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Construction Order Placed for Ammonia-Powered Containership

ammonia fueled containership
Yara Eyde is expected to be delivered in mid-2026 and operate on ammonia fuel in the Baltic region (CMB.TECH)

Published Feb 16, 2024 12:41 PM by The Maritime Executive

 

Plans to launch possibly the world’s first ammonia-powered containership are moving forward with CMB.TECH reporting that the construction order for the vessel has been executed and that it is expected to be delivered by mid-2026. Yara Clean Ammonia, North Sea Container Line, and Yara International announced the project last year as one of several supported by the Norwegian Government through its Enova investment fund to decarbonize shipping.

The construction order was completed with the Qingdao Yangfan Shipbuilding company in China, CMB.TECH reports. The company established by Belgium’s Saverys family is at the forefront of the development and launch of decarbonization technology actively pursuing ammonia and hydrogen. They have already introduced hydrogen-powered vessels and ordered several ammonia-ready vessels.

The containership which will be named Yara Eyde will be owned by Delphis, the container division of CMB.TECH, which is in the process of merging with Euronav to execute the Savery’s vision for decarbonization. According to the Saverys, the Yara-NCL project chose to partner with CMB.TECH because of its expertise and work with ammonia and hydrogen engines.

Yara Clean Ammonia and North Sea Container Line have agreed to form a joint venture, NCL Oslofjord, which will operate the 1,400 TEU ice-class containership under a 15-year deal with CMB.TECH. The aim is to become the world’s first line to focus exclusively on ammonia-powered ships.

“This innovative project is an important milestone for the decarbonization of shipping and reducing greenhouse gas emissions in Europe, demonstrating that clean ammonia can provide cost-effective and environmentally friendly maritime transport.” Said CMB.TECH announcing the construction contract.

The Yara Eyde is reported to be optimized for the trade corridor between Norway and Germany and will operate between Oslo, Porsgrunn, Hamburg, and Bremerhaven. Yara International has joined the project as a cargo owner committing to ship fertilizer produced in Porsgrunn to Germany aboard the ship when it is launched. NCL Oslofjord will also be marketing the service to other Norwegian shippers as an emission-free option to move goods.

“To succeed in decarbonizing shipping, low-emission technologies must be brought to commercial scale within the next decade. It is imperative that carriers are incentivized to choose low-carbon fuel,” said Magnus Krogh Ankarstrand, President of Yara Clean Ammonia.

The companies have not released the dimensions or other details of the vessel. In their application to Enova, the project said the containership would be “powered by ammonia with a battery pack of 250 kWh and the option of shore power.”

The project was awarded approximately $3.6 million by Enova in September 2023 to proceed with the development and launch of the vessel. The Norwegian fund awarded the money as part of its total $63 million program of grants announced for projects to decarbonize shipping.