Construction details for the first ammonia-fueled ammonia carriers for Swiss commodities trading giant Trafigura are almost finalized, and are expected to be among the first medium-sized ammonia-fueled ammonia carriers to be launched in the world.
In May 2024, Trafigura announced that it had signed a contract with HD Korea Shipbuilding & Offshore Engineering (HD KSOE) for the construction of four medium-sized ammonia dual-fuel carriers, at a cost of approximately $71.5 million each, to be built by HD Hyundai Mipo. The order was announced at a time when Trafigura was embarking on the development of alternative fuels and emphasizing the testing of LNG, methanol, LPG and biofuels.
In the latest news, HD Hyundai Mipo has reached a final agreement with Trafigura for dual-fuel propulsion engines for vessels. The first vessel is scheduled to start construction in the second half of 2026 and all four vessels will be delivered by 2028, when they will be able to use ammonia fuel.
As the details are finalized, the specifications of vessels are also changing. The vessel will be 190 meters in length, 30 meters in width, with a cargo hold capacity of 45,000 cubic meters, and can transport ammonia, liquefied petroleum gas and vinyl chloride monomer.
HD Hyundai Mipo emphasizes that ammonia can be stored in pressurized tanks (about 8 bar) or cryogenic tanks (-33°C) without the need for cryogenics, and that the storage density after liquefaction is 1.7 times higher than that of the same volume of liquefied hydrogen (-253°C), making it suitable for large-scale, long-distance transportation and storage of hydrogen.
It is understood that HD Hyundai Mipo received its first order for an ammonia carrier in 2023. In 2024, the shipyard developed a concept design for a gas carrier that was granted Approval-in-Principle (AiP) by Det Norske Veritas (DNV), and developed an “Ammonia Leak Prevention System” to prevent even the smallest amount of ammonia from leaking outside of the containment system. The shipyard has also received design approvals for a zero-carbon electric propulsion system based on ammonia fuel cells, an ammonia-fueled product tanker and an ammonia-fueled feeder container ship.
Trafigura stressed that the company is committed to developing new markets to lead the shipping industry in decarbonization and said it will help develop the low-carbon fuels and vessels needed to decarbonize global shipping.