Navigator Gas and Attis Clean Energy Fund US Gulf Clean Ammonia Facility

Navigator Holdings Ltd., which operates the largest fleet of handysize liquefied gas carriers globally, has announced a co-investment partnership with Attis Clean Energy (“Attis”), the lead investor, in Ten08 Energy LLC (“Ten08” or “Project”), a clean ammonia development company. This investment was initially disclosed on May 15, 2024.

Ten08 is working on a large-scale facility on the Gulf Coast of Texas to produce hybrid blue and green ammonia for export. The goal is to create the most cost-effective ammonia to support the decarbonization of the power, shipping, fertilizer, and chemicals sectors. The initial phase, which will produce 1.4 million metric tonnes of ultra-low carbon ammonia annually, is anticipated to begin operations in late 2029 or early 2030.

Navigator's $2.5 million contribution complements the development funding provided by lead investor Attis, which made its initial investment in May and is collaborating with Navigator to finance the project until the Final Investment Decision (FID). In exchange for its initial investment, Navigator has secured the option to invest up to $100 million in preferred equity at FID for the construction of the terminal and export infrastructure, with potential additional investments for future expansions.

Navigator and Ten08 plan to provide a comprehensive service that includes US-based clean ammonia production and its international transportation by ammonia-powered gas carriers to Ten08’s clients in Europe and Asia.

Clean ammonia offers a solution for decarbonizing the fertilizer and chemical industries and serves as a low-carbon fuel for both the power and shipping sectors. In power generation, the use of 100% ammonia-fueled gas turbines and engines can enable low-carbon electricity production from clean ammonia. This new demand for ammonia is projected to triple current global production. In the shipping industry, which contributes 3% of global GHG emissions, clean ammonia is expected to meet about 46% of fuel needs by 2050, according to Lloyd’s Register. The competitive price and scalability of blue ammonia make it a promising fuel option for the shipping sector to significantly cut GHG emissions, especially in light of increasing pressures from the IMO and EU regulations.

Mads Peter Zacho, CEO of Navigator, remarked, “This investment highlights our dedication to expanding through energy infrastructure projects and significantly enhances our ammonia shipping operations. Clean ammonia is essential for advancing the energy transition in both power generation and emissions-free shipping, and the Ten08 project will be pivotal in advancing the clean ammonia industry. With this investment, we anticipate deepening our collaborations with a wide range of customers and partners globally.”

Jean Perarnaud, CEO of Ten08, said, “We are excited to have Navigator join us as a strategic investor. Their partnership allows Ten08 to provide a comprehensive solution for delivering clean ammonia to our customers. Additionally, transporting Ten08’s ammonia using ammonia-fueled gas carriers is a key element of our strategy to lead the industry in achieving low well-to-wake carbon intensity.”