World’s First Ammonia Bunkering Terminal Receives Approval in Norway

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Yara Cean Ammonia Azane Fjord Bunkering

The Norwegian Directorate for Civil Protection has granted approval for the construction of a planned ammonia bunkering facility at Fjord Base in Florø, Norway. This milestone signals a significant step forward in promoting ammonia as a safe and low-emission alternative to traditional shipping fuels.

Ammonia has long been recognized as a promising low-emission fuel for shipping. However, the absence of infrastructure for transporting it from production plants to vessels has been a crucial gap in its adoption. Now, Yara Clean Ammonia, Azane, and Fjord Base have demonstrated how the planned ammonia bunkering terminal can adhere to the stringent safety requirements set by the Norwegian Directorate for Civil Protection.

The terminal, which comprises a floating stationary barge with a capacity of 1000 cubic meters or 650 tons of low-emission ammonia, has been granted permission for up to 416 operations annually. These operations are expected to include bunkering for offshore supply vessels frequenting Fjord Base in Florø.

The planned terminal is part of Yara Clean Ammonia and Azane’s efforts to make low-emission ammonia a common fuel for shipping. With ammonia’s potential to fully decarbonize the maritime sector, the companies plan to roll out a network of terminals in Scandinavia. This milestone is important to meet the growing demand for ammonia as shipping fuel, as well as incentives needed to enable ship operators and owners to switch from high-emitting, but cheaper fuels, to the low-emission alternative of ammonia. Demand seems to gain momentum in Norway as ENOVA, which manages the Norwegian Climate and Energy fund on behalf of the government, is planning ammonia grant tenders for both ammonia powered ships and ammonia infrastructure in 2024. There are multiple newbuilding projects in the pipeline, and ongoing ammonia-powered Platform Supply Vessels (PSV) tender processes.

Yara Clean Ammonia, Azane and Fjord Base will now commence work with their project partners to obtain a permit with the local municipality before a final investment decision.

Magnus Ankarstrand, President Yara Clean Ammonia, stated: “We are grateful for the permit awarded from the Norwegian Directorate for Civil Protection. This acknowledges how ammonia can be used safely and efficiently as a shipping fuel at the site in Kinn. The ammonia terminal will enable the decarbonization of the maritime sector and showcase ammonia’s assets as a zero-emission shipping fuel. We look forward to working together with our partners and the local community in Kinn to complete the project and provide the shipping fuel for the future to the Norwegian offshore supply segment.”

Steinar Kostøl, VP Projects& Products, Azane, commented: “This marks a milestone for ammonia as a fuel. Now we finally know with certainty the safety zones we will have to operate under when bunkering ammonia. The required safety zones are very encouraging and demonstrate how it will be possible to bunker ammonia in the biggest and busiest ports around the world.”

Stig Førde, CEO, Fjord Base, stated: “The Fjord Base community welcomes with great enthusiasm the declaration of conformity issued by DSB. It underscores our commitment to providing our customers with innovative solutions aimed at minimizing their carbon footprint. The development of an ammonia bunkering terminal marks a significant step forward in this endeavor, bolstering our competitive edge at Fjord Base and showcasing our dedication to sustainability.”

About Yara Clean Ammonia

Yara Clean Ammonia, a subsidiary of Yara International, is dedicated to fostering sustainable solutions for feeding the world while safeguarding the planet. Leveraging Yara’s extensive expertise in ammonia production and distribution, Yara Clean Ammonia focuses on pioneering the use of clean ammonia across various sectors, including shipping, power generation, food production, and industrial applications. With a global network comprising 15 ships and access to 18 terminals, Yara Clean Ammonia is at the forefront of enabling the hydrogen economy and driving the adoption of low-emission fuels worldwide.

About Azane

Azane Fuel Solutions is revolutionizing the maritime industry with its pioneering technology for ammonia bunkering terminals. Headquartered in Oslo and Sandefjord, Norway, Azane is backed by prominent stakeholders in the maritime and ammonia sectors, including Amon Maritime, ECOnnect Energy, Navigator Gas, and Yara Growth Ventures. Azane is spearheading the development of the world’s first ammonia bunkering network in collaboration with Yara Clean Ammonia, aiming to provide fast, safe, and reliable bunkering solutions to ships. With a commitment to decarbonizing the shipping industry, Azane is driving innovation in ammonia cargo handling and fuel systems, paving the way for a sustainable future.

About Fjord Base Group

Fjord Base Group is a leading Norwegian supply base catering to major offshore energy and renewable companies operating along the Norwegian Continental Shelf. Located in Florø on Norway’s western coast, Fjord Base handles a significant volume of maritime traffic annually, providing critical infrastructure and logistics services to multinational energy companies such as Equinor and Neptune Energy. With strategic focuses on oil and gas, offshore wind, and sustainable fuels, Fjord Base is poised to play a pivotal role in Norway’s transition towards renewable energy. Supported by its majority owner, Ancala, a prominent European infrastructure investor, Fjord Base Group is well-positioned to drive innovation and sustainability in the maritime sector.

Source Yara International