Ammonia as a shipping fuel
Jun 23 2023
Yara Clean Ammonia and Bunker Holding have joined forces by signing a Memorandum of Understanding (MOU) to pave the way for ammonia as a sustainable fuel in the shipping industry.
This collaboration aims to expedite the adoption of ammonia as a marine fuel by exploring opportunities to supply clean ammonia to pioneering companies in the shipping sector. The focus will be on key trade routes and bunkering ports across different regions worldwide.
The MOU between Yara Clean Ammonia (YCA) and Bunker Holding Group signifies their shared commitment to developing the market for clean ammonia as a shipping fuel. By bringing together a global supplier of clean ammonia and the largest bunker supplier with numerous end users, this agreement covers multiple geographical areas and aligns with various First Mover initiatives.
Ammonia emerges as an efficient and sustainable solution for decarbonizing maritime transport. It is projected that by 2026, shipping companies will increasingly adopt this eco-friendly fuel, potentially reducing CO2 emissions by up to 100% over the fuel's lifecycle.
The development and utilization of sustainable fuels, such as clean ammonia, contribute to several Sustainable Development Goals outlined in the 2030 Agenda. These goals include affordable and clean energy (SDG 7), decent work and economic growth (SDG 8), responsible consumption and production (SDG 12), and climate action (SDG 13).
Murali Srinivasan, the Senior Vice President of Commercial at Yara Clean Ammonia, expressed enthusiasm about collaborating with Bunker Holding to expedite the net-zero carbon energy transition in the shipping industry through the use of clean ammonia. Leveraging YCA's global assets, logistics capabilities, and Bunker Holding's position as the world's largest bunker player, this partnership aims to ensure a safe, reliable, and secure supply of clean ammonia as a shipping fuel, bolstering the resilience and strength of the value chain in the future.
Valerie Ahrens, the Senior Director of New Fuels and Carbon Markets at Bunker Holding, shared her excitement about working with Yara Clean Ammonia to establish a credible commercial offering for low- and zero-carbon ammonia supply to their global customer base. Bunker Holding is committed to playing a leading role in facilitating the decarbonization of the maritime sector. Therefore, partnering with reliable and trustworthy allies like YCA, who can guarantee the scale and security of low-carbon fuel supply, is of utmost importance.
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