Yara Clean Ammonia AS and North Sea Container Line AS are establishing a joint venture. NCL Oslofjord AS that will operate the ammonia-powered ship Yara Eyde between Brevik and Oslo in Norway and Hamburg and Bremerhaven in Germany, from 2026 when the vessel is scheduled for delivery.
"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 a negative impact on the crew or the environment," said Magnus Krogh Ankarstrand, head of Yara Clean Ammonia.
Yara Eyde will be the first ammonia powered container ship to enter into service operating entirely on green, fossil free, ammonia or ammonia that is produced from natural gas with 95% of any carbon emissions captured and permanently stored, according to a Yara statement.
“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,” said a company statement.
Svein Tore Holsether, CEO of Yara International, said that the Brevik to Germany link will cut as much as 11,000 tonnes of carbon from scope 3 emissions for shippers, extending the zero emission value chain to continental Europe, as an increasing number of shippers look to cut emissions from their supply chains.
"We see there is increasing demand from product owners to reduce emissions. The ship [Yara Eyde] offers competitive and emission-free logistics to all cargo owners in the Oslofjord and the Greenland region," said NCL CEO Bente Hetland.
As an already established company in the production of ammonia Yara can offer the project economies of scale for the production of fuel, and it also operates terminals putting the company in what it says is a unique position to increase its participation in shipping and to develop new markets.
"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," claimed Ankarstrand.
Fuel and a bunkering barge will be supplied by Enova Energy and Innovation Norway, with Enova also offering NOK40 million ($3.6 million) in funding for the project.