• Energy Research
• 2021-2025close

One of the consequences of the conflict in Ukraine relates to the growing shortfall in global ammonia production. There are additional negative global impacts on the availability of fertilizers and prices of ammonia (NH3). The shortage in ammonia production does not only influence the agroindustry but also the global shipping industry, as ammonia is positioned as a promising zero-carbon fuel and as a storage and transport medium for hydrogen. There are plans underway to start ammonia production in Estonia to minimize the consequences of the import stop of Russian ammonia in the context of the Ukrainian crisis. This study investigated the Baltic Sea Region (BSR) ammonia market and analyzed the economic implications of building an ammonia plant within the BSR. Using fuzzy real options models as the conceptual framework, together with secondary data analysis, case studies and expert interviews, the authors chart possible courses for the construction of ammonia production facilities within the region. Based on the case of the NH3 production plant, as well as the underlying distribution system, the study provides new economic perspectives for lower carbonization for the shipping industry, an attempt at creating a model for other European regions toward climate change mitigation.

The study calculates the costs of the environmental impact of cruise shipping to determine how and to what extent the cruise industry has evolved towards clean shipping in the Baltic Sea Region. While environmental regulations connect directly to emissions reduction, measures to ensure a clean shipping industry are beyond regulatory measures. The sector should be able to fully operate within an environmentally, socially, and financially acceptable structure. A holistic shipping pollution and emissions index, for example, must also include financial or economic quantification of the major environmental impacts. Thus, using empirical data collated from the industry, uncontrolled observations, and experts’ interviews, we present the annual CO2 emissions and the related emissions costs of a typical 7-day cruise that operates within the Baltic Sea region (BSR) as well as a waste management report from the port of Saint Petersburg. The result is a detailed energy demand and cost inventory assessment of cruise trips and their overall impact on the clean shipping campaign of the maritime industry. The focus on a BSR cruise and a port city led to realistic and reliable results since the Baltic Sea represents a well-defined macroregion with clear ports and cruising structures suitable for cross-sectoral activities.