Seven major Japanese companies have joined forces to develop an ammonia fuel supply chain in Japan and to operate four ammonia-fuelled car carriers. This project is said to be the world’s first commercial supply chain, with the Chubu region serving as the hub, and it will integrate fuel procurement and supply infrastructure at the Hekinan terminal, along with vessel operations. The vessels will be Japan’s first ammonia-fueled car carriers and will be equipped with dual-fuel engines capable of using ammonia as fuel, as well as fuel tanks with sufficient capacity to enable trans-Pacific voyages using ammonia fuel alone.
Ammonia is regarded as a potentially more environmentally-friendly fuel because it does not contain any carbon, which means combustion therefore does not produce any carbon dioxide gas, although engines using carbon-based pilot fuels may still produce CO2. Carbon dioxide is a potent contributor to the planetary greenhouse gas effect. Ammonia can be made in an environmentally friendly way provided renewable power is used for the manufacturing process. It can be manufactured using atmospheric nitrogen and from hydrogen obtained by using electrical energy to split water molecules (in a process known as electrolysis).
Disadvantages
Ammonia combustion can produce nitrous oxide, which is a potent greenhouse gas that, according to the U.S. Environmental Protection Agency, is pound-for-pound 265 times more warming than carbon dioxide. And that’s no laughing matter. Ammonia is also extremely toxic and corrosive, so great care needs to be taken in relation to handling. “To ensure the safe use of ammonia… the vessels will also incorporate a multilayered safety concept, including measures to prevent and detect leaks and to neutralize ammonia in the event of a leak,” reads a joint statement from the seven companies.
Green-ammonia production requires substantial amounts of renewable electricity, particularly to produce hydrogen through electrolysis. It also requires water, which can be a scarce resource, especially in countries such as Australia.
Ammonia as a fuel
Ammonia is a gas at standard temperature and pressure. However, for use as a marine fuel, ammonia is typically stored as a liquid, either under pressure or through refrigeration. It liquefies at approximately −33 degrees Celsius at atmospheric pressure. Liquid ammonia has a gravimetric energy density of approximately 18.6 MJ/kg and a volumetric energy density of approximately 12.7 MJ/L. These figures are significantly lower than those for conventional heavy fuel oil.
In comparison, Heavy Fuel Oil of say 380 centistoke is about 39 to 40 MJ / kg (energy density by weight) and about 38 to 39 MJ / L (energy density by volume). So, compared with HFO 380 centistoke, liquid ammonia has a mass penalty of about two times that of HFO and a volume penalty of about three times. So an ammonia-powered vessel needs to burn a bit more than double the weight of ammonia for the same energy. From a volume perspective, an ammonia-powered vessel will need larger tanks to enable the propulsion of the vessel. That has a cascade of effects because it might require less cargo space, along with other structural changes
The seven companies aim to establish a stable ammonia fuel supply system through the integrated development for the purpose of reducing greenhouse gas (GHG) emissions from international shipping and customers’ Scope 3 emissions. Scope 3 are the greenhouse gas emissions that organisations indirectly create through the supply chain.
Participants and roles
JERA, which will procure green ammonia using renewable energy that will likely be sourced from India. JERA will also develop new ship loading facilities at the ammonia receiving terminal adjacent to the Hekinan Thermal Power Station.
Kyokuyo Shipyard will build an ammonia bunkering vessel that is scheduled for completion in 2030.
“K” LINE and NYK will establish a fuel sales joint venture, equally owned by the two companies, to facilitate fuel sales and supply between vessels, primarily at the ports of Nagoya and Mikawa. The ammonia bunkering vessel will be owned and operated by NYK or one of its wholly owned subsidiaries. “K” LINE and NYK will also own, manage and operate the ammonia-fuelled car carriers.
Shin Kurushima Dockyard will lead the design phase. Shin Kurushima Dockyard, Imabari Shipbuilding, and NSY will then jointly design and build the vessels.
“By bringing together their advanced technological and shipbuilding capabilities, the three companies aim to realize next-generation vessels that combine high safety in open-sea operations with world-leading environmental performance, thereby demonstrating the competitiveness of Japan’s shipbuilding technologies on the global stage,” the joint press release said.
