Samsung Heavy Industries Is Advancing Ships Powered By Ammonia

Samsung Heavy Industries is developing ships to run on green ammonia, which is 100% cleaner than current ships powered by liquefied natural gas. Lloyd’s Register has independently assessed and validated this ammonia-to-electrical power system’s performance, safety, and feasibility, confirming that it is suitable for operation.

Shipping is challenging to decarbonize. Therefore, ammonia produced using green energy offers a near-term solution to help the industry reduce emissions, which account for 3% of global CO2 emissions. Although this percentage may seem small, shipping is a vital sector for global trade, moving approximately 90% of the world’s goods. In fact, the International Maritime Organization wants shippers to achieve net-zero emissions by 2050—an essential motivation behind Samsung’s efforts to construct vessels powered by clean fuels.

“Until now, LNG has fewer carbon emissions than a pure fossil fuel, but not as much we need to achieve net zero,” says Hoki Lee, Samsung Heavy’s vice president of its green energy lab, in a virtual chat with me. “We must reduce carbon emissions soon. Ammonia is one way to supply that fuel with 100% emission reduction. Another is hydrogen. However, hydrogen is not nearly as attainable and hard to store or transport.”

Green Ammonia is more expensive than LNG, but Lee expects prices to decrease as economies of scale build. He also notes that hydrogen is more costly than ammonia, which benefits from a well-developed supply chain and distribution network. For these reasons, ammonia is more accessible. Ultimately, however, hydrogen is the north star.

Until then, green ammonia is a good first step for shippers—a fuel that can be generated by wind and solar power and utilized by traditional engines or fuel cells. It is produced through electrolysis, where water is split into hydrogen and oxygen using electricity. The hydrogen produced is then combined with nitrogen to make ammonia.

DNV GL predicts that the widespread adoption of ammonia fuel will start in 2037, comprising 25% of the maritime fuel mix by 2050. This is significant, as analysts project the maritime sector will triple deliveries by then.

Maersk Is Already Investing

Ammonia is making progress, and shippers are placing orders. Maersk is investing in ammonia-powered vessels alongside several shipbuilders and industry collaborators: Hyundai Sambo Heavy Industries, MAN Energy Solutions, Deltamarin, and Electronic FuelTech. The shipper inked contracts in 2023 and 2024. Although Maersk’s investment is greater than traditional vessels powered by fossil fuels, it aligns with the demands of its customers, including Amazon, Disney, and Microsoft.

“While ammonia holds immense potential as a sustainable fuel, it has never been commercially used in shipping or power generation,” says the Chief Executive of Amogy Seonghoon Woo, which works with Samsung Heavy. “We are excited and honored to be part of the journey to decarbonize the shipping industry, which doesn’t yet have a clean energy solution. It’s one of our biggest problems, making the world more sustainable.” Samsung estimates it will start selling ships that run on ammonia in about two years.

Amogy focuses on ammonia-to-power technology, converting ammonia into fuel. The maritime industry is in the learning phase and has rough plans to adopt the fuel source.

Technology readiness is the biggest blockade to using ammonia as fuel, which is not yet widely available. Amogy is one of the few companies developing this technology so shipbuilders like Samsung Heavy can use it to construct ammonia-powered vessels.

The International Maritime Organization has set a target of achieving net-zero emissions by 2050, and the European Union has established regulations and requirements that compel shippers to reduce emissions to operate in the region. The International Renewable Energy Agency adds that if global maritime were a country, it would be the sixth or seventh-largest CO2 emitter. The industry must expedite the development of ammonia-powered vessels to meet its carbon-reduction targets.

“However, this doesn’t mean ammonia will be the only fuel option for the maritime sector,” says Amogy’s Woo. “The future energy mix will consist of various alternative fuels, including LNG, ammonia, and methanol. Samsung Heavy Industries has been actively innovating with these fuel combinations and exploring a diversified portfolio of sustainable energy solutions.”

Samsung And South Korea Are Also Decarbonizing

The combined effort of Samsung Heavy and Amogy aligns with South Korea’s Paris promises and the shipper’s climate goals. As for South Korea, it has pledged to reduce its total greenhouse gas emissions by 40% by 2030 compared to 2018 levels. To that end, it plans to phase out coal production by 2040 and to increase renewable energy use by 40% by 2035.

Meanwhile, Samsung Heavy aims to be carbon-neutral by 2050. To achieve this, it will run all its facilities using renewable energy and improve its energy efficiency by 5% to 10% by 2050. It will also transition to pollution-free vehicles.

When it comes to decarbonizing the maritime sector, the primary focus is on scaling up ammonia production and commercializing ships that can run on this fuel. This has been a challenging hurdle for several reasons, including costs and the availability of technology. Consequently, shippers continue to rely on conventional engines powered by carbon-intensive fuels.

“Customers have been using LNG,” says Samsung’s Lee. “However, some are ready for a new frontier and want to consider another fuel. They are considering ammonia. But this new technology involves an increased cost, and these customers understand that. If they evaluate ammonia as a fuel, they are not just considering the one-time cost increase. They also think about the total cost over the ship’s lifetime.”

The maritime industry can reach its net-zero goals if shippers successfully demonstrate large-scale ammonia-to-electric power systems. This technology may also be applied to other heavy industries, such as power generation, mining, and construction. It could, thus, be a game-changer for reducing greenhouse gas emissions in these hard-to-decarbonize sectors.