AMMONIA distributor Yara Clean Ammonia Switzerland has signed a time-charter contract with Nippon Yusen Kabushiki Kaisha (NYK) for an ammonia-fueled medium gas carrier (AFMGC).
The companies have called the signing the “world’s first” time charter of an AFMGC, the most popular type of vessel for the international maritime transportation of ammonia.
NYK said the use of an AFMGC will greatly contribute to reducing GHG emissions from marine transportation, and developing an ammonia supply chain by providing a more environment-friendly means of ammonia transport as demand grows for ammonia use in the power sector, and for marine fuel.
Hironobu Watanabe, managing executive officer of NYK said, “We have been developing an ammonia-fueled vessel because we believe that using alternative fuels, especially ammonia, is essential to reaching the net-zero goal”.
“We are delighted to have concluded this time-charter contract with Yara Clean Ammonia, the world’s largest ammonia distributor, which has highly evaluated the AFMGC we develop with our partner companies as a next-generation fueled vessel.
“We will continue to work with Yara on building an ammonia supply chain from various aspects, not only in the maritime transportation of ammonia.”
The 180-metre length overall vessel is to be delivered in November 2026, and is flagged to Japan.
Murali Srinivasan, senior vice president commercial at Yara Clean Ammonia, said “Our successful collaboration with NYK enables us not only to comply with future regulations related to CO₂ emissions from sea-going vessels but also helps us to ensure that our customers can receive carbon-intensity compliant clean ammonia throughout our supply chain from well to wake”.
Vice president ammonia trade & shipping at Yara Clean Ammonia, Csaba Laszlo said “I am pleased to have concluded this charter party which will give us great flexibility to manage carbon emissions and product carbon intensity.
Mr Laszlo said he looks forward to a successful cooperation in operating the new technology to its best efficiency.
In November 2023, NYK released its ‘NYK Group Decarbonization Story’ declaring a target of achieving net-zero GHG emissions by 2050.
