26 January 2026

Green ships come sailing in

Global shipping has a large carbon wake and as such the industry is pushing to reduce emissions. One approach has been to turn to a non-carbon fuel, ammonia as an alternative fuel. Research in the International Journal of Shipping and Transport Logistics, however, warns that international maritime law has not kept pace with the speed at which ammonia-powered vessels are being designed, tested, and promoted. This, the researchers suggest, might leave unresolved safety and liability questions unanswered, which could stall the transition to cleaner shipping.

Shipping accounts for a significant three percent of global carbon dioxide emissions. In 2023, the International Maritime Organization (IMO), the United Nations body that regulates global shipping, adopted a strategy committing the sector to net-zero greenhouse gas emissions by 2050. The aim is to achieve substantial reductions by 2030 and 2040. Achieving these goals will require a large-scale shift from heavy fuel oil to zero-carbon fuels.

Ammonia is a promising candidate. It contains no carbon, so releases no carbon dioxide when used as a fuel. It can also be produced efficiently using renewable electricity rather than fossil fuels. Indeed, it is anticipated that ammonia use as a fuel will expand rapidly in the next few years. Ammonia has an additional benefit over hydrogen as a fuel is it can be liquefied at more moderate temperature and pressure, which means it is compatible with much of the existing infrastructure used to transport liquefied gases over long distances. Hydrogen as fuel would require entirely new transport and storage infrastructure.

Despite the many advantages of ammonia as fuel, there are legal and safety complications. Ammonia is a highly toxic and corrosive substance. This creates engineering challenges that require specialised engine designs to ensure reliable ignition and efficiency.

Ammonia has been transported by sea for many years and the regulations around its transport are well established but do not account for it actually being used as a fuel on ships. The International Gas Carrier Code sets standards for ships carrying ammonia as cargo, while the International Code of Safety for Ships Using Gases or Other Low-Flashpoint Fuels was developed primarily with liquefied natural gas (methane) in mind and offers no specific guidance for ammonia as a fuel.

The regulatory gaps and internal legal inconsistencies urgently need to be closed so that shipbuilders, operators, flag states, and port authorities can have certainty in the building and use of ammonia-fuelled vessels.

Choi, J. and Lim, S. (2026) ‘Legal challenges and regulatory improvements regarding ammonia as an alternative marine fuel or cargo’, Int. J. Shipping and Transport Logistics, Vol. 22, No. 5, pp.1–27.

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