Norway gives green light to build world’s first low emission ammonia bunkering terminal

The Norwegian Directorate for Civil Protection has granted a safety permit to the construction of the planned ammonia bunkering facility at Fjord Base in Florø, Norway, according to Yara Clean Ammonia on Monday (25 March). 

The planned terminal, to be developed by Yara Clean Ammonia and Azane, will consist of a floating stationary barge with a capacity of 1,000 cubic metres, or 650 tonnes, of low-emission ammonia. 

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.

The planned terminal is part of Yara Clean Ammonia and Azane’s efforts to make low-emission ammonia a common fuel for shipping. 

With ammonia’s potential to fully decarbonise the maritime sector, the companies plan to roll out a network of terminals in Scandinavia. 

“This milestone is important to meet the growing demand for ammonia as shipping fuel, as well as incentives needed to enable ship operators and owners to switch from high-emitting, but cheaper fuels, to the low-emission alternative of ammonia,” Yara said on its website. 

“Demand seems to gain momentum in Norway as ENOVA, which manages the Norwegian Climate and Energy fund on behalf of the government, is planning ammonia grant tenders for both ammonia powered ships and ammonia infrastructure in 2024.”

There are multiple newbuilding projects in the pipeline, and ongoing ammonia-powered Platform Supply Vessels (PSV) tender processes.

Yara Clean Ammonia, Azane and Fjord Base will now commence work with their project partners to obtain a permit with the local municipality before a final investment decision.

Magnus Ankarstrand, President 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 Projects& Products, Azane, said:“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, Fjord Base, said: “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 minimising their carbon footprint.”

“The development of an ammonia bunkering terminal marks a significant step forward in this endeavour, bolstering our competitive edge at Fjord Base and showcasing our dedication to sustainability.”

Photo credit: Yara Clean Ammonia
Published: 26 March 2024