MAN Energy Solutions plans to deliver its first ammonia-powered engine for installation on a new ship in Japan this year, with the capability to offer these engines to customers after 2027. Ammonia is being explored as an alternative fuel by shippers to reduce emissions, as the shipping industry is responsible for nearly 3% of global CO2 emissions. Testing the ammonia-powered ship will take up to two years, with fuel supplies, infrastructure, and safety standards needing to be established. Sales of ammonia engines are not expected until 2027, according to MAN’s CEO.
Further cooperation with port authorities, including in Singapore, is necessary to ensure safe ammonia bunkering. Green ammonia, a cleaner fuel source made from renewable fuels and electrolysis of water, is not expected to reach certain production levels before 2030. MAN also opened a workshop in Singapore to maintain, repair, and retrofit fleets with dual-fuel engines using oil and alternative fuels. Retrofitting existing ships with alternative fuels could cost between $25 million and $50 million, with potential for biofuels to be used in engines up to 100%.
Overall, there is a push towards cleaner fuels in the shipping industry, with ammonia engines being developed to reduce emissions. However, infrastructure and safety standards need to be established before widespread adoption can occur. MAN Energy Solutions is working on retrofitting existing ships with alternative fuels and increasing employee numbers in Singapore to support these efforts. The push towards cleaner energy sources is evident, with potential for significant impact on global emissions in the shipping industry.
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