Study reveals Pilbara potential for ammonia as a clean shipping fuel
The study, commissioned by Yara Clean Ammonia (Yara) and Pilbara Ports, was undertaken by Lloyds Register, and looked at key areas including the estimated demand and likely availability of ammonia as a replacement shipping fuel. The potential risks and regulatory requirements for ammonia bunkering (refueling) at the ports were also considered, according to the company's release.
Key results of the study show that safe ammonia bunkering is both economically and operationally viable within the Pilbara region.
The study indicated that ship-to-ship bunkering operations could be performed within acceptable risk levels at anchorages in Dampier and Port Hedland. Moreover, the study confirms that existing ammonia production and export infrastructure within the Pilbara, such as Yara’s Karratha plant and Pilbara Ports’ Bulk Liquids Berth at Dampier, could be leveraged to initiate bunkering operations in the near-term.
The results also show the demand for ammonia as a fuel to decarbonize the international iron ore trade, reaching a volume potential of 1 million to 1.5 million tonnes in 2035.
Yara Clean Ammonia Senior Vice President Commercial Murali Srinivasan said the level of demand reflected the push by iron ore miners and the steel industry to decarbonize.
Pilbara Ports Chief Executive Officer Samuel McSkimming said that, with the carbon reduction efforts in the steel industry supply chain, bulk carriers are a natural starting point for the early adoption of alternative marine fuels.
Pilbara Ports and Yara plan to continue working together as first movers to enable safe ammonia bunkering in the Pilbara as the switch to zero-carbon shipping materializes.
Yara Clean Ammonia operates the largest global ammonia network with 15 ships and has, through Yara, access to 18 ammonia terminals and multiple ammonia production and consumption sites across the world. Revenues and EBITDA for the full year 2022 were USD 4,422 million and USD 249 million respectively.
Pilbara Ports is the world’s largest bulk export port authority, encompassing the ports of Ashburton, Dampier, Port Hedland and Varanus Island. Pilbara Ports operates as a Western Australia Government Trading Enterprise (GTE). Pilbara Ports achieved a record breaking 752.4 million tonnes of trade in the 2022-23 financial year, with the value of commodities passing through its ports exceeding $164 billion. This was achieved with 6,829 distinct vessel visits, an average of 18 vessel arrivals per day.
