Ro-ro vessel operator Hoegh Autoliners has agreed a deal with Yara Clean Ammonia for the future supply of clean ammonia fuel.
In May 2023, the two companies signed a Letter of Intent to partner around the supply, potential distribution, and delivery for consumption of clean ammonia for the Höegh Autoliners’ new Aurora Class PCTC vessels. The 12 Aurora Class vessels will be the largest and most environmentally friendly car carriers to be built, equipped to operate on zero-carbon ammonia and methanol.
The partnership follows separate initiatives in both companies in two important parts of the value chain, namely supply and demand. For Höegh Autoliners, this represents another step towards full decarbonisation of its customers’ supply chains.
Andreas Enger, CEO Höegh Autoliners said: “We are pleased to collaborate with a strong Norwegian global player to meet this goal.”
Both companies consider clean ammonia, produced either with renewable energy or from natural gas with carbon capture, as a future maritime fuel with high potential that will contribute to solving the GHG emission challenges associated with global maritime transportation. As part of the Letter of Intent, the companies will consider the supply of blue ammonia where up to 95% of the CO2- emissions are captured and permanently stored.
Norway has set ambitious targets for cutting emissions from domestic shipping by 50 % by 2030. Clean ammonia is regarded as a solution that can contribute to reducing the world’s dependency on fossil fuels. As the world’s largest ammonia distributor, Yara Clean Ammonia expects to be a significant contributor on the path towards zero emissions in the maritime sector.
Magnus Krogh Ankarstrand, President Yara Clean Ammonia said: “We aim at significantly strengthening our leading global position, unlock the green and blue value chains, and driving the development of clean ammonia globally. Building on Yara’s leading experience within global ammonia production, logistics and trade, Yara Clean Ammonia works towards capturing growth opportunities in net-zero fuel for shipping.”
Höegh Autoliners and Yara are both members of the First Movers Coalition, a World Economic Forum-backed initiative focused on reducing emissions in the ‘hard-to-abate’ sectors. Höegh Autoliners has committed, through its membership of the First Movers Coalition, to powering at least 5% of its deep-sea operations with green ammonia by 2030. The goal is to run its fleet on at least 100,000t of green ammonia by that same year.
Hoegh’s Aurora Class vessel is designed for a greener future. Delivery of the first twelve Auroras, with the delivery of two every six months starting from H2 of 2024, is a decisive step on Höegh Autoliner’s path to zero. The Auroras will be the first in the PCTC segment to receive DNV’s ammonia and methanol-ready notations with the main engine provided by MAN and the bridge system supplied by Kongsberg Maritime.
Yara has been producing ammonia for almost a century and has extensive experience in ensuring that production, storage and bunkering of ammonia goes without negative impact to crew or environment.
Ankarstrand said: “Together with Azane Fuel Solution, we’re developing the world’s first bunkering and distribution network for clean ammonia to supply ships with a net-zero fuel. We already have a global distribution network for ammonia and we’re working closely with port authorities worldwide to make the bunkering of clean ammonia available for deep-sea shipping.”
Currently, two world scale ammonia plants are being developed by Yara in the US where up to 95% of the CO2 emissions will be captured and permanently stored. Two green ammonia pilot projects are under construction and renewable energy is used to produce fossil-free ammonia.