Shipping’s Fuel Transition Hinges on a Number Nobody Has Agreed On Yet
International shipping is being asked to decarbonise before it knows what it will burn.
Belgian gas shipping company Exmar is partnering up with Canadian fertilizer company Nutrien to develop and build a low carbon ammonia-fueled vessel.
The two companies have signed a Collaboration Agreement seeking to deploy the ammonia-fueled vessel as soon as 2025. The process will involve selecting an ammonia engine and supply system manufacturer, as well as a shipyard to construct the vessel.
Nutrien has actively been pursuing the development of low-carbon ammonia for more than a decade, and has approximately 1 million tonnes of production capability through its Redwater and Joffre Alberta operations, as well as its Geismar, Louisiana facility which employs carbon capture and sequestration technology to reduce the carbon intensity of its ammonia. The new vessel will get its low-carbon ammonia fuel supply from the Geismar facility.
When compared to conventional fuels, the use of Nutrien’s existing low-carbon ammonia is anticipated to achieve a reduction of greenhouse gas emissions of up to 40 percent, while emissions reductions of up to 70 percent can be achieved with the development of low-carbon ammonia using proven, scalable, best available technology and permanent sequestration of CO2, according to a press release.
“Nutrien is excited to partner with EXMAR on our shared journey to drive transformative reductions in maritime emissions,” says Raef Sully, Nutrien’s Executive Vice President and CEO of Nitrogen and Phosphate. “This initiative demonstrates how we are taking action to achieve our Feeding the Future Plan’s 2030 sustainability commitments, which include investing in low-carbon ammonia innovations.”
“EXMAR has always strived to contribute to innovations and increase efficiencies in gas logistics and transportation. The development of an ammonia-fueled vessel together with our long-standing partner Nutrien is an exciting and logical next step for us,” says Jens Ismar, Executive Director Shipping.
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