Legal expert highlights potential insurance challenges for ammonia as marine fuel

Ms Hoyland, known for her expertise in helping stakeholders navigate decarbonisation regulations, addressed a crucial concern regarding the insurability of ammonia as a marine fuel. During the session, she raised a significant point regarding the exclusion of ammonia from the bunker convention, which limits liability in the event of spillage.

In a notable quote, Ms Hoyland explained, "Ammonia does not fall within [the bunker convention] in the way that the fuels of today do." This exclusion, she emphasised, poses a potential challenge in insuring risks associated with ammonia as a marine fuel, as there is currently no liability cap in place.

Discussing the implications of unlimited liability, Ms Hoyland remarked, "If you have a liability which is unlimited, there will be a reluctance to ensure that risk because you do not have a cap on the liability." This underscores the urgency of addressing the regulatory gap to facilitate the adoption of ammonia as a marine fuel.

Ms Hoyland further highlighted ongoing efforts by the Comité Maritime International to address this issue, indicating a proactive approach towards finding a solution. She expressed optimism about the development of new legislation to fill the existing gap and provide a framework for insurability in the context of ammonia as a marine fuel.

Looking ahead, Ms Hoyland stressed the need for collaborative efforts to navigate the evolving regulatory landscape and seize opportunities for decarbonisation in the shipping industry. Reflecting on the conference, she commended the diverse discussions covering geopolitical, technical and climate-related topics, noting the importance of identifying both challenges and opportunities in the pursuit of sustainability.

Ms Hoyland’s insights underscored the importance of proactive regulatory measures to ensure the insurability of ammonia as a marine fuel, paving the way for its widespread adoption in the maritime sector.