Yara Clean Ammonia, an ammonia distributor, has signed a time-charter contract with Nippon Yusen Kabushiki Kaisha (NYK) for an ammonia-fuelled medium gas carrier (AFMGC).
The vessel, set for delivery in November 2026, marks a significant step toward sustainable maritime transportation.
Advancing Carbon-Intensity Compliant Supply Chains
Murali Srinivasan, Senior Vice President Commercial at Yara Clean Ammonia stated, “Partnering with NYK allows us to comply with future CO2 emission regulations for sea-going vessels while ensuring our customers receive clean ammonia that meets carbon-intensity standards from well to wake.”
Years of Collaboration Lead to Historic Agreement
Since 2021, Yara Clean Ammonia and NYK have explored the practical application of ammonia-fueled ammonia gas carriers. Their efforts have led to the world’s first time-charter contract for an AFMGC. This vessel type is the preferred choice for transporting ammonia internationally.
Enhancing Operational Efficiency and Flexibility
Csaba Laszlo, Vice President of Ammonia Trade and Shipping at Yara Clean Ammonia, highlighted, “This charter party gives us flexibility in managing carbon emissions. It also helps us control product carbon intensity. We are eager to operate this new technology at peak efficiency”.
Reducing Emissions and Expanding the Ammonia Supply Chain
The AFMGC will significantly cut greenhouse gas emissions from marine transportation while supporting the growth of an ammonia supply chain.
As demand for ammonia rises in the power sector and marine fuel industry, this vessel will provide a more environmentally friendly shipping solution.
Commitment to Net-Zero by 2050
Hironobu Watanabe, Managing Executive Officer, NYK added, “In November 2023, we released the ‘NYK Group Decarbonization Story,’ setting a goal to achieve net-zero GHG emissions by 2050. We see ammonia as a critical alternative fuel in this transition. Partnering with Yara Clean Ammonia, the world’s largest ammonia player, strengthens our efforts to develop next-generation fueled vessels. We look forward to further collaboration in building a sustainable ammonia supply chain”.
A Milestone for Green Shipping
The partnership between Yara Clean Ammonia and NYK represents a major milestone in the shift toward low-carbon shipping.
As per the press release, both companies are pioneering ammonia-fueled vessels. They are leading the way in sustainable maritime transportation and setting new industry standards.
