Trafigura targets six vessels on green ammonia by 2030

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Trafigura's Rasmus Bach Nielsen, Global Head of Shipping Decarbonisation, and Jose Maria Larocca, Co-head of Oil Trading, visiting MAN Energy Solutions' test engine in Copenhagen with Brian Østergaard Sørensen, Vice President, Head of R&D Two-Stroke, earl

Under the plans announced on 4 November, Trafigura has committed to own and operate six ammonia-carrier vessels which will be converted to use low-carbon ammonia as their primary fuel source by 2030, if technically feasible. This is equivalent to around 18% of the company’s own fleet.

The dual-fuel vessels will be capable of operating on low-carbon ammonia once MAN Energy Solutions’ two-stroke ammonia engine becomes commercially available. A Trafigura representative told The Motorship that a final decision on whether to convert vessels powered by existing MAN ES engines to ammonia-fuelled propulsion or to order newbuildings with ammonia engines had yet to be taken.

The vessels would operate on low-carbon ammonia included both green ammonia (produced from renewable electricity) and blue ammonia (produced via the carbon capture route). Trafigura is cosponsoring the development of MAN Energy Solutions ammonia-fuelled engine.

Trafigura has experience in handling grey ammonia as a commodity, and is collaborating with Japanese trading house Itochu on market opportunities in the growing ammonia trade space.

Trafigura agreed to collaborate with ammonia producer Yara International in June 2021 regarding the development of ammonia as a marine fuel. The trading house is also exploring possibilities around the development of renewable ammonia fuel infrastructure.

The announcement was made in the context of the launch of the First Movers Coalition at the COP26 conference in Glasgow. Trafigura is one of the 25 founder members.