Enaex, NYK unit sign MOU to explore low carbon ammonia supply to fuel ships

Chile's Enaex and NYK Bulk & Projects Carriers (NBP) signed a memorandum of understanding in January to research the feasibility of supplying low-carbon ammonia to ammonia-fueled ships, NYK said Feb. 21.

Under the MOU, NBP will build 10-to-15 ammonia-fueled Handymax bulkers in the late 2020s and beyond to transport copper products from Chile to the Far East for Chile's copper producer Corporación Nacional del Cobre de Chile (CODELCO), it said.

In the future, Enaex and NBP will work out details to supply low-carbon ammonia to the vessels at their Mejillones ammonia terminal in the Antofagasta region of northern Chile, it added.

NBP is a member of the NYK Group that announced the group's decarbonization strategy in November 2023, in which it set greenhouse gas reduction targets involving scope one, two and three of the entire group to reach net zero by 2050, its website says.

Enaex is a Chilean ammonium nitrate producer that targets reducing scope one emissions by 30% by 2030, scope two by 40% by 2035 and being net zero by 2050, its website says.

Earlier, NYK, IHI Power Systems and Nippon Kaiji Kyokai were among five firms that signed contracts for the construction of an ammonia-fueled medium gas carrier, the companies said Jan. 25.

Platts assessed Far East Asia blue ammonia at $367.50/mt CFR Feb. 20, down 8% month on month, showed S&P Global Commodity Insights data. Middle East blue ammonia was assessed at $317.10/mt FOB Feb. 20, down 31% on the month.