New bunkering partnerships to unlock ammonia fuel market

Yara, Bunker Holding

The pair will explore opportunities to accelerate the supply of ammonia bunker fuel to the shipping industry. The initial focus of the partnership will be to identify key trade routes and port locations where ammonia bunker fuel could be adopted by “first movers”. The partnership combines one of the world’s leading bunker trading companies with one of the world’s biggest ammonia producers.

Our global assets and logistical footprint coupled with Bunker Holdings position as the world’s largest bunker player will bring safety, reliability, and security of clean ammonia supply as shipping fuel and will add more resilience and robustness to developing this value chain in the future.

Murali Srinivasan, SVP Commercial of Yara Clean Ammonia in his organisation’s official press release, 23 June 2023

We are excited to work with Yara Clean Ammonia on developing a credible commercial offering for the supply of low- and zero-carbon ammonia to our global customer base…it is vital for us to collaborate with partners who can offer the market confidence around the scale and security of supply of low-carbon fuels.

Valerie Ahrens, Senior Director, New Fuels and Carbon Markets of Bunker Holding in Yara’s official press release, 23 June 2023

Last month, Yara & Cepsa announced a partnership to kickstart ammonia transport between Spain and northern Europe, with Cepsa to be provided access to Yara’s ammonia logistical footprint along the route. This week’s announcement is similar, with Yara aiming to leverage its existing logistical footprint to enable bunker fuel supply to key operating locations for Bunker Holding.

Equinor, Azane Fuel Solutions

The pair have agreed to establish & execute the “AFNO 2030 – Ammonia fuel for the Norwegian offshore sector 2025-2030” project. Included in the project are three workstreams:

• develop an estimated ammonia fuel demand timeline,
• develop a fuel supply value chain development plan, and
• perform site-specific location planning for bunkering.

With logistical optimisation, operational planning, and safety considerations to be addressed throughout. Ultimately, the partners aim to demonstrate how Norway’s offshore sector can be decarbonised by 2030, via the use of clean ammonia fuel. The new project with Equinor builds on work already in progress: the Ammonia fuel bunkering network, a consortium including Yara that plans to establish a network of ammonia bunker fuel barges across Scandinavia.

We look forward to working with Equinor to showcase how clean ammonia can be utilized to decarbonize the Norwegian offshore sector. Equinor can play an important role in the maritime green shift – as a first mover to utilize the fuel, technologies and bunkering infrastructure required for the industry to make the leap.

Håkon Skjerstad, CEO at Azane Fuel Solutions in his organisation’s official press release, 27 June 2023