The Norwegian Directorate for Civil Protection gave their approval to the construction of the planned ammonia bunkering facility at Fjord Base in Florø, Norway, according to Yara's release.
Yara Clean Ammonia, Azane and Fjord Base have demonstrated how the planned ammonia bunkering terminal can meet the strict safety requirement of the Norwegian Directorate for Civil Protection (DSB).
The planned terminal consists of a floating stationary barge with a capacity of 1000 cubic meters, or 650 tons, of low-emission ammonia. The permit allows for up to 416 operations annually, many of these expected to be bunkering operations for offshore supply vessels that regularly call at Fjord Base in Florø.
The planned terminal is part of Yara Clean Ammonia and Azane’s efforts to make low-emission ammonia a common fuel for shipping. With ammonia’s potential to fully decarbonize the maritime sector, the companies plan to roll out a network of terminals in Scandinavia. This milestone is important to meet the growing demand for ammonia as shipping fuel, as well as incentives needed to enable ship operators and owners to switch from high-emitting, but cheaper fuels, to the low-emission alternative of ammonia. Demand seems to gain momentum in Norway as ENOVA, which manages the Norwegian Climate and Energy fund on behalf of the government, is planning ammonia grant tenders for both ammonia powered ships and ammonia infrastructure in 2024. There are multiple newbuilding projects in the pipeline, and ongoing ammonia-powered Platform Supply Vessels (PSV) tender processes.
Yara Clean Ammonia, Azane and Fjord Base will now commence work with their project partners to obtain a permit with the local municipality before a final investment decision.
Yara Clean Ammonia operates the largest global ammonia network with 15 ships and has, through Yara, access to 18 ammonia terminals and multiple ammonia production and consumption sites across the world. Revenues and EBITDA for the FY 2023 were USD 1,9 billion and USD 101 million respectively.
Azane Fuel Solutions is developing the world's first ammonia bunkering terminals. In collaboration with Yara Clean Ammonia, Azane is preparing, in Scandinavia, the world's first ammonia bunkering network, planned to commence construction in 2024, with the first bunkering operations anticipated to be operational by 2025. This initiative serves as a landmark demonstration of ammonia's potential as a carbon-free, secure, and reliable fuel source for the shipping industry.
Fjord Base is a leading Norwegian supply base, servicing major offshore energy and renewable companies along the Norwegian Continental Shelf.
It is Norway’s largest supply base by area and is located in Florø on Norway’s western coast, handling 2,000 ships per year and 430.000 tons over quay per annum. The business has an established track record over decades of providing critical infrastructure and logistics services to major multi-national energy companies with on- and off-shore operations, such as Equinor and Neptune Energy, on long-term contracts. It is an essential transport base in the Norwegian energy sector.