Yara Clean Ammonia has signed a time charter with Japanese shipowner NYK for an ammonia-fuelled medium gas carrier (MGC) newbuilding in what the two companies are heralding is a world first.
The Japanese-flagged, 40,000-cbm MGC is due to be delivered in November 2026 to the subsidiary of ammonia producer and distributor Yara International.
No charter details were given.
NYK contracted a lone ammonia-fuelled MGC at Japan Marine United’s Ariake Shipyard in January last year.
The vessel is set to be fitted with a main ammonia dual-fuel two-stroke engine provided by Japan Engine Corp with IHI Power Systems supplying a dual-fuel four-stroke auxiliary engine.
NYK said it has been studying the practical application of an ammonia-fuelled ammonia gas carrier inconjuction with Yara Clean Ammonia since 2021.
The shipowner said the use of an ammonia-fuelled MGC will “greatly contribute to significantly reducing greenhouse gas 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, for marine fuel, and the like”.
The deal was signed by Yara Clean Ammonia vice president for ammonia trade and shipping Csaba Laszlo and NYK managing executive officer Hironobu Watanabe.
Yara Clean Ammonia senior vice president commercial Murali Srinivasan said the collaboration with NYK allows the company “not only to comply with future regulations related to CO2 emissions from seagoing 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”.
Laszlo said the charterparty will give the company great flexibility to manage carbon emissions and product carbon intensity.
Watanabe added: “We have been developing an ammonia-fuelled vessel because we believe that using alternative fuels, especially ammonia, is essential to reaching the net-zero goal. We will continue to work with Yara on building an ammonia supply chain from various aspects, not only in the maritime transportation of ammonia.”(Copyright)
