Fraunhofer Institute for Ceramic Technologies and Systems IKTS
Ammonia is emerging as one of the most promising energy carriers of the future. Thanks to its high volumetric energy density, it can be transported and stored comparatively easily – a key benefit for applications without access to centralized distribution networks. When produced from green hydrogen and renewable electricity, ammonia can also make an important contribution to the defossilization of industry and transport. Challenges remain, however, not least with regard to safe handling and economic viability. This is precisely where the Fraunhofer flagship project AmmonVektor comes in, taking a holistic view of the entire value chain with a particular focus on the use of ammonia as a decentralized energy storage medium.
One potential application for ammonia is maritime shipping. Today, cargo vessels are almost exclusively powered by heavy fuel oil or marine diesel, both of which involve high levels of CO2 emissions. For this reason, alternative propulsion systems are urgently needed. In view of this, the focus areas of the AmmonVektor project include whether and how ammonia can become a viable fuel and provide the basis for climate-neutral ship propulsion from a businessmodel perspective. In this context, ammonia is compared with other renewable fuels, including biofuels, e-fuels, and e-biofuels. The analysis also looks at different propulsion concepts, including conventional internal combustion engines and the NH3-SOFC fuel cell developed at Fraunhofer IKTS in combination with an electric motor (Fig. 1).
The aim is to integrate technology development and economic assessment from the outset in order to identify which combinations of fuel, propulsion system and system conditions might be particularly promising for the future. To this end, the CEM-TEEA method developed at Fraunhofer IKTS is applied, integrating techno-economic analysis, environmental life cycle assessment (LCA), and strategic roadmapping. The result is an evaluation framework that enables assessment of new technologies not in isolation but in the context of future business models and markets.
The economic analysis is based on a total cost of ownership (TCO) approach, taking into account not only acquisition costs, but all costs incurred over the entire life cycle – from investments in propulsion systems and infrastructure to ongoing operating costs, maintenance, and fuel prices. This conveys a realistic picture of the economic viability of new technologies.
The results indicate that
- TCOs for renewable fuels are still significantly higher than current costs associated with fossil fuels.
- Fuel costs are the dominant factor, accounting for more than 70 % of the total operating costs.
- By contrast, the cost of storage infrastructure and reduced cargo capacity on board is only a minor factor, accounting for less than 10 % of total TCO.
These findings form the basis for the next step: the development of sustainable business model options. Industry workshops are being held to explore the regulatory, technological and market conditions in which ammonia-based propulsion systems could become attractive for shipping companies.
The AmmonVektor project clearly demonstrates Fraunhofer’s ability to bring technological excellence and economic reality together – and in doing so, to identify innovation pathways that pave the way toward a sustainable energy future.
Project Partners: Fraunhofer UMSICHT, Fraunhofer ICT, Fraunhofer IGB, Fraunhofer IML, Fraunhofer IMM, Fraunhofer ITWM,
Project Duration: 1.1.2024 – 31.12.2026
Additional Information: AmmonVektor