Yara Clean Ammonia, North Sea Container Line (NCL), and Yara International joined forces to realize the world’s first container ship that will use pure ammonia as fuel. Yara Eyde will operate between Norway and Germany and be the first emission-free sea route to the continent.
Established in 1998, NCL is the leading container operator between continental ports to the West and North of Norway. The container line is the largest operator in the Norwegian sailing area, with 150,000 TEUs (twenty-foot equivalent units) and revenue of 64 million Euros in 2021. Its main shareholder is Elkem ASA.
In NCL’s quest for a more sustainable future, a 1,300TEU methanol-fueled container ship had been placed in order in June 2022 for delivery in 2024. This vessel will sail alongside the West-, and North Norway coastline. This project has been awarded funds from Enova for the electrification measures.
“The world is in the midst of a climate crisis, and all good forces must now come together to quickly cut emissions. We are pleased to be able to collaborate across sectors and show that decisive emission cuts are possible. The green journey started with Yara Birkeland, the world’s first autonomous electric container ship, and now we are continuing it with Yara Eyde, which will be the world’s first container ship running on pure ammonia,” said Svein Tore Holsether, president and CEO of Yara International.
Yara Clean Ammonia is uniquely positioned to enable the hydrogen economy in a market expected to grow substantially over the following decades. It aims to significantly strengthen its leading global position as the world’s largest ammonia distributor, unlocking the green and blue value chains and driving the development of clean ammonia globally.
1st green shipping lane to Europe
Yara Eyde is optimized for the trade corridor between Norway and Europe, and will operate between Oslo, Brevik, Hamburg, and Bremerhaven. From 2026 onwards, Norwegian companies can export their products on a green keel, and trade goods can be imported emission-free into Norway.
“We see there is increasing demand from cargo owners to reduce emissions. The vessel offers competitive and emission-free logistics to all cargo owners in the Oslo Fjord and Greenland region,” said Bente Hetland of NCL.
World’s largest ammonia producer
Through its established position as the world’s largest ammonia company with economies of scale in production, terminals, and ammonia vessels, Yara has a unique opportunity to scale up these business areas by participating in developing new market segments. The most important of the new features will be related to shipping.
“Yara has chosen to participate in this project to show that this segment can create additional ammonia growth in the short term. Yara will contribute to developing this new market, but we will strategically use our funds to develop the production and logistics segment and not prioritize ship ownership,” said Magnus Krogh Ankarstrand, president of Yara Clean Ammonia.
Safe bunkering network for pure ammonia
Yara Clean Ammonia will supply Yara Eyde with ammonia produced fossil-free or virtually carbon-free. Together with Azane Fuel Solutions, a storage and bunkering network is being developed to make clean ammonia available in Norwegian and, eventually, Scandinavian ports. The bunkering network can also contribute to achieving Norway’s goal of emission cuts from the offshore sector.
Enova and Innovation Norway are supporting the first pilots, and one of the barges is planned to supply Yara Eyde with low-emission fuel in Brevik. Yara Eyde wants a range of energy-saving measures.
“We will maintain the highest safety and quality standards and draw on Yara’s extensive ammonia experience. This will ensure that the production, storage, and bunkering of pure ammonia will take place without negative impact on the crew or the environment,” said Ankarstrand.
Pure ammonia cuts ship emissions
Maritime transport causes over 2% of global CO2 emissions. In 2022, this amounted to 706 million tons of CO2 worldwide. Pure ammonia will help cut emissions from shipping so that goods can be transported across the globe emission-free.
“Ammonia as a fuel does not pollute. When we produce ammonia from renewable energy or with natural gas, where up to 95% of CO2 emissions are captured and stored permanently, pure ammonia will quickly be a good solution for cutting carbon emissions in the maritime sector. Yara Eyde will demonstrate the maturity of ammonia as a maritime fuel,” explained Ankarstrand.
The fertilizer from Yara Porsgrunn contributes to food for 48 million people worldwide. Production accounts for 3% of exports from the mainland and will now be transported emission-free from Herøya to continental Europe.
“As a direct continuation of the green logistics with Yara Birkeland, the ammonia-powered vessel Yara Eyde will expand the zero-emission value chain from Brevik to ports on the continent. With an emission-free sea voyage from Brevik to Europe, Yara scope 3 removes emissions by 11,000 tons of CO2 per year,” said Holsether.
“With our industrial DNA from our main shareholder, Elkem, NCL is very pleased to see Birkeland and Eyde reunite to facilitate a new industrial revolution. The partnership with Yara fits perfectly with our ambitious emissions strategy, and we are pleased to see the commitment Yara has shown to reduce emissions,” said Hetland.
To realize the world’s first ammonia-powered container ship, Yara Clean Ammonia AS and NCL are establishing a joint venture. NCL Oslofjord AS will operate the ammonia-powered vessel Yara Eyde. When launched, the joint venture aims to become the world’s first line operator to focus exclusively on ammonia-powered container ships. Yara Eyde has been awarded just over NOK 40 million by Enova, and the support is decisive for implementing the project. (Story and images courtesy of Yara Clean Amonia)