IEA sees ammonia winning shipping’s future fuel race

Ammonia will be shipping’s dominant fuel by 2050, the International Energy Agency (IEA) has predicted.

In the World Energy Outlook 2022, published by the IEA yesterday, the Paris-based agency sees ammonia meeting around 45% of demand for shipping fuel by 2050. Bioenergy and hydrogen each meet a further 20% of demand the IEA is projecting, with the use of hydrogen in particular focused on short‐ to mid‐range operations. Electricity will play a minor role focused on meeting demand from small ships and cruise ferries used for short‐distance operations, the IEA suggested.

Oil will still constitute almost 15% of shipping fuel demand by 2050

“Ships have a lifetime of 20‐35 years, which inhibits the uptake of new low‐emissions technologies and contributes to oil still constituting almost 15% of shipping fuel demand by 2050,” the report stated.

The global transport sector consumes a quarter of total final energy consumption today and is responsible for nearly 40% of the emissions from end‐use sectors, according to the IEA.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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