammonia as an alternative fuel throughout its entire lifecycle, which includes the production stage, storage & distribution stage, and usage stage. To get a reliable and accurate understanding of the feasibility and obstacles faced by Ammonia in becoming an alternative fuel, we conducted both primary and secondary research so that our findings were consistent and well founded. Our primary research consisted of survey responses from 54 respondents that came from varying industries and sectors. Our secondary research consisted of 4 interviews with members of the Maritime industry. The interviewees are Mr Shane Balani from Lloyd’s Register, Mr Statmatis Achillas from Wärtsilä, and 2 undisclosed individuals from PSA and Maran Asia respectively. From the data collected, analysis was conducted and the primary and secondary studies showed that there were many economical obstacles across the lifecycle of Ammonia that prevented it from being used as an alternative fuel. In the production stage of Ammonia, the main obstacles encountered were the cost of electricity being too high for Ammonia production to be feasible, and the cost of building more infrastructure and production facilities across the globe so that the demand of Ammonia could be met if it were used as an alternative fuel. The issues related to the storage & distribution stage were that the cost to design and develop infrastructure and distribution networks, as well as the materials and technology required to store Ammonia are still too costly for it to be feasible at the present moment. Lastly in the usage stage, the main obstacles would be the costs required to retrofit or design new engines and vessels capable of running on Ammonia. Overall, from the perspective of economic feasibility, Ammonia as an alternative fuel is found to be in its early stages. More studies and research have to be done to overcome the current existing obstacles, as well as any future uncertainties. For Ammonia to become a potential alternative fuel, the author has provided and discussed some recommendations. Some recommendations include the involvement of governments by providing more resources, infrastructure, and schemes to encourage innovation. The involvement of industry players by being more active in trial participation of alternative fuels, and setting funds aside for the purpose of carbon neutrality. Lastly, individuals can actively choose to buy goods from brands that use shipping companies that strive toward carbon neutrality, and insurance companies can share in the risks of the stakeholders.