Sunday, December 22, 2024
Power & PropulsionAmmoniaYara Clean Ammonia, NorthSea Container Line and Yara join forces for the...

Yara Clean Ammonia, NorthSea Container Line and Yara join forces for the world’s first ammonia-powered container ship

Yara Clean Ammonia, NorthSea Container Line and Yara International join forces to realize the world’s first container ship that will use pure ammonia as fuel. Yara Eyde will operate between Norway and Germany and be the first emission-free sea route to the continent.

“The world is in the middle of a climate crisis and all good forces must now come together to quickly cut emissions. We are happy to be able to collaborate across sectors and show that decisive emission cuts are possible. The green journey started with the Yara Birkeland, the world’s first self-driving electric container ship, and now we continue it with the Yara Eyde, which will be the world’s first container ship on pure ammonia,” says Svein Tore Holsether, CEO of Yara International. 

First green shipping route to Europe  

Yara Eyde is optimized for the trade corridor between Norway and Europe and will operate between Oslo, Brevik, Hamburg and Bremerhaven. From 2026, Norwegian companies can export their products on a green keel, and trade goods can be imported emission-free into Norway. 

“We see there is increasing demand from product owners to reduce emissions. The ship offers competitive and emission-free logistics to all cargo owners in the Oslofjord and the Greenland region,” says Bente Hetland of North Sea Container Line. 

Illustration of first green shipping route between Norway and Europe

Strategy for Yara International

Through its established position as the world’s largest ammonia company with economies of scale in production, terminals and ammonia ships, Yara has a unique opportunity to scale up these business areas by participating in developing new market segments. The most important of the new segments will be related to shipping.  

“Yara has chosen to participate in this project to show that this segment can create additional growth for ammonia in the short term. Yara will contribute to developing this new market, but we will strategically use our funds to develop the production and logistics segment and not prioritize ownership in ships”, says Magnus Krogh Ankarstrand, head of Yara Clean Ammonia.

Safe bunkering network for pure ammonia

Yara Clean Ammonia will supply Yara Eyde with ammonia that is produced fossil-free or almost carbon-free. Together with Azane Fuel Solutions, a storage and bunkering network is being developed to make pure ammonia available in Norwegian and eventually Scandinavian ports. The bunkering network can also contribute to achieving Norway’s goal of cutting emissions from the offshore sector.  

Enova and Innovation Norway support the first pilots and one of the barges is planned to supply Yara Eyde with low-emission fuel in Brevik. Yara Eyde wants a number of energy saving measures  

“We will have the highest safety and quality standards and draw on Yara’s extensive experience with ammonia. It will ensure that the production, storage and bunkering of pure ammonia will take place without negative impact on the crew or the environment,” says Magnus Krogh Ankarstrand.

Pure ammonia cuts the emissions of ocean-going ships  

Maritime transport causes 2.8% of global CO2 emissions. In 2022, this amounted to 706 million tonnes of CO2 worldwide. Pure ammonia will help to cut emissions from shipping so that goods can be transported across the globe emission-free.  

“Ammonia as a fuel does not pollute. When we produce ammonia from renewable energy or with natural gas where up to 95% of the CO2 emissions are captured and stored permanently, pure ammonia will quickly be a good solution for cutting carbon emissions in the maritime sector. Yara Eyde will demonstrate the maturity of ammonia as a maritime fuel,” says Ankarstrand.

Illustration of Yara Eyde transporting freight

Yara cuts scope 3 emissions by 11,000 tonnes of CO2 per year

The fertilizer from Yara Porsgrunn contributes to food for 48 million people worldwide. Production makes up 3% of exports from the mainland and now it will be transported emission-free from Herøya to the continent.  

“As a direct continuation of the green logistics with Yara Birkeland, the ammonia-powered ship Yara Eyde will extend the zero-emission value chain from Brevik to ports on the continent. With an emission-free sea journey from Brevik to Europe, Yara scope 3 removes emissions by 11,000 tonnes of CO2 per year,” says Svein Tore Holsether. 

“This unique project takes a big step towards supply chains with zero emissions for Yara and demonstrates that ammonia will be able to provide cost-effective and environmentally friendly sea transport.”

Magnus Krogh Ankarstrand, head of Yara Clean Ammonia

“With our industrial DNA from our main shareholder Elkem, NorthSea Container Line is very pleased to see Birkeland and Eyde reunite to facilitate a new industrial revolution. The collaboration with Yara fits perfectly with our ambitious emissions strategy, and we are pleased to see the commitment Yara has shown to reduce emissions,” says Hetland. 

Cooperation required to achieve the climate goals

In order to realize the world’s first ammonia-powered container ship, Yara Clean Ammonia AS and NorthSea Container Line AS are establishing a joint venture. NCL Oslofjord AS will operate the ammonia-powered ship Yara Eyde. Upon establishment, the joint venture aims to become the world’s first line operator to focus exclusively on ammonia-powered container ships. Yara Eyde has been awarded just over NOK 40 million by Enova and the support is decisive in being able to carry out the project. Establishment of the joint venture and ordering of the ship is conditional on the completion of binding agreements and the necessary approvals from the authorities. 

Latest News Articles

Related news