Yara Clean Ammonia (YCA) and Bunker Holding Group have recently signed a Memorandum of Understanding (MoU) with the aim of accelerating the development of clean ammonia as a fuel for the shipping industry.
This collaboration seeks to explore opportunities for supplying clean ammonia as a marine fuel to pioneering companies within the shipping industry, focusing on key trade routes and bunkering ports across various geographical regions.
Clean ammonia is emerging as a sustainable solution for decarbonizing maritime transport. Shipping companies are projected to expand their use of this environmentally friendly fuel by 2026, with the potential to achieve up to 100% reduction in CO2 emissions on a full life cycle basis. By utilizing ammonia as a shipping fuel, the industry can significantly contribute to the achievement of several Sustainable Development Goals outlined in the 2030 Agenda, including affordable and clean energy, decent work and economic growth, responsible consumption and production, and climate action.
The collaboration between Yara Clean Ammonia and Bunker Holding Group aims to establish a robust market for clean ammonia as a shipping fuel. Yara Clean Ammonia, as a global supplier of clean ammonia, brings its expertise and extensive logistical capabilities to ensure the safety, reliability, and security of the supply chain for shipping fuel. Meanwhile, Bunker Holding Group recognized as the world’s largest bunker supplier in terms of end users, will leverage its position to facilitate the commercial offering of low- and zero-carbon ammonia to its global customer base.
Murali Srinivasan, the Senior Vice President of Commercial at Yara Clean Ammonia, expressed enthusiasm for the collaboration, emphasizing the commitment to support the shipping industry’s net-zero carbon energy transition. The partnership between the two companies is expected to enhance the resilience and robustness of the clean ammonia supply chain, contributing to a more sustainable future for the maritime sector.
Valerie Ahrens, the Senior Director of New Fuels and Carbon Markets at Bunker Holding, echoed the sentiment, highlighting the importance of collaborating with partners who can provide market confidence in terms of scale and security of low-carbon fuel supply. Bunker Holding aims to play a leading role in facilitating the decarbonization of the maritime sector and views the development of a credible commercial offering for clean ammonia as a crucial step toward achieving this goal.
The MoU signed by Yara Clean Ammonia and Bunker Holding Group signifies a significant milestone in accelerating the adoption of clean ammonia as a shipping fuel. With their combined expertise and commitment, these two industry leaders are poised to drive the development and widespread use of this sustainable fuel, leading to a substantial reduction in greenhouse gas emissions and a more environmentally friendly shipping industry.