(Oslo / Norway) – The Norwegian ammonia trader Yara Clean Ammonia AS, the logistics group NorthSea Container Line AS (NCL) and the Norwegian manufacturer of fertilizers and industrial gases Yara International ASA want to launch the “world's first container ship” powered by clean ammonia. The sea vehicle called “Yara Eyde” will one day serve a trade corridor between Norway and Germany.
Planned route of the “Yara Eyde” from Oslo to Hamburg. © Yara International ASA
The consortium names the route Oslo, Brevik, Hamburg and Bremerhaven as the route. Emission-free trading could start from 2026. However, Yara will not primarily invest in the ownership of ships, but will also use funds strategically for the development of the production and logistics segment, says Magnus Krogh Ankarstrand, head of Yara Clean Ammonia. For liner operations, Yara and NorthSea want to establish the joint venture “NCL Oslofjord AS” once all official approvals have been received. The financier Enova SF, which is subordinate to the Norwegian Ministry of the Environment, and the state economic development agency Innovation Norway are supporting the first pilot projects. Enova has already provided a good 40 million Norwegian crowns (3,4 million euros) for the “Yara Eyde”.
Azane is building a bunker network for ammonia
Yara is also trying to ensure that the infrastructure grows. Yara Growth Ventures AS, the venture investment arm of Yara International ASA, and Navigator Holdings Ltd. announced a financing round of €5,4 million to invest in Azane Fuel Solutions AS. Both companies have each acquired a 14,5 percent stake in the Norwegian start-up.
Azane, a joint venture between Norwegian companies Econnect Energy AS and Amon Maritime AS, was founded in 2020. The company develops technologies and services for the handling of ammonia fuels for shipping. The goal is to build a global bunker network. With investments from Yara and Navigator, Azane is expected to begin operations in Norway in 2024.
Rendering of a ship refueling with liquid ammonia at an Azane bunker terminal. © Yara International ASA
It is assumed that operations will begin in 2025, says Yara. According to the information, a barge will supply the “Yara Eyde” with the low-emission fuel in Brevik. “If we produce ammonia from renewable energy or with natural gas, where up to 95 percent of CO2 emissions are captured and permanently stored, clean ammonia will quickly become a good solution for reducing carbon emissions in the maritime sector,” says Ankarstrand.
The joint venture “NCL Oslofjord AS” is responsible for regular operations. © Yara International ASA
There are currently no bunker facilities for ammonia. “By enabling Azane to be the first to provide this important piece of infrastructure, we aim to fill a gap in the supply chain needed to fuel ships,” says Stian Nygaard, Investment Director, Yara Growth Ventures.
Navigator Chief Executive Officer Mads Peter Zacho expects global demand for ammonia to triple by 2050, with a significant portion coming from marine fuel. Navigator Holdings Ltd. is the owner and operator of 56 liquid gas tankers, 25 of which are also suitable for the sea transport of other petrochemical gases such as ethylene and ethane as well as ammonia.
Cooperation also with car transporters
At the beginning of November, Yara Clean Ammonia announced that it was also entering into a partnership with Höegh Autoliners and had agreed on a future supply agreement for clean ammonia in order to reduce emissions in maritime transport. Höegh Autoliners is a provider of sea transport services in the roll-on-roll-off (RoRo) segment and operates a global network of ocean transport with Pure Car and Truck Carrier (PCTC) vessels.
The companies had already signed a memorandum of understanding in May 2023 to work together to supply clean ammonia for Höegh Autoliners' new Aurora class PCTC ships. Once completed, the twelve ships will be “the world’s largest and most environmentally friendly car transporters ever built.” They are powered by carbon-free ammonia and methanol. Delivery will begin every six months in the second half of 2024. MAN is supplying the machines and Kongsberg Maritime is installing the superstructure.
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Yara wants to establish regular services with ammonia-powered container ships between Norway and Germany. © Yara International ASA
