Sumitomo Corporation of Japan and Norwegian ro-ro operator Höegh Autoliners have committed to an agreement to look into the supply of clean ammonia as a bunker fuel at the ports of Singapore and Jacksonville, US from 2027 onwards.
The two companies have formalised their commitment through a Letter of Intent (LoI) to collaborate on the supply and delivery of clean ammonia as a next-generation sustainable maritime fuel for Höegh Autoliners’ upcoming Aurora Class PCTC vessels. The twelve vessels are set to become the largest and most eco-friendly car carriers afloat, boasting the capability to run on zero-carbon ammonia or carbon neutral methanol. The LoI symbolises a remarkable step in the realisation and development of the production and consumption of clean maritime fuels. The collaboration hopes to stimulate the upscaling of the supply and demand of clean ammonia for maritime usage.
Höegh Autoliners and Sumitomo Corporation are strongly endorsing the transition toward sustainable long-distance maritime transport and the adoption of eco-friendly fuels and propulsion systems. Both companies view clean ammonia as a promising future fuel for the maritime industry, offering substantial potential in addressing the challenges associated with GHG emissions in global shipping. To support this vision, both entities have launched a range of initiatives throughout the ammonia value chain, with a primary focus on making clean ammonia a viable choice for maritime fuel and thereby achieving significant reductions in emissions from the global shipping sector.
Moving forward, the companies will embark on a comprehensive evaluation of the compatibility between the PCTC vessels and the ammonia bunkering facilities at the identified bunker ports. They will endeavour to make necessary adjustments to specifications for both ‘shore-to-ship’ and ‘ship-to-ship’ bunkering operations and undertake safety assessments to establish standardised operational protocols and regulations in close coordination with pertinent government agencies.
Höegh Autoliners CEO Andreas Enger said: “The commitment with Sumitomo Corporation is a strong strategic move in our efforts to offer our customers net-zero transportation globally, addressing the need for sustainable fuel availability in key ports such as Singapore and Jacksonville. Pioneering net-zero transportation on ammonia-powered vessels places us at the forefront of the international shipping industry, and we take pride in collaborating with Sumitomo Corporation to achieve this significant milestone.”
Ammonia, which does not emit any CO2 when combusted, has long been considered one of the most promising alternative marine fuels to reduce GHG direct emissions within the shipping industry which aligns with the revised IMO strategy to reach net-zero emissions from international shipping ‘close to 2050’ on a life-cycle basis.
In compliance with requirements on carbon intensity from automobile manufacturers, Sumitomo Corporation supplies various types of clean ammonia; ‘green’ ammonia produced from renewable energy, ‘blue ammonia’ with the CO2 from the production processes captured and permanently stored and ‘bio ammonia’ produced from renewable natural gas, certified by International Sustainability & Carbon Certification (ISCC) in accordance with the EU Renewable Energy Directive.
Koji Endo, GM Energy Division, Sumitomo Corporation, said: “There is a compelling need for organisations to collaborate in the worldwide endeavour to attain future net zero goals. Our collaboration with Höegh Autoliners embodies this commitment and is geared towards being a trailblazer and facilitator of the global maritime decarbonisation effort. While the adoption of electric vehicles is important for greening land transportation systems worldwide, it is equally important to address the decarbonisation of the maritime transportation process used to deliver these vehicles from the production facilities to their destinations. In this context, Sumitomo Corporation supports Höegh Autoliners by exploring the potential to provide clean ammonia as a bunker fuel for their modern vessels at strategic port locations.”
Höegh Autoliners and Sumitomo Corporation are both working with the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping. Höegh Autoliners has joined the Center as a mission ambassador. The partnership accelerates its transition towards a more sustainable future by collaboration with like-minded organizations and leveraging the Center’s unique ability to develop and implement breakthrough decarbonization projects. Sumitomo Corporation is a strategic partner and Advisory Board member of the Center, committing to a long-term strategic collaboration about the development of zero carbon technologies for the maritime industry. Experts seconded from Sumitomo Corporation have been working on R&D projects in the Center’s portfolio and contributing to the development of methodologies and optimised pathways for safe and sustainable fuel solutions for shipping.
Bo Cerup-Simonsen, CEO Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping, said: “We applaud Sumitomo Corporation and Höegh Autoliners on their landmark agreement to pursue the use of clean ammonia as a bunker fuel from 2027 onwards. The speed of the transition relies on the swift collective action of leaders in the eco-system to implement viable sustainable solutions and this partnership exemplifies the bold, forward-thinking, and actionable commitment required. At the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping, we are proud to be collaborating with progressive companies like Sumitomo Corporation and Höegh Autoliners, and we will leverage learnings on our independent platform to accelerate the scalable transition of the wider eco-system.”
Höegh Autoliners has signed a strategic partnership agreement with a major international car producer, spearheading the transport of cars, with a strong focus on Electric Vehicles (EVs), from Asia to both Europe and the US, which signifies a substantial leap towards a greener and more sustainable future. The car producer and Höegh Autoliners share the same ambition to minimise the carbon footprint of the products and achieve climate neutrality by 2040. The companies are also determined to make a significant and lasting impact by tackling global sustainability challenges head-on.
Sumitomo Corporation hasreceived Approval in Principle (AiP) from ABS for the design of an ammonia bunkering vessel jointly with partners of a consortium, consisting of A.P. Moller-Maersk, Fleet Management Limited, the Center, Sumitomo Corporation, Seatrium, ABS, Kawasaki Kisen Kaisha and Maritime and Port Authority of Singapore. In addition, Sumitomo Corporation has been developing a comprehensive and competitive supply chain for the provision of ammonia ship-to-ship bunkering on the US East Coast including the ports of Jacksonville and Brunswick, the busiest auto ports in the country.
