Category

Countries

Maersk Tankers Secures Order for Up to 10 Ammonia Carriers in South Korea
Maersk Tankers Secures Order for Up to 10 Ammonia Carriers in South Korea

Maersk Tankers Secures Order for Up to 10 Ammonia Carriers in South Korea

  • 01-Dec-2023 7:15 PM
  • Journalist: Jung Hoon

Denmark's Maersk Tankers has taken a significant step towards a sustainable shipping solution by securing a newbuilding contract for up to 10 ammonia carriers in South Korea. This move aligns with the company's commitment to addressing the growing need for clean energy transportation. As a subsidiary of AP Moller Holding, Maersk Tankers has entered into an agreement with Hyundai Samho Heavy Industries for the construction of four vessels, each with a capacity of 93,000 cubic meters. Delivery for these initial units is expected from 2026 onwards, with the option to build an additional six ships. The entire contract holds the potential to exceed a total value of $1 billion.

The co-investment structure involves Japanese trading company Mitsui & Co, which will participate as a co-investor in the first four vessels, contributing approximately $432 million to the project.

These forthcoming vessels are poised to become some of the largest ammonia carriers globally, boasting the capability to transport a full cargo of ammonia. Maersk Tankers, having re-entered the gas sector in 2023, is providing voyage management services for a growing fleet of nearly 30 very large gas carriers.

Tina Revsbech, CEO of Maersk Tankers, emphasized the importance of tangible actions within the tanker industry to propel the energy transition forward. She stated, "With this initiative, we will be able to service clean ammonia producers and users in many parts of the world with highly energy-efficient and safe ships."

To ensure these vessels can operate using 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 is contingent on both regulatory and customer support.

Around three years ago, Maersk, the liner giant under AP Moller Holding, identified methanol and ammonia as potential fuels for the 2020s. Subsequently, the company has ordered over 20 methanol-powered container ships and secured methanol supplies globally. The ammonia aspect of its fuel strategy is now gaining prominence, with reports suggesting that Maersk is on the verge of ordering a new series of up to twelve 3,500 TEU boxships, with ammonia as a potential propulsion option.

This strategic move by Maersk Tankers underscores its commitment to playing a crucial role in the energy transition, offering a sustainable and efficient transportation service for clean energy producers and users worldwide. The deployment of ammonia carriers aligns with the broader goal of Maersk and its subsidiaries to leverage cleaner fuels and technologies to drive the maritime industry toward a more sustainable future.

Related News

Enova Fuels Innovation with Funding for Hydrogen and Ammonia Vessels
  • 21-Jun-2024 4:57 PM
  • Journalist: Stella Fernandes
Amogy and Plastic 2 Green Forge Alliance to Lead Ammonia Energy Innovation
  • 19-Jun-2024 7:15 PM
  • Journalist: Motoki Sasaki
Abraxas Power Selects McDermott to Construct Green Hydrogen and Ammonia Facility
  • 18-Jun-2024 12:25 PM
  • Journalist: S. Jayavikraman
Falling Demand Leads Ammonia Prices to Carry Bearish Momentum in China and the USA
  • 17-Jun-2024 3:02 PM
  • Journalist: Francis Stokes