A project spearheaded by the consortium to build an ammonia carrier is moving onto the detailed design phase.

The Maersk Mc-Kinney Moller Center for Zero Carbon Shipping said the Nordic Green Ammonia Powered Ships (NoGaps) project is moving into its second phase.

The research and development organisation said this will involve producing a detailed ship design for the vessel, which will also be fuelled by ammonia, and is the basis for “a potential shipyard tender and the construction of the vessel”.

The Maersk Mc-Kinney Moller Center will be leading the ship design work package.

It said NoGaps had been able to move forward with the project thanks to additional funding from Nordic Council of Ministers-controlled organisation Nordic Innovation, which was unavailable for comment.

The Maersk Mc-Kinney Moller Center said it will be working in close collaboration with NoGaps partners Nordic Innovation, the Global Maritime Forum, BW Epic Kosan, Yara International, MAN Energy Solutions, Wartsila and DNV.

In the first phase, which started in 2020, the ammonia carrier project looked at proof of concept for the vessel design, including safety, the production and supply of green ammonia, business models and economic incentives that might make it economically viable.

The first report on this was produced by the Global Maritime Forum and Furstenberg Maritime Advisory along with other project partners in 2021.

Unique position

Its authors said that the Nordic region is in a unique position to pioneer and build a value chain for ammonia-powered shipping on an accelerated timetable as it has access to “plentiful renewable energy”, large-scale ammonia production, shipping companies and engine manufacturers.

The report highlighted that the incoming ammonia-fuelled engines, which are due to be available from 2024, need to minimise the release of unburnt ammonia, nitrous oxide and NOx emissions.

“The expected design pathway for these engines will be dual-fuel, which will help mitigate the risks to investors in the ships, as the availability of green ammonia fuel remains to be seen,” the report’s authors said.

They said the NoGaps vessel would like start by operating on grey ammonia produced from fossil fuels.

The authors also said that new vessel designs will need to accommodate larger fuel tanks and safety considerations to minimise the possibility of leaks, since ammonia is toxic to people and the environment.

The report concluded that due to the current high costs of producing green ammonia developing a business case is the biggest challenge.

It identified several ways to mitigate this including a long-term chartering contract or joint venture for the vessel.