Lloyd’s Register study reveals ammonia bunkering potential in Pilbara
A feasibility study, undertaken by the classification society Lloyd’s Register, has highlighted the potential for using clean ammonia to refuel ships, particularly iron ore carriers, visiting the Pilbara region of Western Australia.
The study, commissioned by Yara Clean Ammonia, a unit of Norwegian fertilizer company Yara International, and Pilbara Ports Authority (PPA), looked at key areas including the estimated demand and likely availability of ammonia as a replacement shipping fuel. Moreover, the potential risks and regulatory requirements for ammonia bunkering (refuelling) at the ports were also considered.
Key results of the study showed that safe ammonia bunkering is both economically and operationally viable within the Pilbara region, Yara and Pilbara Ports said, adding that the study indicated that ship-to-ship bunkering operations could be performed within acceptable risk levels at anchorages in Dampier and Port Hedland.
Moreover, the study confirmed that existing ammonia production and export infrastructure within the Pilbara, such as Yara’s Karratha plant and Pilbara Ports’ Bulk Liquids Berth at Dampier, could be leveraged to initiate bunkering operations in the near term.
The companies further noted that the results showed the demand for ammonia as a fuel to decarbonize the international iron ore trade, reaching a volume potential of 1 million to 1.5 million tons in 2035.
Yara Clean Ammonia Senior Vice President Commercial Murali Srinivasan said the level of demand reflected the push by iron ore miners and the steel industry to decarbonize.
“The study has shown that a key enabler for meeting this demand is Yara’s existing assets, including the world-scale Yara Pilbara Fertilizers ammonia plant near Karratha. Furthermore, the current development of the Yuri renewable hydrogen project on the Yara Pilbara site will be the first in Australia to inject green molecules into an existing ammonia plant, and Yara is vigorously exploring options to ramp up volumes of clean and low carbon ammonia to lay the foundation for a reliable supply chain to serve the emerging shipping fuel market,” Srinivasan stated.
Pilbara Ports CEO Samuel McSkimming said that, with the carbon reduction efforts in the steel industry supply chain, bulk carriers are a natural starting point for the early adoption of alternative marine fuels, adding: “The Pilbara contains the world’s largest bulk export ports. Last year, we achieved 752.4 million tons of trade with more than 6,829 vessel visits. This scale of operations cannot be found anywhere else in the world, and it makes the Pilbara’s ports the natural beachhead from which the global bulk carrier fleet will decarbonize.”
“The study is an important step towards implementing safe ship-to-ship ammonia bunkering at our anchorages in Dampier and Port Hedland. Ammonia is already widely produced, used and shipped in industrial quantities around the world. To be able to expand its application as a green shipping fuel would greatly reduce shipping emissions,” McSkimming further stated.
Commenting on the energy transition in Pilbara, McSkimming said: “We are proud to contribute to a green transition in the Pilbara region and more broadly in the global shipping industry. Pilbara Ports is progressing on several strategically significant projects, including major port infrastructure upgrades at Dampier and Port Hedland, to support the production of clean fuels in the Pilbara.”
To remind, Yara and Pilbara Ports signed a collaboration agreement to jointly facilitate the uptake of clean ammonia as a marine fuel in the Pilbara region in Western Australia back in July 2022, and a couple of months later, Lloyd’s Register (LR) was selected to undertake feasibility studies.
The companies highlighted they plan to continue working together as first movers to enable safe ammonia bunkering in the Pilbara as the switch to zero-carbon shipping materializes.