Green ammonia could soon achieve cost parity with conventional fuels

A study undertaken by marine engine builder, WinGD, and green technology firm, Envision, has revealed that under moderate global regulations, green ammonia could soon achieve cost parity with very low sulphur fuel oil and LNG. The impact of additional subsidies or rewards relating to the use of zero-emission fuels were not considered in the calculation.

The study used operating expenses of green-fuelled vessels on container and bulk trades between China and Australia. It used verified lifecycle emission factors and estimated bunker pricing on the Chinese coast. By 2050, green ammonia was found to outperform LNG on a cost basis, with a predicted saving of 5-6% in lifecycle operating costs.

Dominik Schneiter, WinGD CEO, commented: “Using real fuel pricing, engine performance and emissions data, we show how green fuels can become commercially viable options for ship operators. With global policy on pause, now is the time for the industry to show how it can overcome the obstacles to decarbonisation using the fuels and technologies that already exist today.”