Japan Advances Ammonia Value Chain with First Ammonia-Fueled Medium Gas Carrier Charter

Efforts to establish the first ammonia value chain have advanced with Japan’s NYK Line and Yara Clean Ammonia signing the first charter for an ammonia-fueled medium gas carrier. NYK commissioned the construction of the vessel in 2023 as part of Japan’s Green Innovation Project Fund. This project, initiated in 2021 by the New Energy and Industrial Technology Development Organization (NEDO), aims to overcome obstacles in using ammonia as maritime fuel and contribute to shipping decarbonization.

The project focuses on developing an ammonia-fueled combustion engine, addressing challenges such as ammonia’s low energy density and flammability, as well as the need to suppress N2O emissions from combustion. Japan Engine Corporation and IHI Power System are working on the engine and fuel supply system, targeting significant reductions in greenhouse gas emissions. The vessel, a medium-sized gas carrier with optimized hull forms, is designed for efficient ammonia transport.

Scheduled for completion in November 2026, the project received approval from ClassNK in September 2022. Japan Engine Corporation will produce the two-stroke engine for the vessel, which will be built at the Japan Marine United Corporation yard. Yara Clean Ammonia anticipates the charter will enhance its ability to manage carbon emissions and product carbon intensity. The vessel’s entry into service will mark a significant milestone in the advancement of ammonia-fueled ships.

In 2024, the first-ever ammonia bunkering occurred, with NYK introducing the first ammonia-fueled tugboat. Engine manufacturers like MAN Energy Solutions and WinGD are making progress in testing their ammonia-fueled engines, with WinGD aiming to deliver its first engine by mid-year. DNV projects the delivery of larger ammonia-fueled vessels in 2025, with rapid expansion expected between 2026 and 2028 in the segment.

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