Yara and NYK sign first charter contract for ammonia tankers

February 11, 2025

The Norwegian company Yara Clean Ammonia and the shipping company NYK have concluded the world’s first charter contract for an ammonia tanker.

The ship with a capacity of 40,000 m³ is scheduled for delivery in November 2026. It is the result of a joint study by the two companies, which has been running since 2021.

“Our successful collaboration with NYK not only enables us to comply with future regulations regarding CO2 emissions from ocean-going vessels,” said Murali Srinivasan, Senior Vice President Commercial at Yara Clean Ammonia, “but it also helps us to ensure that our customers throughout the supply chain receive clean ammonia that meets CO2 intensity requirements.” Unlike conventional fuel, the combustion of ammonia (NH₃) does not produce any climate-damaging emissions, only nitrogen and water.

Yara and NYK are jointly researching the NH3 supply chain

Since 2021, Yara Clean Ammonia and NYK have been jointly investigating the practical application of an ammonia-powered ammonia gas tanker. A medium-sized tanker (AFMGC, Ammonia-Fueled Medium Gas Carrier), the most popular type of vessel for the international transportation of ammonia, was chosen for a charter contract.

The use of such a tanker will contribute significantly to reducing greenhouse gas emissions in maritime shipping and building an ammonia supply chain by providing a more environmentally friendly means of transportation for ammonia, Yara said. Demand for the alternative fuel has risen sharply.

Yara Clean Ammonia, a subsidiary of fertilizer manufacturer Yara, operates the largest global ammonia network with 15 vessels and has access to 18 ammonia terminals and several ammonia production and consumption sites around the world through Yara.

Yara Clean Ammonia, NYK — (from left) Hans Olav Raen, CEO Yara Clean Ammonia; Takaya Soga, President NYK (front); Murali Srinivasan, Senior Vice President, Yara Clean Ammonia; Tsutomu Yokoyama, Executive Officer, NYK (back) (© Yara Clean Ammonia)

The shipping company is also optimistic about the deployment of an NH3 tanker. “In November 2023, we published the ‘NYK Group Decarbonization Story’, in which we declare the goal of achieving net-zero greenhouse gas emissions by 2050,” said Hironobu Watanabe, Managing Executive Officer of NYK. “We have developed an ammonia-powered vessel because we believe that the use of alternative fuels, especially ammonia, is essential to achieving the net-zero target.” They will continue to work together to build a supply chain for the fuel that is not limited to maritime transportation alone.