South Africa's green bunker fuel production may be dominated by green ammonia - WEF

Green ammonia is identified as South Africa’s preferred zero-emission potential fuel for production, according to a study by the World Economic Forum (WEF).

PHOTO: Fishing trawlers moored in Saldanha Bay harbour, South Africa. Getty Images

Scarcity of biogenic carbon dioxide (CO2) could drive South African producers to opt for green ammonia production for the global shipping sector rather than e-methanol, the study noted.

Green ammonia is produced by combining green hydrogen with nitrogen obtained from the air through the Haber-Bosch process. Both hydrogen generation and Haber-Bosch processes are theoretically powered by renewable electricity in this production method.

Green fuel producers can take advantage of the "abundant wind and solar resources" of the country to generate more renewable electricity in South African ports like Boegoebaai and Saldanha Bay. This will allow them to produce affordable green hydrogen and green ammonia for the shipping sector, the study suggests.

Hurdles to scaling green ammonia output

“Safety, especially for use as a marine fuel and handling at ports is the biggest barrier for ammonia,” it noted.

Another major obstacle to scaling up green ammonia capacity in South Africa is the shortage of green hydrogen. The study highlighted several factors that could potentially hinder increasing green hydrogen supplies in South Africa. It includes insufficient renewable energy supply, uncertainty regarding government support, an underdeveloped project pipeline, a lack of offtakers, technological risks and limited production capacity or skill sets.

The study also identified low domestic demand due to high price premiums for zero-emission fuels as a significant challenge.

“The green premium and who is going to pay is a challenge. Everyone in the supply chain thinks it shouldn’t be themselves,” the study reported citing an industry representative.

“Near-term adoption barriers” like a lack of ammonia bunkering infrastructure could delay green ammonia adoption beyond 2030.

“Operators lack confidence in the country’s ports, facilities and infrastructure to deliver as consistent or reliable a service as other ports, even for conventional fuels,” the study continued. “Moreover, the South African ports used today for conventional refuelling are not involved in projects shifting to green fuels. Similarly the ports looking to advance green fuels do not have much bunkering infrastructure today.”

The study also highlighted the potential ripple effect of delayed global policies promoting zero-emission fuels, which could slow down African domestic policies and hinder green financing and production in the region.

By Konica Bhatt

Please get in touch with comments or additional info to news@engine.online