Maersk Tankers behind order for up to 10 very large ammonia carriers

A Maersk Tankers affiliate and Japanese trader Mitsui & Co. have teamed up to order at least four very large ammonia carriers, the Danish tanker pool operator said Dec. 1, betting on the forecast rising demand for low-carbon methanol during the energy transition.

Maersk said the 93,000-cu m vessels were ordered from South Korea's Hyundai Samho Heavy Industries for delivery from late-2026 with options for an additional six, and that all of them could run on ammonia eventually.

Maersk, a subsidiary of A.P. Moller Holding, did not provide more details on the affiliate but confirmed Mitsui would be a co-investor for the first four ships at least.

"Concrete actions are needed for the tanker industry to progress the energy transition," Maersk Tankers CEO Tina Revsbech said. "We want to play our part in making transportation of clean energy a reality."

Clean hydrogen and its derivative low-carbon ammonia are to become essential for the world's low-carbon transition, pointing to more seaborne trade growth for the commodities in the future, according to Maersk.

S&P Global Commodity Insights analysts have forecast the market for "green ammonia" generated from renewable hydrogen and "blue ammonia" from fossil fuels with carbon capture and storage technology will reach 420 million mt by in 2050 versus a negligible level currently.

Driven by decarbonization requirements of shipping companies, power plants and industrial users, low-carbon ammonia trade volumes will reach 60 million mt/year by 2035 and exceed 160 million mt/year by 2050, according to S&P Global.

Maersk, which will operate the ships, had sold its gas business in 2013 before re-entering gas shipping last year. It currently provides voyage management services to almost 30 very large gas carriers.

VLGCs typically are between 82,000 cu m and 84,000 cu m, but industry players have been seeking to build to larger capacity for ammonia carriers. According to media reports, Greek owner Angelicoussis Group has partnered with Chevron to develop 150,000 cu m ships.

Maersk plans to reach out to low-carbon ammonia producers and users to discuss about how to meet their future transport demand, according to the company.

Ammonia as marine fuel

Separately, Maersk said it was working with MAN Energy Solutions and Hyundai Heavy Industries -- Samho's affiliate -- to make its very large ammonia carriers capable of running on ammonia.

But the company said a decision on whether to obtain ammonia propulsion would be made before the ship deliveries and require "both regulatory and customer support", without elaborating.

Despite its great decarbonization potential for shipping, ammonia is highly toxic and corrosive, and the International Maritime Organization is still developing interim safety guidelines for ammonia-powered vessels.

Exmar LPG has been so far the only company that opted for ammonia propulsion, placing an order for ammonia-capable marine engines from WinGD for installation on two 46,000 cu m LPG carriers under construction at Hyundai Mipo Dockyard, also a Samho affiliate. The ships are to be delivered in early 2026.

Platts, part of S&P Global Commodities Insights, assessed blue ammonia at $706.45/mt on a C&F Northwest Europe basis on Nov. 30. Green ammonia produced on the eastern coast of Canada for delivery into Northwest Europe was last assessed at $758.56/mt on Nov. 27.