ESG trendsetter Eastern Pacific Shipping is looking to have ammonia as fuel for its next generation of container ships.
The Idan Ofer-controlled company has inked a memorandum of understanding (MoU) with South Korea’s Samsung Heavy Industries, engine maker MAN ES and engine manufacturer Hanwha Engine on joint development project of ammonia-powered container vessels.
The company 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, chief executive of Eastern Pacific Shipping, 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 also 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 for ammonia as fuel does not come as a surprise for the shipping industry as the company is one of the first movers in shipping energy transitions.
It was one of the early companies to have ordered LNG dual-fuelled large container ships back in 2017, and has extended LNG fuelling to its bulkers, tankers and car-carriers.
On ammonia as fuel, Eastern Pacific already has several ammonia dual-fuel propulsion systems vessels on order at shipyards. It is building 14 newcastlemax bulk carriers and eight very large ammonia carriers, or VLACs.
Meanwhile, Hanwha Power Systems inked an MoU with Peter Livanos-backed GasLog to convert its LNG carrier propulsion system to an ammonia gas turbine.
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.
Justine Lee, chief executive of Hanwha Power Systems, 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.”
A total energy equipment and marine solutions company of Hanwha Group, Hanwha Power Systemshas been actively developing an innovative Ammonia (NH3) Combustion System to meet the anticipated requirements of the IMO and European Union’s Fit for 55 package.
