As the first large ammonia-powered bulk carrier enters service, the debate is shifting from whether the technology works to whether it can compete on cost.

A major owner backs ammonia with ships and long-term contracts
“We believe green ammonia will be cheaper than diesel and it will happen much quicker than you think,” said Alexander Saverys, chief executive of shipping group CMB.TECH, after the company took delivery of the world’s first 210,000-dwt ammonia dual-fuel bulk carrier. CMB.TECH expects to operate 21 ammonia-powered ships by 2029, and engine testing shows greenhouse gas emissions more than 90% lower in ammonia mode than on diesel. The ships are backed by long-term charters with major cargo owners such as Mitsui O.S.K. Lines and Fortescue, showing that customers are now committing cargoes, not only testing the technology.

If the cost case holds, ammonia becomes a mainstream option
Saverys argues that ammonia fuel can be produced and distributed at scale, and CMB.TECH is investing in production and bunkering to supply its own fleet. In his view, the main challenge is now convincing customers that committing early will leave them better placed on both cost and emissions within two to five years. The first voyages will test whether his cost expectation holds. If it does, ammonia could move from a niche option to a mainstream marine fuel, which would also add new seaborne trade for ammonia carriers.

Sources: CMB.TECH, WinGD & Xinde Marine News