Höegh Autoliners partners with Yara Clean Ammonia for clean ammonia supply

Ammonia distributor Yara Clean Ammonia and ocean transportation provider Höegh Autoliners have agreed on a future supply deal for clean ammonia.

In May 2023, the two companies signed a letter of intent to partner around the supply, potential distribution and delivery for consumption of clean ammonia for the Höegh Autoliners’ new AuroraClass PCTC vessels. According to the partners, the 12 Aurora Class vessels will be the world’s largest and most environmentally friendly car carriers ever built, equipped to operate on zero-carbon ammonia and methanol. The partnership follows separate initiatives in both companies in two important parts of the value chain, namely supply and demand.

Andreas Enger, CEO of Höegh Autoliners, said, “This is exactly the type of collaboration that will accelerate a push toward net-zero shipping in the deep-sea segment of the industry. For Höegh Autoliners, this represents another step toward full decarbonization of our customers’ supply chains, and we are pleased to collaborate with a strong Norwegian global player to meet this goal.”

Both companies consider clean ammonia, produced either with renewable energy or from natural gas with CCS, as a future maritime fuel with high potential that will contribute to solving the greenhouse gas emission challenges associated with global maritime transportation. As part of the letter of intent, the companies will also consider the supply of blue ammonia where up to 95% of the CO₂ emissions are captured and permanently stored.

Norway has set ambitious targets for cutting emissions from domestic shipping by 50% by 2030. In July 2023, the International Maritime Organization (IMO) announced plans to reach zero emissions for international shipping by 2050. Clean ammonia is a solution that can contribute to reducing the world’s dependency on fossil fuels.

Magnus Krogh Ankarstrand, president of Yara Clean Ammonia, commented, “Being the world’s largest ammonia distributor, Yara Clean Ammonia will be a significant contributor on the path toward zero emissions in the maritime sector. We aim to significantly strengthen our leading global position, unlock the green and blue value chains, and drive the development of clean ammonia globally. Building on Yara’s leading experience within global ammonia production, logistics and trade, Yara Clean Ammonia works toward capturing growth opportunities in net-zero fuel for shipping.”

Read more of the latest marine renewables updates from the electric and hybrid marine technology, here.