A fuel transition gaining real commercial traction
The ammonia-as-marine-fuel story has shifted meaningfully in recent months, with several developments confirming that the technology is crossing from pilot stage into early commercial reality. First ammonia dual-fuel engine deliveries are now underway, with established shipowners and engine makers including Wärtsilä, Höegh Autoliners and Exmar all committing to ammonia-capable vessels and propulsion systems across 2026 and 2027.

Bunkering infrastructure is progressing on multiple fronts, with hubs under development in Singapore, Egypt, the Netherlands, Norway and Japan. On the supply side, CF Industries, Trafigura and TFG Marine have signed an agreement to develop low-carbon ammonia as a marine fuel targeting the US Gulf Coast and northwest Europe. According to Clarksons Research, 316 ammonia-ready vessels are currently on order. A study commissioned by WinGD and Envision Energy found green ammonia could prove cost-competitive with VLSFO and LNG at current prices with moderate regulation.

Hormuz volatility reinforces long-term momentum behind ammonia fuel adoption
The closure of the Strait of Hormuz in late February has introduced short-term turbulence into ammonia commodity markets, with benchmark prices in northwest Europe rising by approximately $105 to $150 per tonne over March. While the Middle East accounts for more than a fifth of global ammonia supply, the market has demonstrated resilience, with buyers successfully redirecting towards alternative sources in North Africa, Southeast Asia and the US Gulf Coast. This rerouting highlights a maturing global ammonia trade network. For investors, the Hormuz disruption appears cyclical rather than structural, with limited duration impact on ammonia’s long-term role as a marine fuel. If anything, the disruption reinforces the strategic case for diversified, long-haul ammonia supply chains. This is precisely the infrastructure now being built. The transition is no longer theoretical, but entering an investable phase.