Yara Clean Ammonia Switzerland SA, a subsidiary of Yara International ASA, the world’s largest ammonia distributor, has signed a groundbreaking time-charter contract with global shipping giant Nippon Yusen Kabushiki Kaisha (NYK) for an ammonia-fueled medium gas carrier (AFMGC). This vessel, set for delivery in November 2026, marks the world’s first time-charter agreement for an ammonia-powered gas carrier, a significant milestone in decarbonizing maritime transport.
A Strategic Collaboration for Low-Carbon Shipping
Since 2021, Yara Clean Ammonia and NYK have been jointly exploring the viability of an ammonia-fueled gas carrier. This newly finalized time-charter agreement is a key step in advancing the use of ammonia as a low-carbon marine fuel and in scaling up a sustainable ammonia supply chain.
The AFMGC, the preferred vessel type for international ammonia transportation, will play a vital role in reducing greenhouse gas (GHG) emissions from shipping. As demand for ammonia grows across multiple industries—including power generation and marine fuel—this vessel will provide an environmentally friendly solution for ammonia logistics.
Murali Srinivasan, Senior Vice President Commercial, Yara Clean Ammonia “Our successful collaboration with NYK enables us not only to comply with future CO₂ regulations for maritime transport but also ensures that our customers receive clean ammonia with a compliant carbon intensity throughout our supply chain.”
Csaba Laszlo, Vice President Ammonia Trade & Shipping, Yara Clean Ammonia “This time-charter agreement provides us with flexibility in managing carbon emissions and the product’s carbon intensity. We look forward to optimizing the efficiency of this new technology in partnership with NYK.”
Hironobu Watanabe, Managing Executive Officer, NYK “In November 2023, NYK announced its ‘Decarbonization Story’ with a goal of net-zero GHG emissions by 2050. Ammonia as a fuel is critical to this strategy, and we are pleased to partner with Yara Clean Ammonia on this pioneering AFMGC project. This agreement strengthens our joint efforts in building a sustainable ammonia supply chain for maritime transport.”
Ammonia Fueled Gas Carrier Specifications
- Vessel Type: 40,000m³ Ammonia-Fueled Medium Gas Carrier
- Delivery: November 2026
- Length Overall: 180.00 meters
- Breadth: 32.00 meters
- Molded Depth: 18.45 meters
- Flag: Japan
Decarbonization and the Role of Ammonia in Shipping
As global shipping seeks alternative fuels to meet ambitious emission reduction targets, ammonia has emerged as a promising solution due to its carbon-free combustion. The development and deployment of ammonia-fueled vessels align with the International Maritime Organization’s (IMO) 2050 decarbonization goals.
Yara Clean Ammonia, with its extensive ammonia logistics network, is uniquely positioned to facilitate the transition to clean ammonia as a marine fuel. The partnership with NYK demonstrates a clear industry commitment to advancing ammonia-fueled vessel technology and infrastructure.
Industry Impact and Future Prospects
This landmark agreement not only sets a precedent for ammonia-powered maritime transport but also signals a shift towards a low-emission shipping future. The success of this AFMGC project is expected to accelerate the adoption of ammonia as a fuel and support the broader maritime industry’s transition to cleaner energy sources.
About Yara Clean Ammonia
Yara Clean Ammonia, a subsidiary of Yara International ASA, is the world’s largest ammonia distributor, dedicated to unlocking clean ammonia value chains for energy, shipping, and industrial applications. The company operates the largest global ammonia network, with 15 ships and access to 18 ammonia terminals worldwide.
This collaboration between Yara Clean Ammonia and NYK marks a significant step forward in sustainable shipping, reinforcing the industry’s commitment to a cleaner and more efficient maritime future.
About NYK Line
Established in 1885 in Japan, NYK Line, formally known as Nippon Yusen Kabushiki Kaisha, has emerged as a global leader in the maritime industry over its 135-year history. Operating a diverse fleet, including container ships, bulk carriers, and tankers, NYK serves over 800 locations worldwide, offering a comprehensive suite of shipping services.
NYK Line has earned recognition for its commitment to innovation, sustainability, and safety, navigating the complexities of global logistics with diligence and foresight. This ongoing dedication underscores NYK’s pivotal role in shaping the future of ocean transport and reaffirms its status as a cornerstone of the maritime landscape.
Source NYK Group