Germany-based energy trader Mabanaft has signed a memorandum of understanding (MoU) with shipping and container transportation firm Hapag-Lloyd to evaluate options for supplying low-carbon ammonia as a bunker fuel in and around the ports of Hamburg and Houston.

In November 2022, Mabanaft announced it would develop with US industrial gases firm Air Products a large-scale ammonia import terminal at the port of Hamburg, with startup expected in 2026. The energy trader also holds an operating stake in Gulf Coast Ammonia, a 1.3mn t/yr facility in Texas due for commissioning by mid-2023, although the source for the plant’s hydrogen feedstock has not been disclosed.

“When produced with renewable energy, ammonia is a promising sustainable fuel,“ Christensen, Hapag-Lloyd

“Ammonia has the potential to play an important role in decarbonising the global maritime industry. It has a higher energy density compared to, for example, pure hydrogen and is more easily transported and stored,” says Tony Elliott, Mabanaft’s head of ammonia.

Ammonia does not emit carbon emissions on combustion, only nitrogen and water. However, the chemical itself is highly toxic and corrosive, and no commercial vessels currently run on ammonia fuel.

“When produced with renewable energy, ammonia is a promising sustainable fuel that may become an integral part of the energy mix of future maritime shipping. We look forward to this partnership with Mabanaft and to jointly making progress on the industry’s path towards climate neutrality,” says Jan Christensen, senior director for global fuel purchasing at Hapag-Lloyd.

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Author: Polly Martin