Two separate deals highlight an increased focus in Scandinavia on using ammonia as a ship fuel.
Norwegian start-up Azane Fuel Solutions has announced a joint bunkering study with giant domestic energy company Equinor.
The project will match the estimated ammonia fuel demand between 2025 and 2030 to an optimised fuel supply chain from production to consumption, focusing on the establishment of bunkering terminals at strategic locations.
The two sides have set up AFNO 2030 — Ammonia fuel for the Norwegian offshore sector 2025-2030 project.
The study will cover logistics, operational planning and safety aspects.
“Clean ammonia holds great potential as a fuel to decarbonise the maritime industry, as it can be burned in an engine or a fuel cell but does not contain carbon — hence no CO2 is emitted,” Azane said.
The company said key challenges include answering safety questions related to toxicity and corrosivity.
The companies will develop an estimated ammonia fuel demand timeline; a fuel supply value chain development plan; and perform site-specific location planning for bunkering.
“Equinor can play an important role in the maritime green shift — as a first mover to utilise the fuel, technologies and bunkering infrastructure required for the industry to make the leap,” said Hakon Skjerstad, chief executive of Azane, which is a joint venture between Mosvolds Rederi-backed Amon Maritime and technology group Econnect Energy.
First fuelling in 2025?
The company is also working with Norway’s Yara Clean Ammonia (YCA) to build the world’s first ammonia bunkering network, which is expected to be ready for operation in 2025.
In April, YCA ordered up to 15 ammonia bunkering terminals to cover the Scandinavian market in a multi-year contract with Azane.
YCA, the clean energy unit of ammonia producer and gas carrier owner Yara International, has revealed a cooperation deal with Danish ship fuel giant Bunker Holding, part of the USTC shipping group.
The collaboration will explore opportunities to supply clean ammonia as a marine fuel to first-movers along key trade routes and at bunkering ports.
Murali Srinivasan, senior vice president of commercial at YCA, said: “Our global assets and logistical footprint, coupled with Bunker Holding’s 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.”