The companies plan to develop ammonia bunkering projects in and around the Port of Hamburg and the Port of Houston, Texas. [Image: Mabanaft]

By Shardul Sharma

Mabanaft and Hapag-Lloyd have signed a memorandum of understanding to evaluate options for the supply of ammonia as bunker fuel to Hapag-Lloyd in and around the Port of Hamburg, Germany and also the Port of Houston, Texas, Mabanaft said on January 25.

In the first phase, the companies will assess the viability of and the options for the safe handling of clean ammonia as a bunker fuel in and around the Port of Hamburg. The companies will evaluate the commercial, technical, and regulatory requirements and engage with all relevant stakeholders as part of this initiative. In a second step, a similar assessment will be done for the Port of Houston.

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

In November last year, Mabanaft announced the intention to build Germany’s first large-scale, green energy import terminal in Hamburg, together with project partner Air Products.

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. Furthermore, Mabanaft is a shareholder in Gulf Coast Ammonia, an 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, senior vice president of new energy, chemicals & gas at Mabanaft. “In shipping, we intend to support that transition for example through investments in ammonia production and the development of related supply infrastructure."