Australia's Pilbara region suitable for ammonia bunkering – LR study

A study conducted by the classification society Lloyd's Register identifies the Australian ports of Port Hedland and Dampier as "economically and operationally feasible" for ammonia bunkering.

PHOTO: Aerial view of Port of Port Hedland. Pilbara Ports Authority

The study, commissioned by Yara Clean Ammonia (YCA) and Pilbara Ports Authority, focuses in particular on the potential of bunkering bulk carriers with ammonia in the Pilbara region.

Pilbara Ports chief executive, Samuel McSkimming, said the iron ore and steel industry are pushing for decarbonisation, making bulk carriers a natural starting point for early adoption of alternative marine fuels.

Western Australia’s Pilbara region is home to several bulk export ports, including the world's largest bulk port, Port Hedland, and Dampier, a main iron ore export centre. According to the study, these two ports can facilitate ship-to-ship ammonia bunkering of bulk carriers within a risk range that is considered "acceptable".

“Last year we [Pilbara Ports] achieved 752.4 million tonnes of trade with more than 6,829 vessel visits. This scale of operations cannot be found anywhere else in the world, and it makes the Pilbara’s ports the natural beachhead from which the global bulk carrier fleet will decarbonise,” McSkimming added.

Port Hedland and Dampier anchorages are undergoing significant infrastructure upgrades to support clean fuel production and bunkering, he added.

The report further estimates that ammonia-powered bulk carriers will consume around 1-1.5 million mt/year of ammonia by 2035. This reflects the level of demand from the steel industry, YCA’s vice president, Murali Srinivasan noted.

Yara already has an ammonia plant in Pilabara's Karratha region. It is also building a green hydrogen plant on the same site. YCA plans to use this green hydrogen to "inject green molecules" into its existing ammonia plant to produce green ammonia to meet the shipping sector’s upcoming demand.

Meanwhile, the Port of Dampier also has a bulk-liquid loading platform that can be used to launch bunkering operations in the near future, the study reports.

This platform can be used to load and offload large volumes of liquid cargoes, including crude oil, fuel oil, and other liquid cargoes, Pilbara Ports Authority explains on its website. It is also equipped with the necessary equipment to ensure safe handling of liquid cargo, the port authority adds.

“Ammonia is already widely produced, used, and shipped in industrial quantities around the world. To be able to expand its application as a green shipping fuel would greatly reduce shipping emissions,” McSkimming concluded.

By Konica Bhatt

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