Höegh Autoliners signs offtake agreement with North Ammonia

Norwegian logistics company Höegh Autoliners will procure green ammonia from North Ammonia's green hydrogen and ammonia facility at Arendal Port in Norway. 

PHOTO: Virtual blueprint of North Ammonia’s green ammonia plant at Arendal Port, Norway. North Ammonia

The agreement entails “supply, distribution, delivery, and consumption of green ammonia," says Höegh Autoliners.

Norwegian green fuel producer North Ammonia said that the plant’s location will also allow for green ammonia bunkering operations.

The first phase of the Arendal plant will be operational in 2027 with a 100,000 mt/year production capacity, according to North Ammonia. The capacity will be expanded as demand for green ammonia rises.

Green hydrogen will be produced at the plant using hydropower and be combined with nitrogen to produce green ammonia. The combustion of green ammonia does not release carbon dioxide, but it does emit nitrous oxides.

PHOTO: Concept design of ammonia-fuelled dual-fuel Aurora class vessel. Höegh Autoliners.

Powering green ambitions

Höegh Autoliners intends to use green ammonia as a cleaner alternative to conventional fuels to minimise carbon emissions and fuel its fleet of ammonia-ready vessels.

It has ordered eight ammonia-ready dual-fuel Pure Car, Truck Carriers (PCTCs) to be delivered from 2024, with two being delivered every six months.

It also has a self-imposed goal of using green ammonia for at least 5% of its deep-sea operations and consuming at least 100,000 mt/year of green ammonia by 2030 within its fleet. 

“The fact that green ammonia is becoming a totally viable maritime fuel is a game-changer for our industry. We believe it will set the standard for others to follow. I thought this development would be achievable in 10 years’ time. But technology is moving faster than expected and the future is here,” said Sebjørn Dahl, chief operating officer of Höegh Autoliners.

North Ammonia’s chief executive Vidar Lundberg said that “As an infrastructure developer, we hope that this collaboration will inspire other companies in the industry to develop and order environmentally friendly vessels."

By Konica Bhatt

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