NYK Bulkship (Asia), part of NYK Line, Golden Island and Yara Clean Ammonia have signed a non-binding term sheet to explore the marketing and supply of low-carbon ammonia as a marine fuel in Singapore.
In a joint press statement, the companies said the agreement will focus on supplying maritime end-users in the port with a view to starting operations within this decade. Discussions between the parties began in early 2024.
NYK Bulkship (Asia) brings experience from LNG bunkering operations and ammonia carrier projects, while Golden Island provides local bunkering expertise (including scheduling and customer relationships), and Yara Clean Ammonia supplies production and handling capabilities.
Singapore is the world’s largest bunkering hub and supplies approximately 20 per cent of global marine fuel. The Maritime and Port Authority of Singapore is developing multiple alternative fuel initiatives, including ammonia, methanol and biofuels, as part its maritime decarbonisation strategy. Ammonia, however, presents specific operational challenges, such as dedicated storage, handling systems and safety procedures due to its toxicity.
Murali Srinivasan, SVP Commercial at Yara Clean Ammonia, said: ‘This partnership marks an important milestone in realizing our vision of a low-emission ammonia supply chain for new markets. Together with NYK Line and Golden Island, we are developing a last-mile ecosystem that will make low-emission ammonia bunkering available safely and reliably at one of the world’s most critical maritime hubs.’
The companies said that the partnership will combine their capabilities to support the development of ammonia bunkering infrastructure and supply arrangements in Singapore.
Atsuya Nojiri, Managing Director of NYK Bulkship (Asia), commented: ‘With its potential to significantly reduce greenhouse gas emissions, ammonia is expected to play an important role in the future marine fuel mix. NYK group’s primary objective is to safely establish the infrastructure required to accelerate the adoption and scaling of ammonia-fueled vessels, while taking a leading role through collaboration with experienced industry partners.’
Ammonia is being assessed by shipowners as a zero-or-near-zero-emission fuel option because it does not emit CO2 when combusted. However, wider commercial deployment will depend on the availability of fuel supply, the development of bunkering infrastructure and the establishment of safety and regulatory frameworks.
NYK, Golden Island and Yarahave not yet disclosed volumes, investment commitments or specific timelines beyond a target to begin operations within this decade.
