MOL has inked a time charter contract for the ammonia carrier Green Pioneer with Yara Clean Ammonia Switzerland, an affiliate of Yara International ASA, the world's largest nitrogen fertilizer manufacturer.

Delivered on December 25, 2023, the Green Pioneer, a vessel constructed in 2010, is poised to play a pivotal role in the transportation of ammonia, primarily in the Pacific region. While ammonia traditionally serves as a key raw material for fertilizers, its anticipated surge in demand stems from its emerging role as a next-generation clean energy source, notably for applications like mixed burning in coal-fired power plants and its use as a carbon dioxide-free hydrogen carrier when burned.

The time charter agreement between MOL and Yara Clean Ammonia Switzerland signifies a significant milestone in their collaborative efforts. The two entities have been collaborating since the signing of a memorandum of understanding in 2022, focused on decarbonization projects, including the ammonia sector. This recent charter contract stands as a tangible outcome of their ongoing commitment to building a sustainable future. Both companies harbor intentions to establish a lasting partnership in the clean ammonia sector and actively broaden their business operations to construct a robust ammonia supply chain.

MOL's decision to re-enter the ammonia transport business in 2021 after a hiatus of nearly five years demonstrates its proactive approach to evolving industry trends and aligning with the burgeoning demand for cleaner energy alternatives. The company further supports the ammonia transport sector by endorsing the sector transition strategy titled "Making Net-Zero Ammonia Possible." Spearheaded by the Mission Possible Partnership, this strategy aims to escalate the production of zero-emission ammonia, with potential applications as a clean marine fuel.

In a strategic move in 2022, MOL, alongside compatriot shipbuilders Tsuneishi Shipbuilding and Mitsui E&S Shipbuilding, initiated a collaborative project aimed at developing and constructing an ocean-going liquefied gas carrier fueled by ammonia. The envisioned vessel, a mid-size ammonia/LPG carrier, features a main engine capable of primarily running on ammonia, targeting net zero carbon dioxide emissions during navigation by utilizing a portion of its ammonia cargo as fuel. This forward-looking project aligns with the industry's drive toward sustainable and eco-friendly maritime solutions.

The charter contract for the Green Pioneer represents a tangible step forward in MOL's and Yara's commitment to advancing the clean ammonia sector. As ammonia gains prominence as a versatile and environmentally friendly energy carrier, this collaboration stands as a testament to the maritime industry's proactive stance in aligning with decarbonization goals. The ongoing endeavors of MOL and its partners reflect a broader industry shift toward cleaner and more sustainable maritime practices, reinforcing the importance of strategic collaborations in driving positive change.