Bunker Holding & NeoGreen: bringing marine ammonia fuel to market
By on October 29, 2023
Bunker Holding and NeoGreen Hydrogen will collaborate on operations, distribution logistics & marketing of ammonia fuel from NeoGreen’s under-development project portfolio. Amongst a global portfolio including hydrogen & methanol production, NeoGreen plans to develop ammonia production in Paraguay, Namibia and near the Suez Canal. Both the Namibian and Egyptian projects will be based on 1 GW-plus of electrolysis capacity. In Paraguay, NeoGreen is exploring the use of excess hydroelectricity from the Itaipu Dam to produce electrolytic hydrogen feedstock for ammonia production (the same approach being taken by ATOME).
In the announcement, the pair note that impending regulatory changes from the EU and IMO are building pressure on the global shipping industry to prepare for an alternatively-fueled future, with ammonia and methanol the likely candidates.
Legislation is driving the necessity for our clients to have reliable access to alternative fuels,
Valerie Ahrens, Senior Director of New Fuels and Carbon Markets at Bunker Holding in her organisation’s official press release, 25 Oct 2023
while there remains considerable uncertainty about the sources of supply. We are very pleased
to apply our extensive sector expertise to assist with the unlocking of value from NeoGreen’s
global pipeline of projects by facilitating the operations and logistics necessary to bring their
products to market.
NeoGreen’s strategy is to develop projects in geographies which offer access to the cheapest renewable electricity resources, as this has a dominant influence on the levelised cost of green hydrogen-based products. Our collaboration with Bunker Holding will ensure we benefit from their vast experience in operations, logistics, storage, and delivery of these maritime fuels to consumers. Bunker Holding will also be able to support NeoGreen in access to offtakers through its very significant existing client base across the global shipping industry.
Rory Harding, Head of Corporate Development at NeoGreen in Bunker Holding’s official press release, 25 Oct 2023
In June, Bunker Holding signed an MoU with Yara Clean Ammonia to accelerate the supply of ammonia bunker fuel to first movers in the shipping industry.