Transport

Here's why one of Europe's biggest renewables investors is backing green hydrogen-based ammonia for shipping fuel

While other markets could compete for limited supplies of clean NH3, Copenhagen Infrastructure Partners argues it is the only cheap, scaleable zero-carbon fuel

Jens Jødal Andersen, vice president for marine fuels at Copenhagen Infrastructure Partners.
Jens Jødal Andersen, vice president for marine fuels at Copenhagen Infrastructure Partners.Photo: Copenhagen Infrastructure Partners
Senior Reporter

Denmark’s Copenhagen Infrastructure Partners (CIP), one of the biggest renewables investors in Europe, is placing its bets on ammonia made with renewable hydrogen being the main green shipping fuel by 2040.

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“All things equal, green ammonia will be cheaper to produce than green e-methanol,” Jens Jødal Andersen, vice president for marine fuels at CIP, tells Hydrogen Insight. He adds that the biggest cost for both fuel types is power generation and electrolysis.
“Main difference is that green methanol requires biogenic CO2 which must be procured at a cost whereas green ammonia requires nitrogen which can be taken from the air,” he adds. “So, in essence already, from day one, green ammonia will become cheaper.”
Large, ocean-going vessels are widely expected to use both ammonia and methanol — whether green or blue (produced from hydrogen made with natural gas and carbon capture) — as well as some biofuels and perhaps synthetic methane made from renewable H2 and captured CO2.

The direct use of hydrogen or batteries to fuel ships will be limited, however, “due to the sheer size of the tank/batteries needed to propel larger ocean-going vessels”, Andersen says, although he adds that these could be an option for smaller boats.

However, CIP expects renewable ammonia to have the largest share of the green shipping fuel market “as it is cheaper, scaleable and the only zero-carbon fuel [as opposed to carbon-neutral]”, Andersen notes.

CIP also believes that the shipping industry will be the largest consumer of green-hydrogen-based fuels, especially ammonia.

While this could lead it to compete with other sectors that use the chemical, including fertilisers, Andersen predicts that production will be able to scale up to serve demand. “It is not limited by feedstock in the same way as the other clean fuels.”

CIP has also proposed several large-scale green hydrogen projects in Europe, such as the 1GW Åland Energy Island in Denmark or 2GW Project Catalina. However, Andersen lists “locations such as western Australia, western Africa, southern part of South America — amongst others” as the places where renewable H2 will be cheapest to produce.

“Another factor is that you want to place your production close to a port from where it can be exported to the world market,” he adds.

“There are many hurdles when developing what is pretty much a new industry, but many of the good locations are also quite remote and maybe underdeveloped, so authorities see an opportunity in attracting these new projects,” he said. “These are, at times, also referred to as ‘the new oil states’.”

While CIP is quiet on details of its green ammonia investments, it has already spent an undisclosed sum on a 26.67% stake in megaproject developer CWP, which is in the early stages of developing renewable NH3 projects in Mauritania, Morocco, and Australia. The Danish firm is also due to take a final investment decision on the 3GW Murchison green ammonia export project in Australia next year.
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Copenhagen Infrastructure PartnersAmmoniaGreen H2Shipping
Published 22 April 2024, 09:13Updated 23 April 2024, 11:11