Huge cargo ships may get cheaper ammonia fuel with new US partnership

US companies Ammobia and Lummus Technology have entered an agreement to commercialize a modular ammonia production system aimed at lowering project costs and supporting new energy applications. Announced on August 27, the partnership will combine San Francisco-based Ammobia’s “Haber-Bosch 2.0” process with Lummus’ engineering, project delivery, and global licensing capabilities. The companies plan to target power generation and maritime fuel projects worldwide, with the first commercial opportunities set to be identified in the coming months. Modular plants challenge ammonia megaprojects Traditional ammonia production has typically relied on large, capital-intensive plants. Ammobia has instead developed a standardized synthesis loop, or “synloop,” that can be deployed through medium-scale modular plants or added to existing operating facilities. The company claims its reengineered process requires substantially less initial capital than conventional ammonia projects. Its repeatable design is also intended to shorten deployment timelines and reduce development risks. “Ammobia changes the economics of producing ammonia from any energy source and does it in modules rather than the world-scale plants that have defined this industry for a century,” said Karen Baert, Co-founder and CEO of Ammobia. “Customers can add capacity through a greenfield project or an upgrade to an existing operating site. Lummus brings the engineering rigor, project delivery, and global relationships required to deploy it, which lets Ammobia stay focused on advancing the core process,” she added. The technology can work with hydrogen produced from different sources, including gas reforming, electrolyzers, geologic hydrogen, and renewable energy. This allows developers to select feedstocks based on local cost and availability. Lummus adds ammonia to hydrogen portfolio The agreement marks the first time Lummus has added an ammonia production technology to its portfolio. The company will license and deploy Ammobia’s system as a standalone technology or as part of integrated projects using its existing hydrogen technologies. Lummus will also provide engineering expertise, performance guarantees, and project execution support intended to make the modular plants easier to finance. “We have a long track record of partnering with innovators to scale breakthrough technologies that address the evolving needs of the global energy market,” said Leon de Bruyn, President and Chief Executive Officer of Lummus Technology. “Ammobia’s technology is an important addition to Lummus’ portfolio and a leap forward for the industry. This cutting-edge solution has the power to transform ammonia production to be more economical and lower carbon, support emissions reductions in the shipping industry, and significantly reduce project costs,” he added. 441 ammonia-ready ships need fuel Ammonia already supports 70% of fertilizers, which help feed half of the global population. Its market could now expand beyond agriculture, with Grand View Research projecting ammonia production to increase 58% by 2033. Shipping represents one emerging source of demand. As of June 2026, 441 vessels either operating or on order were ammonia-ready or ammonia-fueled. Supplying those ships with cost-competitive ammonia, however, remains a major challenge. Ammobia and Lummus will initially prioritize commercial projects involving maritime fuel and power generation, while Ammobia continues developing applications for fertilizer and industrial production.Get the latest in engineering, tech, space & science - delivered daily to your inbox.Atharva is a full-time content writer with a post-graduate degree in media & amp; entertainment and a graduate degree in electronics & telecommunications. He has written in the sports and technology domains respectively. In his leisure time, Atharva loves learning about digital marketing and watching soccer matches. His main goal behind joining Interesting Engineering is to learn more about how the recent technological advancements are helping human beings on both societal and individual levels in their daily lives.