Yara and NYK: time-charter agreement for ammonia-fueled medium gas carrier
By on March 11, 2025
Click to learn more. The NYK ammonia-fueled medium gas carrier will offer an environmentally friendly alternative to ammonia transportation. Source: Yara Clean Ammonia.
Yara Clean Ammonia has signed a time-charter contract with NYK Group which will see NYK deliver an ammonia-fueled medium gas carrier (AFMGC) to Yara Clean Ammonia in November 2026. The 40,000 m3 capacity vessel will be about 180m long, 32m wide and have a molded depth of 18.45m. The agreement is a result of a joint study by the two companies, which has been underway since 2021, of an ammonia-fueled ammonia gas carrier. According to the announcement, this is the “world’s first time-charter contract from an AFMGC”.
The two parties expect the use of the AFMGC to sizeably reduce GHG emission from marine transportation and contribute towards environment-compatible ammonia transportation, an important factor in the context of ammonia’s potential use as a low-carbon fuel and renewable energy vector.
Our successful collaboration with NYK enables us not only to comply with future regulations related to CO2 emissions from sea-going vessels but also helps us to ensure that our customers can receive carbon-intensity compliant clean ammonia throughout our supply chain from well to wake.
Murali Srinivasan, SVP Commercial, Yara Clean Ammonia, in his organisation’s official press release, 10 February 2025
I am pleased to have concluded this charterparty which will give us great flexibility to manage carbon emissions and product carbon intensity. I look forward to a successful cooperation in operating this new technology to its best efficiency.
Csaba Laszlo, VP, Ammonia Trade & Shipping, Yara Clean Ammonia, in his organisation’s official press release, 10 February 2025
In November 2023, we released the ‘NYK Group Decarbonization Story’ declaring a target of achieving net-zero GHG emissions by 2050. We have been developing an ammonia-fueled vessel because we believe that using alternative fuels, especially ammonia, is essential to reaching the net-zero goal. We are delighted to have concluded this time-charter contract with Yara Clean Ammonia, the world’s largest ammonia player, which has highly evaluated the AFMGC we develop with our partner companies as a next-gen fueled vessel. We will continue to work with Yara on building an ammonia supply chain from various aspects, not only in the maritime transportation of ammonia.
Hironobu Watanabe, Managing Executive Officer NYK, in Yara’s official press release, 10 February 2025