Navigator Joins with Amon to Build Two Ammonia-Fueled Gas

The ammonia-fueled shipping sector is making significant strides as Navigator Holdings and Amon Maritime announce a new joint venture, Navigator Amon Shipping. This partnership includes an order for two ammonia-fueled liquefied ammonia carriers, coinciding with WinGD’s recent milestone of installing the first ammonia-fueled marine engine in a newbuild. This initiative aligns with Amon Maritime’s commitment to spearheading the green transition in the shipping industry.

Joint Venture and Vessel Details

Navigator Holdings will hold an 80 percent stake in the newly formed Navigator Amon Shipping, while Amon Maritime will own the remaining 20 percent. The joint venture plans to place the ammonia carriers under long-term charters with reputable industry leaders, anticipating five-year agreements. Navigator already operates the world’s largest fleet of handysize liquefied gas carriers, which positions it well for this new venture.

The construction of the vessels has been contracted to Nantong CIMC Sinopacific Offshore & Engineering in China, with each vessel priced at approximately $84 million. Scheduled for delivery in June and October 2028, these vessels will primarily transport ammonia but will also have the capability to carry liquefied petroleum gas, boasting a capacity of 51,530 cubic meters. The project has received a NOK 90 million ($9 million) investment grant from Norway’s Enova, further supporting its development.

Navigator’s CEO, Mads Peter Zacho, emphasised the strategic importance of expanding their fleet with these modern ammonia carriers. He stated that the vessels are designed to meet both current and future environmental regulations, thus providing significant value to customers and shareholders alike. This move is seen as a crucial step in addressing the rising demand for sustainable fuel sources in a net-zero economy.

Expanding Ammonia’s Role in Shipping

Amon Maritime has been proactive in exploring the potential of ammonia as a fuel source. In June, the company highlighted the advantages of ammonia transportation, noting that it is primarily moved using Medium Gas Carriers (MGC). Amon believes that converting these vessels to ammonia-fueled propulsion will be more cost-effective compared to traditional ships, making it an attractive option for the industry.

These developments mark a significant step toward decarbonizing deep-sea shipping, reinforcing the industry’s commitment to sustainable practices and innovative fuel solutions.