NYK and Yara Sign First Charter for Ammonia-Fueled Medium Gas Carrier

Efforts to develop the first ammonia value chain have taken another step forward with Japan’s NYK Line and Yara Clean Ammonia concluding the first charter for an ammonia-fueled medium gas carrier. NYK ordered the vessel’s construction in 2023 as the next step in a project initiated in 2021 as part of Japan’s Green Innovation Project Fund of the New Energy and Industrial Technology Development Organization (NEDO).

The companies believe this is the first commercial contract for a vessel of this type and represents a key step in putting the vessel into service. The project was designed to overcome key hurdles in the launch of ammonia as maritime fuel and to serve as a demonstration contributing to the decarbonization of shipping.

Starting in 2021, the project was focusing on the key challenges of developing an ammonia-fueled combustion engine. They highlighted the hardly-flammable nature and low energy density of ammonia as well as the challenge that combustion generates about 300 times more N2O emissions, which need to be suppressed. The toxicity of ammonia also requires steps to prevent leakage and safety measures for the crew.

Japan Engine Corporation and IHI Power System were working on the engine and fuel supply system. The goal was a main engine with an ammonia-fuel mixed combustion rate of up to 95 percent and an auxiliary engine with an ammonia-fuel mixed combustion rate of 80 percent or more. This, they said, would achieve an 80 percent or more reduction in GHG emissions.

NYK and Nihon Shipyard were also working on the design of the vessel. A medium-sized gas carrier (40,000 cbm capacity) with an overall length of 590 feet (180 meters) was selected. They reported this was the currently most common size for marine transport of ammonia. The hull forms were optimized, and they set a goal of an ammonia-loading capacity equivalent to or more than that of conventional vessels.

The project received approval in principle from ClassNK in September 2022. After completing designs and successful tests of engines by Japan Engine and IHI Power Systems, the construction order was signed in December 2023. They said the project was in full swing toward its completion in November 2026. The vessel will be built at the Japan Marine United Corporation yard in Ariake, Japan, with a two-stroke engine produced by Japan Engine Corporation.

Yara Clean Ammonia reports the charter will provide the company with great flexibility to manage carbon emissions and product carbon intensity. The vessel’s entry into service will be a key milestone for the development of ammonia-fueled vessels. 

The first-ever ammonia bunkering took place in 2024 as demonstrations with NYK putting into service the first ammonia-fueled tugboat. Other engine manufacturers, including MAN Energy Solutions and WinGD, each recently reported key progress in moving to full-power testing and verification of their ammonia-fueled engines. Wind GD predicted it could deliver its first ammonia-fueled engine by mid-year. DNV has forecast the first ammonia-fueled larger vessels might be delivered in 2025, while it expects the segment to expand quickly between 2026 and 2028.