Yara Clean Ammonia and Azane to build low-emission ammonia bunkering terminal
The Norwegian Directorate for Civil Protection (DSB) has approved the construction of the planned ammonia bunkering facility at Fjord Base in Florø, Norway. The permit is expected to enable ammonia as a safe and low-emission alternative to traditional shipping fuels.
Ammonia bunkering terminal
The planned terminal consists of a floating stationary barge with a capacity of 1,000m3, or 650 tons, of low-emission ammonia. The permit enables up to 416 operations annually, many of these expected to be bunkering operations for the offshore supply vessels that regularly call at Fjord Base.
To receive the approval, Yara Clean Ammonia, Azane and Fjord Base demonstrated how the planned ammonia bunkering terminal would meet the strict safety requirements of the DSB.
The planned terminal is part of Yara Clean Ammonia and Azane’s efforts to make low-emission ammonia a common fuel for shipping. With ammonia’s potential to fully decarbonize the maritime sector, the companies plan to roll out a network of terminals in Scandinavia. This is an important milestone to meet the growing demand for ammonia as a shipping fuel, as well as incentives needed to enable shipowners and operators to switch from high-emitting but cheaper fuels to the low-emission alternative of ammonia. Demand seems to be gaining momentum in Norway as Enova, which manages the Norwegian Climate and Energy fund on behalf of the government, is planning ammonia grant tenders for both ammonia-powered ships and ammonia infrastructure in 2024. There are reportedly multiple new-build projects in the pipeline, as well as ongoing tender processes for ammonia-powered platform supply vessels (PSV).
Project partners
Yara Clean Ammonia, Azane and Fjord Base will now commence work with their project partners to obtain a permit with the local municipality before a final investment decision.
Magnus Ankarstrand, president of Yara Clean Ammonia, stated, “We are grateful for the permit awarded from the Norwegian Directorate for Civil Protection. This acknowledges how ammonia can be used safely and efficiently as a shipping fuel at the site in Kinn. The ammonia terminal will enable the decarbonization of the maritime sector and showcase ammonia’s assets as a zero-emission shipping fuel. We look forward to working together with our partners and the local community in Kinn to complete the project and provide the shipping fuel of the future to the Norwegian offshore supply segment.”
Steinar Kostøl, vice president of projects and products at Azane, continued, “This marks a milestone for ammonia as a fuel. Now we finally know with certainty the safety zones we will have to operate under when bunkering ammonia. The required safety zones are very encouraging and demonstrate how it will be possible to bunker ammonia in the biggest and busiest ports around the world.”
Stig Førde, CEO of Fjord Base, commented, “The Fjord Base community welcomes with great enthusiasm the declaration of conformity issued by DSB. It underscores our commitment to providing our customers with innovative solutions aimed at minimizing their carbon footprint. The development of an ammonia bunkering terminal marks a significant step forward in this endeavor, bolstering our competitive edge at Fjord Base and showcasing our dedication to sustainability.”
In related news, Ammonia distributor Yara Clean Ammonia and ocean transportation provider Höegh Autoliners recently agreed on a future supply deal for clean ammonia. Click here to read the full story.
