Yara and NYK: time-charter agreement for ammonia-fueled medium gas carrier
Following a time-charter agreement between the two companies, NYK will deliver an ammonia-fueled medium gas carrier to Yara Clean Ammonia in November 2026.
Following a time-charter agreement between the two companies, NYK will deliver an ammonia-fueled medium gas carrier to Yara Clean Ammonia in November 2026.
In 2025, the pieces are rapidly assembling to enable and accelerate imports of ammonia energy to Japan. This year, government agency METI is due to announce two lots of key funding, including contracts for difference subsidies and development of import infrastructure. Power generation technologies will be commercialised within the next few years, and more maritime players are joining the push to deploy ammonia fuel in Japanese ships.
H2Global’s new €3 billion auction for long-term supplies of renewable hydrogen and its derivatives has received EU approval, including €1.2 billion for regional funding in Canada and Australia. H2Global also progressed partnerships with the Tokyo Metropolitan Government, and the Solar Energy Corporation of India.
In Japan, the Ministry of Land, Infrastructure, Transport and Tourism, in cooperation with the Ministry of the Environment will invest $212 million in the domestic manufacture of ammonia engines, fuel tanks and components. In Korea, the national Export-Import Bank has committed to supporting ammonia-fueled newbuilds.
Japan Engine Corporation (J-ENG) announced that it has completed test operations on its low-speed, 2-stroke engine, with installation and subsequent trial operations due to begin in April 2025. Installation will be onboard one of the first ammonia-fueled vessels to hit the water: the NYK-led midsized gas carrier project.
During the recent 2024 Ammonia Energy Conference, we explored all the latest developments in ammonia-powered maritime propulsion. Engine makers reported strong progress ahead of deployment in 2026, the same year that large-scale vessels will hit the water. The panel explored early operations for the ammonia-powered A-Tug in Japan, as well as ancillary technology systems required for maritime ammonia engines, catalyst after-treatment systems for emission mitigation, and the potential for fuel additives to boost ammonia engine performance.
Idemitsu and Mitsubishi Corporation are developing ammonia handling terminals in Japan to meet the production capacity of overseas projects, such as the million-ton-per-year Baytown project led by Exxon.
Ammonia energy giants JERA and Lotte will develop a low-carbon ammonia value chain between Japan and Korea, working alongside the governments of both countries.
ADNOC will acquire a 35% equity stake in the Baytown mega-project, which is targeting the production of 900,000 tons of CCS-based hydrogen per year. Mitsubishi and project lead Exxon will continue negotiations towards a formal offtake and equity agreement.