Trafigura Collaborates with HD Hyundai to Procure Ammonia-Fueled Ships

Trafigura, a dominant player in the worldwide commodities sector, has entered into an agreement for the construction of four Medium Gas Carriers (MGC), which will have the capacity to utilize low-carbon ammonia as a fuel for propulsion upon completion. These ships will be constructed at HD Hyundai Mipo Dockyard located in Ulsan, South Korea.

The ships will transport either LPG or ammonia, with the initial vessel scheduled for delivery in 2027. Upon delivery, each vessel will feature a dual-fuel engine capable of running on low-carbon ammonia, aligning with Trafigura's pledge to decrease the carbon intensity of its shipping fleet by 25 percent by 2030.

As part of the Getting to Zero coalition by the Global Maritime Forum and as a founding participant of the First Movers Coalition, Trafigura is dedicated to contributing to the development of low-carbon fuels and ships essential for the decarbonization of worldwide shipping. This recent announcement signifies a significant progression in these endeavors.

"We are excited to partner with HD Hyundai Mipo on this ambitious initiative, in line with our objectives to decrease shipping emissions and support the development of a worldwide low-carbon ammonia bunkering infrastructure, essential for realizing zero-carbon shipping," said Andrea Olivi, Head of Wet Freight at Trafigura.

Trafigura stands as one of the globe's major vessel charterers, overseeing over 5,000 voyages annually with approximately 400 ships under its management. Pioneering the push for a worldwide carbon pricing mechanism to curb emissions, the company consistently explores avenues to enhance emission reduction across its fleet.

The company has conducted trials with various alternative shipping fuels, including LNG, methanol, LPG, and biofuels, across its owned and chartered vessels, distinguishing itself as one of the select operators to do so. Additionally, it has collaborated in the development of a two-stroke engine by MAN Energy Solutions capable of operating on green ammonia and has also invested in onboard carbon emission capture technology.

Further investments are being directed towards broader efficiency enhancements, including silicone hull coating, wake equalizing ducts, ultrasonic propeller antifouling technology, and ongoing underwater hull cleaning and propeller polishing.

Trafigura is among the founding members of the Sea Cargo Charter, an industry coalition formed to gather, evaluate, and disclose shipping emissions data. Additionally, it plays a pivotal role in the Global Maritime Forum’s Getting to Zero coalition and was instrumental in establishing the First Movers Coalition.

Trafigura, a prominent commodities conglomerate, established by its employees three decades ago, plays a central role in the global supply chain. It facilitates the connection of essential resources for powering and constructing the world. Leveraging its infrastructure, market acumen, and extensive logistics network, Trafigura orchestrates the movement of oil, petroleum products, metals, minerals, gas, and power from production sites to destinations of demand. Through fostering robust partnerships, Trafigura enhances supply chains, making them more efficient, secure, and sustainable.