Eastern Pacific Shipping is considering ammonia as the fuel for its next generation of container ships, reinforcing its position as a leader in environmental, social and corporate governance initiatives.
The Idan Ofer-controlled company has signed a memorandum of understanding with South Korea’s Samsung Heavy Industries, engine maker MAN Energy Solutions and engine manufacturer Hanwha Engine on the joint development of ammonia-powered container vessels.
Eastern Pacific said the partnership, signed during Gastech last week, reinforces its commitment to working with industry partners on sustainable solutions to support the shipping industry’s decarbonisation goals.
Cyril Ducau, Eastern Pacific chief executive, said: “Our industry is possibly entering a new area with ammonia dual-fuelled vessels and so far orders have only been placed in the ammonia carriers and large bulkers segment, by us and a few other shipowners.
“On the container segment, not much has been done until now. We are working with our partners, leveraging on knowledge and expertise from all parties to develop a solution that would potentially be interesting to liner operators.”
Eastern Pacific’s pursuit of ammonia as fuel comes as no surprise to the shipping industry, as the company has been a pioneer in the shipping energy transition.
The company was among the first to order LNG dual-fuel large container ships in 2017 and has since expanded LNG fuelling to its bulkers, tankers and car carriers.
It has several vessels with ammonia dual-fuel propulsion systems on order at shipyards, including 14 newcastlemax bulkers and eight very large ammonia carriers.
Meanwhile, Hanwha Power Systems has signed an MoU with Peter Livanos-backed GasLog to convert its LNG carriers’ propulsion system to ammonia.
Through this agreement, the two companies will discuss in more detail the demonstration plan to replace the existing fossil fuel-powered vessels with eco-friendly ammonia gas turbines.
Last month, Hanwha Power Systems and Hanwha Ocean completed preliminary engineering and economic feasibility reviews for LNG carrier retrofitting with the support of GasLog.
With the signing of the MoU, Hanwha Power Systems and GasLog will continue their collaboration focusing on performance, economic and compliance assessments from a comprehensive perspective to promote the application of ammonia gas turbines in vessel retrofits.
Hanwha Power Systems chief executive Justin Lee said: “If the demonstration of ammonia gas turbines for ship propulsion is successful, it will be a major turning point in the global shipbuilding and shipping industry, paving the way for eco-friendly fuel propulsion in vessels.”
Hanwha Power Systems is an energy equipment and marine solutions subsidy of Hanwha Group. It had been developing an innovative ammonia combustion system to meet the anticipated requirements of the International Maritime Organization and European Union’s Fit for 55 package.
