Yara Growth Ventures and Navigator Holdings have jointly invested 5.4 million EUR (approximately 5.7 million USD) in Azane Fuel Solutions AS, a pioneering ammonia bunkering startup. This strategic investment marks a significant step towards realizing the world’s first ammonia bunkering network.
Azane Fuel Solutions, a collaboration between ECONNECT Energy AS and Amon Maritime AS in Norway, emerged in 2020 as a company dedicated to developing cutting-edge technology and services for ammonia fuel handling. Their aim is to accelerate the shift towards eco-friendly fuels within the shipping industry.
Subject to standard conditions, Azane plans to construct 15 bunkering units, with Yara Clean Ammonia already placing orders for all 15. The infusion of capital from Yara and Navigator will kickstart the construction of the initial bunkering unit in Norway, setting the stage for a green revolution in maritime transportation.
Anticipated to commence operations in Scandinavia by 2025, the bunkering units are poised to revolutionize the maritime industry. The potential market for ammonia-powered vessels is vast, encompassing the entirety of the 100,000-strong deep-sea shipping fleet worldwide. This transition to zero-carbon fuels is critical, considering that the maritime sector currently contributes about 3% of global emissions.
Yara Clean Ammonia is slated to be a key partner of Azane, supplying clean ammonia for storage once the bunkering units are operational.
Stian Nygaard, Investment Director at Yara Growth Ventures, expressed, “Currently ammonia fuel bunkering does not exist. With this investment it is expected to become a reality in a year, starting in Scandinavia. This is anticipated to be a huge milestone for reducing emissions from the shipping industry. By enabling Azane to be the first mover on providing this key part of the infrastructure, our goal is to fill a gap in the ammonia chain needed for fueling ships.”
Mads Peter Zacho, CEO of Navigator, emphasized the vital role of green ammonia in the future of carbon-free shipping. He noted, “Global ammonia demand is expected to triple by 2050, with a significant part being for ship fuel.”
This substantial investment not only signals Navigator’s commitment to sustainability within its own operations, but also reflects its dedication to supporting and expediting industry-wide transition efforts. The partnership with Yara and Azane is set to strengthen relationships and drive innovation.
André Risholm, Chairman of Azane, highlighted the strength of the partnership with Yara and Navigator, stating, “It will be a great strength for our company to partner with two of the leading ammonia players in the world, one from industry and another one from gas shipping, both entering as strategic investors and joining the board to help build the company. The fresh funds will help accelerate the company’s growth ambitions in Scandinavia and internationally. As a first mover, Azane’s bunkering solutions will enable ship owners across the world to make the transition to carbon free shipping by showcasing full scale commercial bunkering projects.”
