In a landmark agreement for the maritime industry, Yara Clean Ammonia (YCA), the world’s largest ammonia distributor, has signed a time-charter contract with Nippon Yusen Kabushiki Kaisha (NYK) for an ammonia-fueled medium gas carrier (AFMGC). The vessel, slated for delivery in November 2026, marks a significant step toward reducing carbon emissions in global shipping.
The deal comes after years of collaboration between YCA and NYK, who have been jointly studying the feasibility of an ammonia-fueled gas carrier since 2021. The AFMGC is the preferred vessel type for international ammonia transport and is expected to play a crucial role in the industry’s transition to cleaner fuel sources.
Murali Srinivasan, Senior Vice President of Commercial at Yara Clean Ammonia, emphasized the agreement’s importance in meeting future regulatory requirements and reducing carbon intensity across the supply chain. “Our successful collaboration with NYK enables us not only to comply with future regulations related to CO2 emissions from sea-going vessels but also helps us to ensure that our customers can receive carbon-intensity compliant clean ammonia throughout our supply chain from well to wake,” said Srinivasan.
The new vessel is expected to significantly curb greenhouse gas (GHG) emissions in marine transportation, contributing to the development of a more sustainable ammonia supply chain. With ammonia gaining traction as an alternative marine fuel and a key component in power generation, the need for low-emission transport solutions has never been greater.
Csaba Laszlo, Vice President of Ammonia Trade & Shipping at Yara Clean Ammonia, highlighted the benefits of the deal: “I am pleased to have concluded this charterparty which will give us great flexibility to manage carbon emissions and product carbon intensity. I look forward to a successful cooperation in operating this new technology to its best efficiency.”
NYK has been actively pursuing decarbonization strategies, aligning with its commitment to achieving net-zero GHG emissions by 2050. In November 2023, the company released its ‘NYK Group Decarbonization Story,’ outlining its approach to integrating alternative fuels into its fleet. Hironobu Watanabe, Managing Executive Officer at NYK, expressed confidence in the AFMGC’s role in meeting these goals. “We have been developing an ammonia-fueled vessel because we believe that using alternative fuels, especially ammonia, is essential to reaching the net-zero goal. We are delighted to have concluded this time-charter contract with Yara Clean Ammonia, the world’s largest ammonia player, which has highly evaluated the AFMGC we develop with our partner companies as a next-gen fueled vessel.”
The vessel itself will have a capacity of 40,000m³, measuring 180 meters in length with a breadth of 32 meters and a molded depth of 18.45 meters. It will sail under the Japanese flag, further reinforcing Japan’s commitment to clean energy solutions in shipping.
Yara Clean Ammonia operates the largest global ammonia network, with 15 ships and access to 18 ammonia terminals worldwide. The company has been actively investing in low-emission fuel solutions for shipping, power generation, and industrial applications, strengthening its position in the evolving ammonia market. In 2024, YCA reported revenues of $1.8 billion and an EBITDA of $117 million, highlighting its financial strength in driving clean ammonia solutions.
As demand for ammonia as a marine fuel and industrial energy source continues to grow, the YCA-NYK partnership signals a broader industry shift toward more sustainable maritime operations. This contract sets a precedent for future collaborations aimed at integrating alternative fuels into commercial shipping, ensuring a more sustainable supply chain for years to come.
