Navigator Gas Secures $121.8m for Ammonia Fuelled Newbuilds

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Navigator Gas has closed $121.8m in financing for two ammonia fuelled gas carrier newbuilds being developed with Amon Maritime, the New York listed company said on Monday, completing the funding for its six ship newbuilding programme.

The financing covers roughly 70% of the combined $168m contract price for the two vessels, which are priced at about $84m each. The deal matters for the liquefied petroleum gas and ammonia shipping sector because it supports one of the first commercial scale ammonia fuelled carrier projects, a technology seen as critical for cutting maritime emissions in gas trades. The vessels will be able to carry both ammonia and LPG while burning ammonia as fuel, a dual capability that aligns with tightening environmental rules and growing demand for clean ammonia transport.

The two 51,530 cubic metre carriers are under construction at Nantong CIMC Sinopacific Offshore & Engineering in China. Deliveries are scheduled for June and October 2028. Each vessel has also secured a NOK90m ($9m) grant from Enova, the Norwegian state funding agency, reducing the net capital burden on the joint venture.

Navigator Amon Shipping, the project vehicle, is 80% owned by Navigator Gas and 20% by Amon Maritime. The Norwegian partner brings expertise in ammonia fuel systems and low carbon shipping projects.

Yara Clean Ammonia has taken both ships on five year time charters from delivery, the companies said. The contracts will fold the newbuilds into Yara’s existing ammonia shipping network, which includes a fleet of some 15 carriers and access to 18 terminals. The charters provide revenue visibility for Navigator and Amon while linking the vessels to one of the world’s largest clean ammonia producers and distributors.

The financing closes the remaining gap in Navigator’s six ship newbuilding programme. The company said in June that funding had been completed for four vessels, leaving the two Navigator Amon ships as the final pair awaiting financing. With this deal, the entire programme is now fully funded.

Ammonia is emerging as a leading candidate for zero carbon marine fuel because it contains no carbon and can be produced using renewable energy. However, the technology remains at an early commercial stage, with only a handful of ammonia fuelled vessels on order globally. The Navigator Amon project is among the most advanced in the gas carrier segment.

The ships will enter service as the International Maritime Organization’s strengthened carbon intensity rules take full effect and as the European Union’s emissions trading system extends to maritime transport. Ammonia fuelled vessels could offer compliance advantages, though the availability of green ammonia bunkering infrastructure remains limited and will need to expand for the technology to scale.