Navigator Joins with Amon to Build Two Ammonia-Fueled Gas Carriers
The ammonia-fueled vessel sector took another major step forward with the news that Navigator Holdings and Amon Maritime have formed a new joint venture and ordered two ammonia-fueled liquefied ammonia carriers. The news came a day after WinGD reported the installation of the first ammonia-fueled marine engine into a newbuild, and the new joint venture builds on Amon Maritime’s mission to lead the green shift in shipping.
Navigator will own 80 percent of the new company to be known as Navigator Amon Shipping, with Amon owning 20 percent. The company will place the vessels under long-term charters to blue-chip industry leaders. It anticipates the vessels will be on five-year charters. Navigator is already the owner/operator of the world’s largest fleet of handysize liquified gas carriers.
The construction order was placed with Nantong CIMC Sinopacific Offshore & Engineering in China. Navigator reports an average price for each vessel of $84 million. Deliveries are scheduled for June and October 2028. Operating on ammonia as their primary fuel, the vessels will transport ammonia and be capable of also transporting liquefied petroleum gas with a capacity of 51,530 cubic meters. The project is receiving a NOK 90 million ($9 million) investment grant from Norway’s Enova.
“Expanding our fleet with two modern ammonia carriers capable of using clean ammonia as a fuel, operating in a long-term time charter, is a strategic enabler in meeting the growing demand for a sustainable fuel source in a net-zero economy,” said Mads Peter Zacho, Chief Executive Officer of Navigator. “These modern vessels will be equipped with newly developed technologies that comply with present and future environmental regulations and will thereby deliver great value to both our customers and our shareholders.”
Amon had highlighted the opportunities in ammonia in June when it received its grants from Enova. It said that ammonia is currently primarily transported on a Medium Gas Carrier (MGC). Because the ship is already designed for transporting ammonia, it said that the relative additional cost to convert to ammonia-fueled propulsion in this segment compared to conventional ships will be less than in most other segments.
As it seeks to expand ammonia into more segments of shipping, Amon Maritime also reported it would launch Amon Bulk after securing a NOK 253 million ($24.6 million) grant from Enova to support the construction of two ammonia-powered bulk carriers. The plan for the bulkers calls for one Capesize (180,000 dwt) vessel designed for long-haul transport of heavy bulk commodities. The second vessel will be a Kamsarmax bulk carrier (80,000 to 85,000 dwt). The smaller vessel, it said, would offer greater port flexibility while maintaining high cargo capacity and energy efficiency.
Amon Bulk reported it is entering the next phase of shipyard evaluation and the tendering process for these vessels. The aim is to order these vessels for delivery by 2029.
It said the developments in ammonia are another key step toward decarbonizing deep-sea shipping.