CMB.Tech’s Mineral Europa, described by its Belgian shipowner as the world’s first ammonia-powered dry bulk carrier, has completed sea trials, marking a step toward commercial deployment of the alternative fuel in large ocean-going cargo ships.
The 210,000-deadweight-ton Newcastlemax was built at China’s Qingdao Beihai Shipyard and will operate under a charter agreement with Australian miner Fortescue. Its dual-fuel engine can run on ammonia or conventional marine fuel.
Following the trials, the vessel took on 1,000 metric tons of green ammonia in a ship-to-ship bunkering operation at Zhoushan, China. The Mineral Europa departed for Australia on its maiden voyage Oct. 14.
The vessel leads a broader fleet expansion. CMB.Tech (NYSE: CMBT), based in Antwerp, plans deliveries of 21 ammonia-powered ships through 2029, comprising 18 dry bulk carriers, one containership and two chemical tankers. The company said Oct. 9 that most were expected to be delivered within the following nine months.
“Mineral Europa is the first of its kind, but many more will follow in the months and years ahead,” CMB.Tech Chief Executive Alexander Saverys said in the company’s announcement.
The business case for ammonia-powered shipping is decarbonization, not cheaper fuel, as ship owners are betting that long-term cargo contracts, lower emissions-related costs and protection against future regulation, particularly in Europe, will eventually outweigh more expensive ships and fuel. DNV’s assessment is that fuel cost remains the biggest barrier to making that equation work.
Ammonia-fueled newbuilds typically cost 15%–20% above conventional designs, according to maritime risk analyst DNV, and European green ammonia at about $2,900 per metric ton of marine-gas-oil-equivalent energy is roughly five times that of diesel fuel. Ammonia also requires nearly three times the fuel volume of diesel for equivalent energy, the analyst said, creating trade-offs among tank space, cargo capacity, range and bunkering frequency.
The Fortescue charter connects the new propulsion technology with a major dry bulk cargo customer. In June, the mining company agreed to charter up to 12 CMB.Tech Newcastlemax vessels. Up to three are to be delivered with dual-fuel ammonia engines, while the remainder are to be delivered ammonia-ready, according to reports.
CMB.Tech is also investing in the infrastructure needed to support ammonia-fueled operations, including fuel storage and bunker barges. The company said introducing the ships is only part of the transition, with safe and efficient fuel delivery also needed to support their deployment.
The owner is promoting green ammonia as a fuel produced using renewable electricity, water and air, and says ammonia releases no carbon dioxide when burned. That claim concerns combustion of the ammonia itself; Mineral Europa also retains the ability to operate on conventional marine fuel.
Read more articles by Stuart Chirls here.
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