Trading giant Trafigura has made good on its pledge to operate ammonia-fuelled LPG carriers with a new order in South Korea.
The Swiss charterer and shipowner has signed up for four mid-sized vessels at HD Hyundai Mipo Dockyard for delivery from 2027.
The group said the vessels will be capable of using low-carbon ammonia as fuel.
The quartet will carry LPG and ammonia as cargo.
The shipbuilder later said the vessels were costing KRW 389.9b ($286m) combined.
Dual-fuel engines will support Trafigura’s commitment to reduce the carbon intensity of its own shipping fleet by 25% by 2030, it added.
The trader has previously said it will have at least six ammonia-fuelled gas ships operational by 2030.
The group had indicated six ammonia carriers could be converted to run on zero-emission fuels by the same date.
“We are excited to embark together with HD Hyundai Mipo on this ambitious project which supports our commitments to decarbonising shipping and will help us to develop the global low-carbon ammonia bunkering infrastructure needed for zero-carbon shipping to become a reality,” Trafigura head of wet freight Andrea Olivi said.
The group ordered its first VLCCs in February, contracting two 319,000-dwt tankers at Jiangsu New Hantong Ship Heavy Industry in China.
The commodities player has 400 ships under management.
Full range of green fuels tested
UK shipbroker Clarksons lists an owned fleet of 18 ships, including a VLGC and four mid-sized LPG carriers of about 40,000 cbm, plus suezmaxes, LR tankers and asphalt and bitumen carriers.
Trafigura has said it owns 30 vessels.
The company explained it is one of the few operators to have tested a full range of alternative shipping fuels including LNG, methanol, LPG and biofuels on its owned and chartered vessels.
It has also co-sponsored the development of a two-stroke engine by MAN Energy Solutions that can run on green ammonia and is investing in on board carbon capture technology.
“Investments are also being made in wider efficiency measures such as silicone hull coating, wake equalising ducts, ultrasonic propeller antifouling technology, and continuous underwater hull cleaning and propeller polishing,” Trafigura said.
