Skip to main content

Assertion: The United States can help other countries invest in clean port infrastructure through technology financing and multinational agreements.

The United States federal government has many policy tools at its disposal to facilitate a global transition to clean shipping.

Financing: The United States could create new financing programs to support the ammonia-based infrastructure at key ports. Financing would likely come from the Export-Import Bank (Ex-Im Bank) which can offer loans and loan guarantees to foreign buyers of U.S. exports. In this case, the Ex-Im Bank could provide financing to port owners or ship operators for a variety of products. For example, port operators may buy American-made refueling infrastructure. The Ex-Im Bank could also provide financing to foreign buyers looking to buy products necessary for an ammonia supply chain, such as electrolyzers for hydrogen production.

Pilot projects: The United States could coordinate with key trading partners to develop ammonia shipping pilot projects on strategic trading routes. All involved countries would commit to building ammonia refueling infrastructure at relevant ports and completing a minimum number of journeys with ammonia ships. The goal of these pilot projects is to demonstrate the feasibility and benefits of ammonia-based shipping, as well as resolve any early issues that may emerge. These sites can serve as models for other ports to follow by showcasing successful technology deployment and operational practices. Successful pilot projects will be helpful in convincing skeptical trading partners that ammonia-based shipping is a viable alternative to existing shipping fuels.

Technical Assistance and Training: The United States could send experts and engineers to partner countries to provide on-the-ground technical assistance and training. This would ensure that local personnel are equipped with the necessary skills to operate and maintain the new ammonia refueling stations.

Multinational agreements: The United States could work with key trading partners to draft multinational agreements to transition to ammonia based shipping over an agreed upon period of time. Additionally, these agreements could facilitate a smooth transition by standardizing ammonia production and refueling practices around the world.

There is a strong precedent for such an international agreement in the shipping industry. In 2020, the International Maritime Organization (IMO) — a specialized agency within the United Nations — implemented new rules that required shipping vessels to reduce the sulfur content of their fuels. Although the IMO has little power to enforce this rule, many shipping operators have started to comply with the rule and sulfur emissions from shipping fuel dropped 10% within a couple years.1 The United States could spearhead a similar international measure to pressure nations to switch to ammonia over a period of time.

Sources:​

Footnotes​

  1. Hausfather, Z., & Forster, P. (2023, July 3). Analysis: How low-sulphur shipping rules are affecting global warming. Carbon Brief. https://www.carbonbrief.org/analysis-how-low-sulphur-shipping-rules-are-affecting-global-warming/ ↩