Yara Clean Ammonia (YCA), the world’s largest ammonia distributor, and Nippon Yusen Kabushiki Kaisha (NYK), a leading global shipping company, have signed the world's first time-charter contract for an ammonia-fueled medium gas carrier (AFMGC). The gas carrier is slated for delivery in November 2026.

The vessel itself is a 40,000m³ Ammonia-Fueled Medium Gas Carrier, measuring 180 meters in length and 32 meters in breadth, flying the Japanese flag. Its delivery in November 2026 will mark the beginning of a new era in clean ammonia shipping.

The agreement, finalized in a meeting between senior executives from both companies, signifies a major milestone in the joint efforts of YCA and NYK to explore the practical application of ammonia-fueled vessels. Since 2021, the companies have been collaborating on research and development, culminating in this landmark contract for an AFMGC, the workhorse of international ammonia transport.

The use of an AFMGC is poised to significantly reduce greenhouse gas (GHG) emissions from shipping, a sector that contributes substantially to global emissions. As demand for ammonia grows in sectors like power generation and marine fuel, this development offers a more environmentally friendly transportation solution, fostering the development of a robust and sustainable ammonia supply chain.

“This successful collaboration with NYK allows us to not only meet future CO2 emission regulations for maritime vessels but also ensures our customers receive carbon-intensity compliant clean ammonia throughout our supply chain, from production to delivery,” stated Murali Srinivasan, Senior Vice President Commercial at Yara Clean Ammonia. This sentiment was echoed by Csaba Laszlo, Vice President Ammonia Trade & Shipping at YCA, who emphasized the contract's flexibility in managing carbon emissions and product carbon intensity, expressing anticipation for a successful partnership in optimizing the new technology's efficiency.

NYK, committed to achieving net-zero GHG emissions by 2050, views alternative fuels, particularly ammonia, as crucial to reaching this ambitious goal. "We are delighted to have concluded this time-charter contract with Yara Clean Ammonia, the world’s largest ammonia player, who has recognized the value of the AFMGC we are developing with our partners," said Hironobu Watanabe, Managing Executive Officer at NYK. He further emphasized NYK's commitment to collaborating with Yara on establishing a comprehensive ammonia supply chain, encompassing various aspects beyond maritime transport.

This initiative highlights the crucial role of collaboration in driving innovation and developing sustainable solutions for the maritime industry. Yara Clean Ammonia, leveraging its extensive experience in ammonia production, logistics, and trade, is uniquely positioned to lead the development of the clean ammonia market.