As the IMO finalises global mandates for maritime decarbonisation, Alexander Tancock, CEO of InterContinental Energy (ICE), discusses how the timing for green e-fuels couldn’t be better – and how it is now up to the shipping industry to commit.
If we can’t deliver ammonia near $650 per tonne, in large volumes, we don’t have a market. But if we can, and I believe we can, shipping has a viable, scalable path to net zero.
ICE has spent the past decade building a pipeline of giga-scale green hydrogen and ammonia projects designed with one mission: deliver up to 46m tonnes per annum of cost-competitive green e-fuels by 2050.
With the International Maritime Organization (IMO) set to enforce binding emissions reductions from 2028, and with alternative fuel propulsion systems finally approaching readiness, the question for shipping is no longer when to act, but whether the fuel will be there in time. The answer is it can be…but the shipping industry needs to commit to offtake soon because of the long lead times needed for the best projects to proceed.
ICE’s Western Green Energy Hub (WGEH) in Western Australia is a good example of the sort of project that shipping will rely on for low-cost and high-volume green e-fuels. Already in development for five years, it spans an area over half the size of Denmark, will have a production capacity of up to 28m tonnes per annum of green ammonia, and is targeting first phase production in the early 2030s at a price of sub-$650 a tonne. That timeline is no accident: When we look at engine readiness and the IMO mandates – the early 2030s are when we see significant demand emerging and we are syncing our delivery to that curve.
And it seems the shipping sector is paying attention. Two years ago, InterContinental Energy wasn’t on the shipping community radar. Now, I was just invited to deliver the opening keynote speech at Nor-Shipping’s Maritime Hydrogen Conference. The change is real.
That change is being driven by the IMO’s Net-Zero Framework, which includes a global fuel standard and tiered GHG pricing and penalties. With well-to-wake accounting on the horizon, scalable green ammonia mega projects, with zero point-of-use emissions, become an increasingly attractive long term supply choice.
But the shipping sector faces a moment of truth: Supply and demand must evolve together. Without credible, bankable demand signals, even the most advanced projects won’t make it to final investment decision (FID), and therefore supply will not materialize in time.
A scalable system for a global challenge
At the heart of ICE’s delivery strategy is our P2(H₂)Node architecture: a patented modular ‘Lego block’ architecture that combines renewable generation, electrolysis, and ammonia synthesis at the point of resource. By eliminating long-distance power transmission and centralising infrastructure around scalable modules, we are cutting capex by as much as 20% – leading to a direct reduction in green e-fuel prices.
Our nodes aren’t just a technical configuration; they’re a strategy to reduce project risk and increase customer confidence. Each node functions as a self-contained production unit. With a gigawatt-scale layout optimised for solar and wind co-location, our approach not only reduces cost, but also makes green certification simple, since only renewable energy is used for inputs.
Green ammonia production at this scale requires not just good solar and wind conditions, but integrated logistics, port infrastructure, and a development strategy that spans decades. We are building in Australia and Oman because the conditions, both natural and political, are aligned for this success.
Building the first node for a project is the hardest part. It needs support, it needs government help. But once it’s built, every node after that is cheaper, faster, and easier – and that’s how we can scale product and continually reduce cost to customers. WGEH isn’t in fact one mega project, it is 35 repeatable Lego blocks that will be built in series, one after the other, delivering increasing annual output for more than two decades.
For shipping, this isn’t just theoretical anymore, and if demand warrants, we are ready to double the construction rate. We already have the engineering and land access; it’s purely a function of demand.
The role of the Australian government has been vital. Programmes like Hydrogen Headstart, the Hydrogen Production Tax Incentive, and dedicated export frameworks offer a level of certainty few countries can match. We have always chosen partners carefully. Not just financial or technical, but geopolitical. Governments that understand what’s at stake – and Australia gets it.
The shipping community’s move to make
Some shipowners are already taking steps by entering MOUs, conducting bunkering trials, and retrofitting vessels to be ammonia-ready. But the broader industry has yet to deliver the bold procurement commitments that would catalyse low cost production at scale.
The reward for those who act early could be significant. Under the IMO’s Net-Zero Fund model, early adopters will likely benefit from credit trading mechanisms and preferential financing. Regulatory momentum is aligned with strategic advantage.
Green ammonia is no longer a theoretical future fuel. It is a ready-now solution that can scale with demand and meet compliance head-on…provided customers commitment.
We’ve built the model. The infrastructure is planned. The economics work. What’s needed now is offtake. If the demand signal comes, we’ll deliver. But this time, the signal has to come from shipping.
