NYK inks first time charter deal for ammonia-fuelled medium gas carrier

Nippon Yusen Kabushiki Kaisha (NYK) signed a deal that will see YCA time charter an ammonia-fuelled medium gas carrier that is scheduled for delivery in November 2026.

The companies have concluded what they are calling the world’s first time charter contract for this type of gas carrier running on ammonia fuel. Medium-sized gas carriers are currently the most commonly used vessel type in the international maritime transport of ammonia.

“We have been developing an ammonia-fuelled vessel because we believe that using alternative fuels, especially ammonia, is essential to reaching the net-zero goal," NYK managing executive officer Hironobu Watanabe said. "We will continue to work with Yara on building an ammonia supply chain from various aspects, not only in the maritime transport of ammonia."

Yara Clean Ammonia and NYK undertook a joint study of the practical application of an ammonia-fuelled ammonia gas carrier, that began in 2021. The new vessel is 40,000 m³, and measures 180 m in length. 

“This charterparty... will give us great flexibility to manage carbon emissions and product carbon intensity. I look forward to a successful co-operation in operating this new technology to its best efficiency,” YCA vice president Csaba Laszlo said.

According to the two companies, the use of an ammonia-fuelled medium gas carrier will reduce greenhouse gas emissions from the marine transport of the product and aid in developing an ammonia supply chain as demand grows for ammonia across maritime and other hard-to-abate industrial economic sectors. 

Yara Clean Ammonia operates the largest global ammonia network with 15 ships and has, through Yara, access to 18 ammonia terminals and multiple ammonia production and consumption sites across the world.