Ships prepared for ammonia account for over 10% of the global order book.
The ammonia sector has made significant strides in January, enhancing its potential as a key marine fuel. When produced from green hydrogen, ammonia's ability to enable emission-free navigation makes it a favored choice among shipowners. Currently, 10.4% of the global order book is ammonia-ready, according to the Green Technology Tracker, indicating strong industry interest in this fuel.
WinGD's ammonia engine set for a summer unveiling
This month, the Swiss engine manufacturer WinGD revealed that its ammonia-compatible engine will be ready by the summer of 2025, marking a significant milestone towards emission-free navigation. MAN Energy Solutions and Wärtsilä are also developing similar engines, further promoting advancements in this area.
Potential for exceptional long-term profitability
According to the latest estimates from Transport & Environment (2024), ammonia is expected to become one of the most cost-effective marine fuels. Although VLSFO is currently the cheapest option, e-ammonia could compete with conventional fuels by the latter half of the 2030s, driven by GHG regulations and incentives for green shipping.
These advancements highlight ammonia's potential as a practical solution for achieving sustainable and emission-free navigation in the near future.
Second-hand VLGC built in 2001 sold for $48 million
Clarksons reported the sale of a non-eco-friendly VLGC built in 2001 for the remarkable sum of $48 million at the end of January. This transaction highlights the liquidity and value retention in the second-hand LPG ship market, providing investors with confidence in the market's stability and appeal.
Source : Shippingwatch, Transport & Environment (2024).