Green light for world’s first ammonia bunkering terminal

Business Developments & Projects

March 25, 2024, by Aida Čučuk

The Norwegian Directorate for Civil Protection (DSB) has given its approval for the construction of an ammonia bunkering facility at Fjord Base in Florø, planned by Yara Clean Ammonia, a subsidiary of Yara International, Azane, Norwegian ammonia bunkering startup, and Fjord Base, Norwegian supply base.

Illustration of Yara Clean Ammonia, Azane and Fjord Base bunkering barge; Courtesy of Yara

The permit marks a significant milestone for enabling ammonia as a safe and low-emission alternative to traditional shipping fuels, Yara said, adding that even though interest in ammonia as a decarbonized shipping fuel is high, the final leg of the journey, from the production plant to the vessel, has been missing.

“Now Yara Clean Ammonia, Azane and Fjord Base have demonstrated how the planned ammonia bunkering terminal can meet the strict safety requirement of the Norwegian Directorate for Civil Protection (DSB),” Yara pointed out.

According to Yara, the planned terminal consists of a floating stationary barge with a capacity of 1000 cubic meters, or 650 tons, of low-emission ammonia, and the permit allows for up to 416 operations annually, many of these expected to be bunkering operations for offshore supply vessels that regularly call at Fjord Base in Florø.

As for what the next steps of the project will be, Yara revealed that Yara Clean Ammonia, Azane and Fjord Base will commence work with their project partners to obtain a permit with the local municipality before a final investment decision (FID).

Magnus Ankarstrand, President of Yara Clean Ammonia, said: “We are grateful for the permit awarded from the Norwegian Directorate for Civil Protection. This acknowledges how ammonia can be used safely and efficiently as a shipping fuel at the site in Kinn. The ammonia terminal will enable the decarbonization of the maritime sector and showcase ammonia’s assets as a zero-emission shipping fuel. We look forward to working together with our partners and the local community in Kinn to complete the project and provide the shipping fuel for the future to the Norwegian offshore supply segment.”

Steinar Kostøl, VP of Projects & Products, Azane, commented: “This marks a milestone for ammonia as a fuel. Now we finally know with certainty the safety zones we will have to operate under when bunkering ammonia. The required safety zones are very encouraging and demonstrate how it will be possible to bunker ammonia in the biggest and busiest ports around the world.”

Stig Førde, CEO of Fjord Base, stated: “The Fjord Base community welcomes with great enthusiasm the declaration of conformity issued by DSB. It underscores our commitment to providing our customers with innovative solutions aimed at minimizing their carbon footprint. The development of an ammonia bunkering terminal marks a significant step forward in this endeavor, bolstering our competitive edge at Fjord Base and showcasing our dedication to sustainability.”

To note, Yara Clean Ammonia and Azane plan to roll out a network of terminals in Scandinavia to showcase ammonia as a carbon-free, safe and reliable fuel for the shipping industry.