A Japanese consortium made up of shipowner Nippon Yusen Kabushiki Kaisha (NYK), Japan Engine Corporation, IHI Power Systems and Nihon Shipyard have signed a series of contracts to build the world's first ammonia-fueled midsize gas carrier (AFMGC), NYK announced in a news release on Thursday.
The 40,000-cubic-meter AFMGC is expected to be completed in November 2026. Both the main and auxiliary engines with be ammonia dual-fuel, in other words it will be able to fire ammonia with fuel oil to power the engines.
The completion of the vessel will be a significant step toward the realization of decarbonization in the maritime sector, NYK said.
The Japanese shipowner announced plans to develop Japan's first ammonia bunkering boom, a device used to supply fuel between ships, in August last year, a key part in enhancing the safety of supplying ammonia.
Ammonia is expected to play an important role in the decarbonization of the maritime industry, given the fuel does not emit carbon dioxide when burned.
Ammonia, which has traditionally been used for fertilizer and other chemical raw material applications, is expected to be used for co-firing in thermal power plants and as a hydrogen carrier. Hydrogen is inefficient to move in a gaseous state because of its low energy density, making it more viable to move the product in the form of ammonia before cracking it into hydrogen on discharge.
"At the same time, demand for ammonia production and marine transportation will also increase, and an ammonia value chain is expected to be established sequentially," NYK noted.
"After the ship is completed, the consortium will continue to operate the vessel for demonstration purposes to confirm the vessel's performance, including environmental friendliness and the practicality of the operation manual, and to provide user feedback to shipbuilders and marine equipment manufacturers for further improvements. We will strive to build a development cycle as a 'first mover' in developing ammonia-fueled vessels," NYK added.
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--Reporting by Jamie Aldridge, jaldridge@opisnet.com; Editing by Yazdi Merchant, ymerchant@opisnet.com
(END) Dow Jones Newswires
01-25-24 0758ET
