Sumitomo Corporation and Höegh Autoliners, on the back of COP28 held in Dubai, announced that the parties are charting a greener course in deep-sea transportation of Ro-Ro cargo, such as cars, high and heavy machinery and breakbulk, by forging an agreement to look into the supply of clean ammonia as a bunker fuel at the ports of Singapore and Jacksonville, USA from 2027 onwards.
The two companies have formalized their commitment through a Letter of Intent to collaborate on the supply and delivery of clean ammonia as a next-generation sustainable maritime fuel for Höegh Autoliners’ upcoming Aurora Class PCTC vessels. The twelve state-of-the-art vessels are set to become the largest and most eco-friendly car carriers ever built, boasting the capability to run on zero-carbon ammonia or carbon-neutral methanol. The Letter of Intent symbolizes a remarkable step in the realization and development of the production and consumption of clean maritime fuels. The collaboration hopes to stimulate the upscaling of the supply and demand of clean ammonia for maritime usage.
As explained, Höegh Autoliners and Sumitomo Corporation are strongly endorsing the transition toward sustainable long-distance maritime transport and the adoption of eco-friendly fuels and propulsion systems. Both companies view clean ammonia as a promising future fuel for the maritime industry, offering substantial potential in addressing the challenges associated with greenhouse gas emissions in global shipping. To support this vision, both entities have launched a range of initiatives throughout the ammonia value chain, with a primary focus on making clean ammonia a viable choice for maritime fuel and thereby achieving significant reductions in emissions from the global shipping sector.
Moving forward, the companies will embark on a comprehensive evaluation of the compatibility between the PCTC vessels and the ammonia bunkering facilities at the identified bunker ports. They endeavour to make necessary adjustments to specifications for both “shore-to-ship” and “ship-to-ship” bunkering operations and undertake safety assessments to establish standardized operational protocols and regulations in close coordination with pertinent government agencies.
The commitment with Sumitomo Corporation is a strong strategic move in our efforts to offer our customers net-zero transportation globally, addressing the need for sustainable fuel availability in key ports such as Singapore and Jacksonville. Pioneering net-zero transportation on ammonia-powered vessels places us at the forefront of the international shipping industry, and we take pride in collaborating with Sumitomo Corporation to achieve this significant milestone.
..says Andreas Enger, CEO of Höegh Autoliners.
Ammonia as a marine fuel
Ammonia, which does not emit any CO2 when combusted, has long been considered one of the most promising alternative marine fuels to reduce greenhouse gas (GHG) direct emissions within the shipping industry which aligns with the revised International Maritime Organization (IMO) strategy to reach net-zero emissions from international shipping “close to” 2050 on a life-cycle basis.
In compliance with requirements on carbon intensity from each auto-manufacturer, Sumitomo Corporation supplies various types of clean ammonia; “green ammonia” produced from renewable energy, “blue ammonia” with the CO2 from the production processes captured and permanently stored and “bio ammonia” produced from renewable natural gas, certified by International Sustainability & Carbon Certification (ISCC) in accordance with the EU Renewable Energy Directive.