Yara and ClassNK sign agreement on ammonia-fuelled gas carrier

Yara and ClassNK sign agreement on ammonia-fuelled gas carrier

NYK Line, Nihon Shipyard, and ClassNK have signed an MOU with Yara International to jointly study the practical application of an ammonia-fueled ammonia gas carrier (AFAGC) that uses ammonia as its main fuel.

The use of ammonia as a fuel for power generation is expected to significantly reduce CO2 emissions, and development is underway for ammonia co-firing power generation at coal-fired power stations.

This project is part of joint R&D for the practical application of the world’s first AFAGC, which NYK Line, Nihon Shipyard, and ClassNK have been operating since August 2020.

AFAGC contributes to the reduction of CO2 emissions from ships by using ammonia as the main fuel and is expected to achieve zero emissions from ocean-going ships at an early stage by using ammonia as a marine fuel. It will also contribute to the establishment of a stable and economical supply chain for ammonia, for which demand is expected to grow in the future.

With the signing of this MOU with Yara, we will now proceed with studies based on more specific operational requirements, including ship design and development, by studying operational methods and regulatory compliance, and evaluating economic efficiency.

Role of each company

Yara (Charterer) Formulation of operation requirements
Evaluation of economic efficiency as a charterer
NYK Line (Shipowner) Formulation of operation methods
Consideration of compliance with laws and regulations
Evaluation of environmental friendliness of AFAGC introduction
Assessment of the economics of being a shipowner
Nihon Shipyard
(Shipbuilding company)
R&D and design of AFAGC
Estimation of CO2 emission reductions
ClassNK (Classification Society) Technical verification for safety
Formulation of guidelines

Through this joint R&D, the partners will promote the use of ammonia as a marine fuel and aim to provide a stable supply to meet existing demand (including chemical products and raw materials for fertilisers) and new demand (including fuel use in domestic thermal power plants), which is expected to grow in the future. By doing so, the project is expected to make a significant contribution to the decarbonisation of not only the maritime industry but also the energy industry.

The partners also aim to establish international standards as soon as possible by being actively involved in R&D in the field of safety. Through this joint R&D, the partners will promote the use of ammonia as a marine fuel and aim to provide a stable supply to meet existing demand (including chemical products and raw materials for fertilisers) and new demand (including fuel use in domestic thermal power plants), which is expected to grow in the future. By doing so, the project is expected to make a significant contribution to the decarbonisation of not only the maritime industry but also the energy industry.