Yara takes on Navigator Amon ammonia carrier newbuilds

Yara Clean Ammonia (YCA) has announced a significant long-term partnership with Navigator Amon Shipping, focusing on two new ammonia-fueled medium gas carriers. These state-of-the-art vessels, designed to operate on renewable and low-emission fuels, will enhance YCA’s supply chain capabilities for the burgeoning low-emission ammonia market. The deal is expected to lower freight costs and improve operational flexibility while adhering to stricter environmental regulations.

Innovative Vessels for a Sustainable Future

The two newbuilds, each with a capacity of 51,000 cubic meters, will feature dual-fuel engines and ice-class notation, ensuring they can operate year-round in Northern Europe. This design allows for efficient transportation of ammonia and liquefied petroleum gas (LPG), catering to the growing demand for cleaner energy solutions. The vessels are being constructed at Nantong CIMC Sinopacific Offshore & Engineering, with an estimated cost of $84 million each. Delivery is scheduled for June and October 2028.

YCA’s CEO, Hans Olav Raen, emphasized the importance of building scalable and reliable supply chains to facilitate the hydrogen economy. He stated that this contract represents a logistical and cost-effective method for transporting large volumes of ammonia to Europe. By enhancing its fleet, YCA aims to strengthen its position in the low-emission ammonia trade, which is becoming increasingly vital as environmental regulations tighten globally.

The project has also received approximately $9 million in funding support from Norway’s Enova, highlighting the Norwegian government’s commitment to promoting sustainable energy initiatives. In this joint venture, Navigator Amon Shipping will hold an 80% stake, while Amon Maritime will retain the remaining share, pending final agreements. The charter for these vessels is set for five years, marking a crucial step in establishing core infrastructure for clean energy.

Höegh Autoliners and Yara Clean Ammonia partner to cut maritime emissions

Strategic Growth in Clean Energy Shipping

YCA currently operates a fleet of 15 ammonia carriers and has access to 18 ammonia terminals worldwide through its parent company, Yara. This extensive network positions YCA to effectively meet the increasing demand for low-emission ammonia, which is seen as a key player in the transition to sustainable energy sources. Navigator’s Chief Commercial Officer, Oeyvind Lindeman, noted that this collaboration is essential for accelerating the adoption of clean energy and ensuring compliance with evolving regulatory standards.

As the global energy landscape shifts towards sustainability, partnerships like this one between YCA and Navigator Amon Shipping are critical. They not only enhance operational capabilities but also contribute to the broader goal of reducing carbon emissions and fostering a cleaner environment. The successful implementation of these new vessels will play a pivotal role in shaping the future of ammonia transportation and the clean energy sector.