Yara Clean Ammonia, NorthSea Container Line and Yara International join forces to realize the world’s first container ship that will use pure ammonia as fuel. Yara Eyde will operate between Norway and Germany and be the first emission-free sea route to the continent.
“The world is in the middle of a climate crisis and all good forces must now come together to quickly cut emissions. We are happy to be able to collaborate across sectors and show that decisive emission cuts are possible. The green journey started with the Yara Birkeland, the world’s first self-driving electric container ship, and now we continue it with the Yara Eyde, which will be the world’s first container ship on pure ammonia,” says Svein Tore Holsether, CEO of Yara International.Â
First green shipping route to Europe Â
Yara Eyde is optimized for the trade corridor between Norway and Europe and will operate between Oslo, Brevik, Hamburg and Bremerhaven. From 2026, Norwegian companies can export their products on a green keel, and trade goods can be imported emission-free into Norway.
“We see there is increasing demand from product owners to reduce emissions. The ship offers competitive and emission-free logistics to all cargo owners in the Oslofjord and the Greenland region,” says Bente Hetland of North Sea Container Line.Â
Strategi for Yara International
Through its established position as the world’s largest ammonia company with economies of scale in production, terminals and ammonia ships, Yara has a unique opportunity to scale up these business areas by participating in developing new market segments. The most important of the new segments will be related to shipping.
“Yara has chosen to participate in this project to show that this segment can create additional growth for ammonia in the short term. Yara will contribute to developing this new market, but we will strategically use our funds to develop the production and logistics segment and not prioritize ownership in ships”, says Magnus Krogh Ankarstrand, head of Yara Clean Ammonia.
Safe bunkering network for pure ammonia
Yara Clean Ammonia will supply Yara Eyde with ammonia that is produced fossil-free or almost carbon-free. Together with Azane Fuel Solutions, a storage and bunkering network is being developed to make pure ammonia available in Norwegian and eventually Scandinavian ports. The bunkering network can also contribute to achieving Norway’s goal of cutting emissions from the offshore sector.
Enova and Innovation Norway support the first pilots and one of the barges is planned to supply Yara Eyde with low-emission fuel in Brevik. Yara Eyde wants a number of energy saving measures
“We will have the highest safety and quality standards and draw on Yara’s extensive experience with ammonia. It will ensure that the production, storage and bunkering of pure ammonia will take place without negative impact on the crew or the environment,” says Magnus Krogh Ankarstrand.
Pure ammonia cuts the emissions of ocean-going ships Â
Maritime transport causes 2.8% of global CO2 emissions. In 2022, this amounted to 706 million tonnes of CO2 worldwide. Pure ammonia will help to cut emissions from shipping so that goods can be transported across the globe emission-free.
“Ammonia as a fuel does not pollute. When we produce ammonia from renewable energy or with natural gas where up to 95% of the CO2 emissions are captured and stored permanently, pure ammonia will quickly be a good solution for cutting carbon emissions in the maritime sector. Yara Eyde will demonstrate the maturity of ammonia as a maritime fuel,” says Ankarstrand.
Yara cuts scope 3 emissions by 11,000 tonnes of CO2 per year
The fertilizer from Yara Porsgrunn contributes to food for 48 million people worldwide. Production makes up 3% of exports from the mainland and now it will be transported emission-free from Herøya to the continent.
“As a direct continuation of the green logistics with Yara Birkeland, the ammonia-powered ship Yara Eyde will extend the zero-emission value chain from Brevik to ports on the continent. With an emission-free sea journey from Brevik to Europe, Yara scope 3 removes emissions by 11,000 tonnes of CO2 per year,” says Svein Tore Holsether.Â
“This unique project takes a big step towards supply chains with zero emissions for Yara and demonstrates that ammonia will be able to provide cost-effective and environmentally friendly sea transport.”
Magnus Krogh Ankarstrand, head of Yara Clean Ammonia
“With our industrial DNA from our main shareholder Elkem, NorthSea Container Line is very pleased to see Birkeland and Eyde reunite to facilitate a new industrial revolution. The collaboration with Yara fits perfectly with our ambitious emissions strategy, and we are pleased to see the commitment Yara has shown to reduce emissions,” says Hetland.
Cooperation required to achieve the climate goals
In order to realize the world’s first ammonia-powered container ship, Yara Clean Ammonia AS and NorthSea Container Line AS are establishing a joint venture. NCL Oslofjord AS will operate the ammonia-powered ship Yara Eyde. Upon establishment, the joint venture aims to become the world’s first line operator to focus exclusively on ammonia-powered container ships. Yara Eyde has been awarded just over NOK 40 million by Enova and the support is decisive in being able to carry out the project. Establishment of the joint venture and ordering of the ship is conditional on the completion of binding agreements and the necessary approvals from the authorities.
About Yara
Yara grows knowledge to responsibly feed the world and protect the planet. Supporting our vision of a world without hunger and a planet respected, we pursue a strategy of sustainable value growth, promoting climate-friendly crop nutrition and zero-emission energy solutions. Yara’s ambition is focused on growing a nature positive food future that creates value for our customers, shareholders and society at large and delivers a more sustainable food value chain.
To achieve our ambition, we have taken the lead in developing digital farming tools for precision farming and work closely with partners throughout the food value chain to improve the efficiency and sustainability of food production. Through our focus on clean ammonia production, we aim to enable the hydrogen economy, driving a green transition of shipping, fertilizer production and other energy intensive industries.
Founded in 1905 to solve the emerging famine in Europe, Yara has established a unique position as the industry’s only global crop nutrition company. We operate an integrated business model with around 17,000 employees and operations in over 60 countries, with a proven track record of strong returns. In 2022, Yara reported revenues of USD 24 billion. www.yara.comÂ
About Yara Clean Ammonia
Yara grows knowledge to responsibly feed the world and protect the planet. Yara Clean Ammonia is uniquely positioned to enable the hydrogen economy in a market expected to grow substantially over the next decades. We aim at significantly strengthening our leading global position as the world’s largest ammonia distributor, unlocking the green and blue value chains, and driving the development of clean ammonia globally.
Building on Yara’s leading experience within global ammonia production, logistics and trade, Yara Clean Ammonia works towards capturing growth opportunities in low-emission fuel for shipping and power, carbon-free food production and ammonia for industrial applications.
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. Revenues and EBITDA for the full year 2022 were USD 4,422 million and USD 249 million respectively. Yara Clean Ammonia is headquartered in Oslo, Norway www.yaracleanammonia.com
About NCL
North Sea Container Line is the leading container operator between continental ports to West-, North of Norway. Founded in 1998, 27 employees and headquarters in the maritime city of Haugesund. The container line is the largest operator in the Norwegian sailing area with 150.000TEUs and a revenue of 64MEUR in 2021. Main shareholder Elkem ASA.
In NCL’s quest for a more sustainable future 2*1300TEUs methanol-fuelled containership has been placed in order June 2022 for delivery in 2024. These vessels will sail alongside the West-, and North Norway coastline. This project has been awarded funds from Enova for the electrification measures.
NCL will develop a suitable portfolio of industrial-, Deepsea- and Shortsea- volumes on the import side to complement the large export volumes from Yara Porsgrunn https://www.ncl.no/
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