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CMB.TECH Acquires the World's First Ammonia-Powered Container Ship
CMB.TECH Acquires the World's First Ammonia-Powered Container Ship

CMB.TECH Acquires the World's First Ammonia-Powered Container Ship

  • 20-Feb-2024 3:41 PM
  • Journalist: Li Hua

CMB.TECH, in collaboration with Yara Clean Ammonia, North Sea Container Line, and Yara International, has initiated a groundbreaking venture by ordering the world's first ammonia-powered container vessel through a 15-year deal. The vessel, named Yara Eyde, is set to become a pioneering 1,400 TEU ice-class container ship, with construction taking place at Qingdao Yangfan Shipbuilding. Anticipated for delivery by mid-2026, Yara Eyde will hold the distinction of being the first ammonia-powered container vessel globally, operating on clean ammonia and facilitating routes between Norway and Germany.

Ownership of the vessel will rest with Delphis, the container division under CMB.TECH, while operational responsibilities will be shouldered by NCL Oslofjord—a joint venture between North Sea Container Line and Yara Clean Ammonia. The commercial operations aspect will be managed by NCL's existing setup, with Yara Clean Ammonia overseeing the delivery of ammonia fuel to the vessel. This strategic partnership has solidified a long-term contract of affreightment with Yara International, focusing on transporting containers between Yara's fertilizer plant in Porsgrunn, Norway, and the ports of Hamburg and Bremerhaven in Germany. NCL Oslofjord aspires to be the world's inaugural line operator concentrating exclusively on ammonia-powered ships.

Alexander Saverys, the CEO of CMB.TECH, expressed the collective commitment of Yara, NCL, and CMB.TECH to decarbonize shipping by leveraging their expertise in clean ammonia, operational excellence in the North Sea, and cutting-edge low-carbon ship technology. The initiative aims to demonstrate the practicality of decarbonization in the shipping industry today, paving the way for clean ammonia to emerge as a dominant and sustainable fuel.

Bente Hetland, CEO of NCL, emphasized the significance of the project in proving the feasibility of decarbonization, asserting confidence that it will establish clean ammonia as a leading fuel in the maritime sector. The collaboration underscores a shared vision to address the environmental challenges associated with conventional shipping practices.

This groundbreaking initiative aligns with the broader industry trend toward cleaner and sustainable maritime solutions. The adoption of ammonia as a fuel represents a significant step toward reducing the carbon footprint of the shipping sector and aligns with the global push for environmentally friendly practices.

In a related development, Euronav, the dual-listed tanker giant based in Antwerp, moved forward with an acquisition deal worth $1.15 billion to acquire CMB.TECH. Over 99% of Euronav shareholders voted in favor of the acquisition, marking a pivotal moment for the company. This acquisition positions Euronav as the new owner of CMB.TECH, which comprises diverse divisions involved in building, owning, operating, and designing hydrogen and ammonia-powered ships across various segments, including offshore wind support, dry bulk, containers, chemical tankers, and more.

The strategic alignment between CMB.TECH and Euronav underscores the industry's recognition of the growing importance of sustainable shipping practices. As the maritime sector undergoes transformative changes to embrace greener technologies, acquisitions and partnerships play a crucial role in accelerating the adoption of innovative and environmentally responsible solutions.

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