Sembcorp Marine (SembMarine)’s wholly owned subsidiary LMG Marin has landed a contract from Grieg Maritime’s Grieg Edge to design the first green ammonia-fuelled tanker, the MS Green Ammonia, the Singapore-listed company said in a filing to SGX Friday.
The zero-emission vessel, which will be powered by green ammonia, will transport and distribute green ammonia fuel from a production facility in Berlevag, Noraway, to Svalbard, which is a Norwegian archipelago between Norway and the North Pole, SembMarine said.
The shipments, which will start from 2024, will be used to replace coal-fired power, the filing said.
Green ammonia is produced using hydrogen derived from water electrolysis, powered by renewable energy sources, such as wind and solar, the filing said. Conventional methods of producing ammonia, called grey ammonia, mix hydrogen and atmospheric nitrogen under pressure, with every tonne of grey ammonia produced also producing two tonnes of carbon dioxide, the filing said.
Torbjørn Bringedal, LMG Marin’s managing director, said Grieg Edge is at the forefront of developing new, sustainability-focused business in the maritime industry.
“We are excited in pursuing new green technologies and making it a future reality,” he said in the statement.
Wong Weng Sun, SembMarine’s president and CEO, added the project would leverage the company’s “leverage the group’s integrated marine and offshore engineering capabilities, deep R&D domain expertise and technological bench strength in designing and building high-performance and specialised vessels.”
SembMarine said it has been working since 2015 on a strategy shift to increase its focus on renewables and other green products. The company is a founding member of the Global Centre for Maritime Decarbonisation (GCMD).
The company has been contributing to a GCMD-backed study to define safety and operational envelopes for an ammonia-bunkering pilot in Singapore, the filing said.