Construction Starts on First Short-Sea, Ammonia-Fueled Containership

Nearly two years after the project was unveiled, construction started today in China for what is likely to become the world’s first ammonia-fueled containership. The project, which is being led by CMB.TECH, as part of its efforts to accelerate the transition in the shipping industry, will launch a vessel that they report will transform short-sea shipping and demonstrate the potential of ammonia as a low-emission fuel.

The vessel, which is named Yara Eyde, is being built in China the Qingdao Yangfang Shipbuilding and will be a 1,400 TEU ice-class containership optimized for operations between Norway and Germany. The vessel will be owned by Delphis, the container division of CMB.TECH and operated by NCL Oslofjord, a joint venture between North Sea Container Line and Yara Clean Ammonia. The Norwegian Government, through its Enova Investment Fund, provided approximately $3.6 million in grants to the project.

Today, September 5, marked the first day of steel cutting for the vessel. The companies previously said delivery is scheduled for mid-2026.

“This is more than the start of a ship – it is the start of a new chapter in maritime decarbonization,” said Hans Olav Raen, CEO of Yara Clean Ammonia. “Yara Eyde embodies our ambition to make low-emission ammonia a reality for shipping and to inspire the industry toward solutions that reduce emissions.”

So far, ammonia-fueled shipping has mostly been a few pilot projects as the leading engine manufacturers work to perfect their first offerings and complete certification. The industry is also awaiting the finalization of regulations and is still working to develop the fueling infrastructure and safety protocols for ammonia, which is highly toxic.

The potential for ammonia as one of the fuels to address decarbonization, however, has created strong anticipation in the shipping industry. While there are only three vessels currently in service with ammonia as their primary fuel, an offshore supply vessel and two tugboats, there are now 39 ammonia-fueled vessels on order for delivery over the next four years, according to data from DNV.

Yara Eyde is set to operate on a route between Oslo, Porsgrunn, Bremerhaven, and Rotterdam. NCL will manage the commercial operations. Yara Clean Ammonia will deliver ammonia fuel to the vessel, while Yara International has entered into a contract for shipping containers between Yara’s fertilizer plant in Porsgrunn, Norway, and Hamburg and Bremerhaven in Germany.

In addition to being a demonstration of the potential for ammonia-fueled operations, the goal is to use the ship to drive investment and build industry support for the infrastructure and adoption of ammonia technology.

“Yara, NCL, and CMB.TECH are walking the talk to decarbonise shipping by combining our know-how on clean ammonia, operational excellence in the North Sea, and state-of-the-art low-carbon ships,” said Alexander Saverys, CEO of CMB.TECH in 2023, announcing the project. “We want to prove to the world that we can decarbonise today to navigate tomorrow.”