Clean Hydrogen
The race to develop clean energy is accelerating and Clean Ammonia has taken a leading position in the shipping world. Plans to produce green and blue ammonia started in 2021 and increased in the following years. Potential investments could grow to over 100 billion dollars, but this new industry faces headwinds in four key areas.
Production: Potential volume for all known projects totals 134M tons with most of the off-take slated for power outlets. Fourteen projects have a scheduled Financial Investment Decision and represent 51M tons. New projects were concentrated in the U.S. in response to IRA subsidies while long term projects in Australia have been delayed due to higher capital costs. Clean ammonia shipments began in 2024 and will ramp up to 2.3M t/y in 2026. An additional 2.4M t/y is projected from the U.S. in 2027 – 2028. Project approvals and timelines depend on price subsidies and infrastructure but it’s evident ammonia will play a major role in the power/fuel industry.
Infrastructure: The transition from production to end user requires several complex phases and multiple companies. New terminals, tank farms, and piping systems are needed for most projects while Hydrogen based projects require refineries to crack the ammonia into hydrogen. European projects are still in the design phase as governments scramble to outline safety requirements and licensing procedures. In Japan, power producers revitalized old LNG systems and have started pilot projects in three power plants.
Commercial Strength: Some commercial agreements were completed in 2023 but pricing was a major obstacle, particularly with limited government subsidies and variable, potentially volatile production costs. The IRA subsidies in the U.S. and accelerated infrastructure projects in Japan have pushed suppliers and receivers to work on pricing schedules. Indicative prices are under discussion but both sides are far from final numbers.
Shipping Viability: Shipping demand for ammonia will increase 10% in 2025 – 2026 and continue as more projects come on-line. Long haul cargoes from the U.S., Middle East, and Australia to Europe and the Far East are expected to ramp up steadily and tighten the mid-sized gas carrier market initially and the VLGC market as cargo sizes are increased.
The Clean Hydrogen Team
![Terry Kearney](https://www.quincannon.com/hubfs/Website%20Employee%20Headshots/NY_Terry_Kearney_1x.jpg)
Terry Kearny
Ship Broker, Special Projects Lead
![Terry Kearney](https://www.quincannon.com/hubfs/Website%20Employee%20Headshots/NY_Terry_Kearney_1x.jpg)
Terry Kearny
Ship Broker, Special Projects Lead
Terry Kearney joined Quincannon Associates in 2011 to develop new business in the Projects Group. He combines hands-on engineering experience, with a Masters Degree in Business Administration, to assist customers in creating new shipping departments and improving existing practices. For some customers, he and his team manage all of their logistics requirements. The team has extensive experience with long term contracts, vessel acquisitions, and project financing. Terry was drawn to the shipping industry because of its International scope and cultural diversity. He joined Quincannon Associates for its core values of teamwork, excellence and integrity. In his free time, Terry enjoys home renovation projects, hosting family gatherings, and organic gardening.
O: (+1) 212-246-3673
M: (+1) 203-832-4799
tkearney@quincannon.com
![NY_Anthony_McDonald_1xB](https://www.quincannon.com/hubfs/Website%20Employee%20Headshots/NY_Anthony_McDonald_1xB.jpeg)
Anthony McDonald
Gas Broker, Olefins & Gas Specialist
![NY_Anthony_McDonald_1xB](https://www.quincannon.com/hubfs/Website%20Employee%20Headshots/NY_Anthony_McDonald_1xB.jpeg)
Anthony McDonald
Gas Broker, Olefins & Gas Specialist
Anthony McDonald is a Gas Broker at Quincannon Associates with over 17 years of experience in the Maritime industry. He graduated from the United States Merchant Marine Academy in 2006 and started his career as a 3rd Mate on a chemical tanker before transitioning to a product scheduler role at Morgan Stanley. Anthony has been with Quincannon for the past 11 years, where he currently heads the New York Office Gas desk.
In terms of his professional milestones and achievements, Anthony has held various roles in the maritime industry, bringing diverse experience to his current position. He joined Quincannon in June 2012 and has since played a key role in the company's success.
Outside of work, Anthony enjoys spending time with his family, friends, and dog Brodie. Anthony stays active in the winter by skiing whenever possible, and in the warmer months, golfing or hiking.
O: (+1) 212-246-1394
M: (+1) 781-603-2391
amcdonald@quincannon.com