Clean Fuels, Clear Skies: How Maritime Shipping Is Turning to Hydrogen, Ammonia, and Carbon Capture

Maritime decarbonization takes center stage

The maritime industry is in the hot seat. With rising emissions and tightening global regulations, major players are looking to hydrogen, ammonia, and carbon capture as serious solutions to climate pressures. The upcoming International Maritime Organization (IMO) meetings will play a big role in steering the path forward.

At stake is whether the industry can realistically meet the IMO's net-zero target by 2050. The revised strategy, adopted in 2023, calls for full decarbonization around mid-century, with steep cuts of up to 80% by 2040. That’s a tall order for an industry that still runs largely on fossil fuels.

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Hydrogen and Ammonia: Fueling the future

Zero-emission fuels like green hydrogen and green ammonia are seen as key to transforming global shipping. These fuels can power vessels without releasing carbon emissions, offering a cleaner alternative to heavy fuel oil.

"We need to go beyond incremental change. Green fuels must become the backbone of global maritime operations," said Christopher J. Wiernicki, CEO and Chairman of the American Bureau of Shipping (ABS).

But scaling green fuels is no small feat. Green ammonia production alone could demand around 2,000 terawatt-hours (TWh) of renewable energy to meet future demand, according to the Green Hydrogen Organisation. That’s nearly 6% of the world’s total renewable electricity output.

In the meantime, blue ammonia—made from natural gas but with carbon captured—offers a near-term bridge solution. It’s already drawing attention in regions like Singapore and the U.S., where infrastructure and supply chains for ammonia already exist.

Carbon capture onboard: Plugging the emissions gap

Not every ship can switch fuels overnight. That's where onboard carbon capture and storage (CCS) comes in.

Several maritime pilot projects are exploring how to capture CO2 from ships before it hits the atmosphere. The captured carbon could be stored underground or reused in industrial processes.

"Carbon capture may not be the silver bullet, but it can buy time for shipping to transition to cleaner fuels," said Kostas Gkonis, Secretary General of INTERCARGO.

Still, there are barriers. CCS systems are expensive, energy-intensive, and take up precious space on board. But with proper incentives and investment, they could serve as a lifeline for older vessels.

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Policy clarity: The make-or-break factor

What’s really holding back these technologies? It’s not just engineering—it’s economics.

A predictable global carbon price could shift the math in favor of hydrogen, ammonia, and carbon capture. But policy uncertainty makes it tough for companies to commit.

"The IMO really has to step up now if we are to deliver on the pace and scale of the change required," said Wiernicki at a maritime forum in Singapore. "The industry is divided, and there is no clear way forward."

INTERCARGO also chimed in with a call for "straightforward and practical mid-term measures" ahead of the IMO’s key meetings.

Without global alignment, shipping could end up dealing with a patchwork of local rules. That could slow innovation and raise costs for operators trying to go green.

Why biofuels and SAF are still on the radar

While hydrogen and ammonia steal the spotlight, other options remain in the mix. Biofuels—especially when produced sustainably—can cut emissions in the short term.

The aviation industry’s push for sustainable aviation fuel (SAF) offers a blueprint for shipping. SAF faces similar hurdles: high costs, limited feedstocks, and unclear demand signals. But coordinated policy and early investment are helping push SAF into the mainstream.

That same model could work for maritime fuels. "We know the bookends—it starts with LNG and carbon capture, and the long term favors nuclear. But the mid-game is going to be biofuels, methanol, and ammonia," said Wiernicki.

The road ahead: Industry is ready, but waiting

As the IMO prepares for its next round of climate talks, the pressure is on. The decisions made now could unlock billions in R&D and infrastructure for clean fuels.

Companies aren’t waiting around. ABS is backing alternative fuel certification pathways. INTERCARGO is calling for clarity and fairness.

And yet, all eyes are on the IMO.

"We need clarity and consistency and a level playing field for the whole industry. Now is the time for the IMO to show strength and leadership," added Wiernicki.

Bottom line: Hydrogen, ammonia, carbon capture, and bioenergy are all part of the solution. But without the right global policies, none will reach scale in time. The clock is ticking—and the maritime industry is ready to act if regulators lead the way.