Techno-Economic Assessment of Low-Carbon Ammonia Fuel

This technical report presents a techno-economic analysis of low-carbon ammonia as an alternative fuel for the maritime sector, specifically focusing on its application in Post-Panamax vessels. The analysis includes a calculation of the total cost of ownership (TCO) of vessels powered by low-carbon ammonia compared to those using very low sulfur fuel oil. It evaluates the annual increase in carbon tax necessary to offset the TCO increment associated with ammonia. The report discusses the efficiency of various propulsion systems, including compression ignition and spark-ignition engines, as well as solid oxide fuel cell systems. It also examines the potential benefits and drawbacks of using hydrogen and diesel as dual fuels to enhance ammonia combustion. The findings indicate that while ammonia can achieve significant reductions in greenhouse gas emissions, challenges related to its combustion properties and toxicity must be addressed. The report highlights the urgent need for the maritime industry to transition to zero-emission fuels to meet international GHG reduction targets.