An ammonia bunkering facility planned by Yara Clean Ammonia (YCA) and Norway’s Azane Fuel Solutions at Fjord Base in Florø, Norway, has secured approval for construction from the Norwegian Directorate for Civil Protection.
The planned terminal consists of a floating stationary barge with a capacity of 1,000 cubic meters, or 650 mt, 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, Yara and Azane said in separate media releases on March 25.
YCA, 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.
“Even though interest in ammonia as a decarbonized shipping fuel is high, the final leg of the journey, from the production plant to the vessel, has been missing,” Yara and Azane said. “Now 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).”
Yara and Azane reached a commercial agreement in 2022 to establish a carbon-free ammonia fuel bunker network in Scandinavia (GM April 1, 2022). Under the agreement, the ammonia bunker terminals would be designed and constructed by Azane and delivered to Yara.
As one of the world’s largest ammonia producers, Yara will use its position to deliver green ammonia to the shipping industry. It has pre-ordered 15 floating bunkering terminals from Azane, which it believes will be sufficient to cover the Scandinavian market.
Demand seems to be gaining momentum in Norway as ENOVA, which manages the Norwegian Climate and Energy fund on behalf of the Norwegian government, is planning ammonia grant tenders for both ammonia-powered ships and ammonia infrastructure in 2024. There are multiple new building projects in the pipeline, as well as ongoing ammonia-powered Platform Supply Vessels (PSV) tender processes.