Yara Growth Ventures AS, the venture investment arm of Oslo-based Yara International ASA, and London-based shipowner Navigator Holdings Ltd. on Oct. 25 announced they have led an investment round of $5.7 million in Azane Fuel Solutions AS, an ammonia bunkering startup, which plans to commence construction of its first bunkering unit in 2024 in Norway. Each company acquired a 14.5% interest in the company.
Azane, a joint venture between ECONNECT Energy AS and Amon Maritime AS, both of Norway, was founded in 2020 as a company that develops proprietary technology and services for ammonia fuel handling to facilitate the transition to green fuels for shipping.
The investment made by Yara and Navigator is expected to enable Azane to begin construction of its first bunkering unit. The parties anticipate that the commencement of operations of the bunkering units will begin in Scandinavia in 2025.
Azane is a commercial partner of Yara Clean Ammonia, who expects to provide clean ammonia to be stored in Azane’s bunkering units once operational.
“Currently ammonia fuel bunkering does not exist,” said Stian Nygaard, Investment Director, Yara Growth Ventures, who is joining Azane’s Board of Directors. “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.”
The parties said the total addressable market for ammonia powered ships is estimated to equal the entire deep sea shipping fleet of 100,000 vessels worldwide, which over time is expected to transition to zero-carbon fuels. Currently, the world of ocean shipping accounts for approximately 3% of global emissions.
Navigator is the owner and operator of the world’s largest fleet of Handysize liquefied gas carriers and a global leader in the seaborne transportation services of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas (LPG), and ammonia.
Navigator owns a 50% share, through a joint venture, in an ethylene export marine terminal at Morgan’s Point, Texas, on the Houston Ship Channel. Navigator’s fleet now consists of 56 semi- or fully refrigerated liquefied gas carriers, 25 of which are ethylene and ethane capable.