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Trafigura inks newbuild contract for ammonia-powered gas carriers

Photo: Trafigura 2024Trafigura-Andrea-Olivi.080648.jpg
Singapore-based commodity trading giant, Trafigura, has ordered four medium gas carriers (MGC) that will be powered by ammonia dual-fuel engines, at Hyundai Mipo Dockyard in Ulsan.

Trafigura, which has regional hubs in Geneva, Houston, Montevideo and Mumbai, has not specified the size of the vessels but MGCs lie in the range 25-50,000 cu metres. The ships are due for delivery in 2027.

The company, which operates both owned and chartered tonnage and currently has about 400 ships within its operation, said that the MGCs will support its commitment to reduce the carbon intensity of its own shipping fleet by 25% by 2030. 

Andrea Olivi, Head of Wet Freight at the commodity group, commented: “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, which has insisted for some time that a global price on carbon is essential as a stimulus to reducing greenhouse gas emissions, has tested a series of alternative fuels, including LNG, methanol, LPG and biofuels, on both its owned and chartered vessels. It has also co-sponsored the development of an ammonia-fuelled two-stroke engine by MAN Energy Solutions and has invested in carbon capture technology.

The commodity trader is a prominent player in shipping’s decarbonisation endeavours. It is a member of the Global Maritime Forum’s Getting to Zero coalition, a founding member of the First Movers Coalition, and a founding member of the Sea Cargo Charter.