Enaex SA, a Chilean ammonium nitrate producer, and NYK Bulk & Projects Carriers Ltd. (NBP), a member of the Tokyo-based NYK Group, on Feb. 21 announced the signing of a Memorandum of Understanding (MOU) to jointly research the feasibility of supplying low-carbon ammonia to ammonia-fueled ships.
NBP will build 10-15 ammonia-fueled Handymax bulkers in the late 2020s and beyond to transport copper products from Chile to the Far East for Corporación Nacional del Cobre de Chile (CODELCO), a world-leading copper producer. The first of the ships is expected to arrive in 2027.
Enaex and NBP will work out the details to supply low-carbon ammonia to the vessels at their Mejillones ammonia terminal in the Antofagasta Region of northern Chile. Enaex said it has already reduced CO2 emissions more than 90% in its production process.
“Going further along this path, we are now focused on collaborating in the reduction of emissions in the transportation of raw materials,” said Juan Andrés Errázuriz, Enaex CEO. “Our company already has experience in the transport and production of low-carbon ammonia. At our Cachimayo plant in Peru, we are producing green ammonia and we have also imported blue ammonia from the United States.”
According to the new carbon neutrality goals established by the International Maritime Organization, the shipping industry is projected to be one of the largest consumers of low-carbon ammonia in the future.