Denmark's Maersk Tankers, a subsidiary of AP Moller Holding, has taken a significant step towards addressing the need for clean ammonia shipping solutions. The company has signed a contract with Hyundai Samho Heavy Industries for the construction of four 93,000 cubic meter vessels, with options for an additional six ships. This deal, potentially valued at over $1 billion, aims to provide a crucial transportation service for clean ammonia producers and users around the world. Maersk Tankers' commitment to the energy transition is evident as it strives to make the transportation of clean energy a reality.
Meeting the Demand for Clean Ammonia Carriers
The newbuilds ordered by Maersk Tankers will be among the largest ammonia carriers in operation, capable of efficiently transporting a full cargo of ammonia. The company's decision to re-enter the gas sector in 2023, after selling the business a decade earlier, demonstrates its dedication to embracing sustainable solutions. With a growing fleet of nearly 30 very large gas carriers, Maersk Tankers is well-positioned to contribute to the energy transition.
Collaboration with Co-Investor Mitsui & Co
Maersk Tankers has teamed up with Japanese trading house Mitsui & Co as a co-investor in the first four vessels. This partnership, valued at approximately $432 million, highlights the shared commitment to promoting clean ammonia shipping. By joining forces with Mitsui & Co, Maersk Tankers strengthens its financial capabilities and industry expertise, ensuring the successful realization of this ambitious project.
Technical Advancements for Clean Ammonia Shipping
To make the vessels capable of running on clean ammonia, Maersk Tankers is collaborating with MAN Energy Solutions and Hyundai Heavy Industries' engine machine division. However, the decision to install ammonia-capable engines requires regulatory and customer support. By working closely with industry leaders, Maersk Tankers aims to develop highly energy-efficient and safe ships that can effectively transport clean ammonia across various regions.
Maersk's Pursuit of Sustainable Fuels
Maersk Tankers' parent company, AP Moller Holding, has been actively exploring sustainable fuel options. In recent years, Maersk has identified both methanol and ammonia as potential fuels for the 2020s. The company has already ordered more than 20 methanol-powered boxships and established a global supply chain for methanol. Now, with its focus shifting towards ammonia, Maersk is reportedly closing in on orders for a new series of up to twelve 3,500 TEU boxships.
Summary
Maersk Tankers' newbuilding deal for clean ammonia shipping solutions marks a significant milestone in the energy transition journey. By investing in state-of-the-art vessels and collaborating with industry partners, the company is paving the way for sustainable transportation of clean energy. As regulatory frameworks and customer demand align with the use of clean ammonia, Maersk Tankers is poised to play a vital role in facilitating the global adoption of this eco-friendly fuel. Through concrete actions and innovative solutions, Maersk Tankers is driving positive change in the tanker industry and contributing to a greener future.
