Managing the Transition to Zero-Carbon Marine Fuels

The analysis demonstrates that ships built or retrofitted with dual-fuel capacity for ammonia can meet or exceed EU marine sector decarbonization targets at costs equal to or lower than conventional heavy fuel oil (HFO) ships when carbon pricing is applied. A new build fully powered by ammonia can reduce lifetime emissions by 77% with a lifetime fuel cost equivalent to an HFO ship, while retrofits can reduce emissions by 41-52% at a lower overall cost. The report highlights that ammonia's viability depends on the availability of varying carbon intensities—from 'moderate CI' produced via natural gas with carbon capture to 'very low CI' produced via electrolysis—and notes that while ammonia is already handled globally, its toxicity requires purpose-built ship systems and ongoing safety validation by the IMO.

• Dual-fuel ships provide the flexibility to blend conventional fuel oil with varying grades of ammonia, allowing operators to adjust to declining emission targets as low-carbon fuel supplies scale.
• Under a scenario with a carbon price starting at $100/ton in 2025 and increasing 4.25% annually, a new ammonia-powered ship can achieve a 77% reduction in lifetime emissions while breaking even on fuel costs with a conventional HFO ship.

APA

Steelman, J. (2024). Managing the Transition to Zero-Carbon Marine Fuels. Clean Air Task Force. https://cdn.catf.us/wp-content/uploads/2024/01/17101635/managing-transition-zero-carbon-marine-fuels.pdf

Chicago

Steelman, John. Managing the Transition to Zero-Carbon Marine Fuels. Clean Air Task Force, 2024. https://cdn.catf.us/wp-content/uploads/2024/01/17101635/managing-transition-zero-carbon-marine-fuels.pdf.

Wikipedia

{{cite report |last1=Steelman |first1=John |title=Managing the Transition to Zero-Carbon Marine Fuels |publisher=Clean Air Task Force |date=January 2024 |url=https://cdn.catf.us/wp-content/uploads/2024/01/17101635/managing-transition-zero-carbon-marine-fuels.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{steelman2024managing, author = {Steelman, John}, title = {{Managing the Transition to Zero-Carbon Marine Fuels}}, institution = {Clean Air Task Force}, year = {2024}, month = jan, url = {https://cdn.catf.us/wp-content/uploads/2024/01/17101635/managing-transition-zero-carbon-marine-fuels.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }