Mabanaft and Hapag-Lloyd sign MoU for ammonia as bunker fuel to Germany and US ports

HOUSTON (ICIS)–Energy firm Mabanaft and shipping company Hapag-Lloyd have signed a memorandum of understanding (MoU) to evaluate options for the supply of ammonia as bunker fuel at the Port of Hamburg in Germany and also to the Port of Houston in the US state of Texas.

The companies said they will evaluate the commercial, technical, and regulatory requirements and engage with all relevant stakeholders as part of this initiative in Germany and that a similar assessment will be done for Houston.

Mabanaft said it is in the process of developing infrastructure in Hamburg for import and supply of clean ammonia for a lead customer, along with a larger infrastructure investment program to create a platform for low carbon fuel alternatives.

In November, Mabanaft announced the intention to build Germany’s first large-scale, green energy import terminal in Hamburg, together with project partner Air Products. The project is an important step towards the development of a green ammonia import and distribution infrastructure in Hamburg.

Targeted to provide hydrogen to Germany in 2026, the planned import terminal is to be located at Mabanaft’s existing Blumensand terminal in the port.

Mabanaft is also a shareholder in Gulf Coast Ammonia LLC (GCA), a world-scale ammonia production facility in Texas City, Texas, scheduled for commissioning by mid-2023.

“We play an active role in shaping the energy transition and offer our customers innovative fuel solutions to reduce greenhouse gas emissions,” said Volker Ebeling, Mabanaft  senior vice president of New Energy, Chemicals and Gas.

“In shipping, we intend to support that transition for example through investments in ammonia production and the development of related supply infrastructure.”

Hapag-Lloyd said as part of its commitment to sustainability, the company is looking for reliable suppliers of zero-carbon fuels in key strategic ports.

“When produced with renewable energy, ammonia is a promising sustainable fuel that may become an integral part of the energy mix of future maritime shipping. We look forward to this partnership with Mabanaft and to jointly making progress on the industry’s path towards climate neutrality” says Jan Christensen, Hapag-Lloyd senior director Global Fuel Purchasing.