BSM and the Norwegian ammonia specialist Amon Maritime have created a 50/50 joint venture to offer ship management services for the Norwegian market, specialising in ammonia-powered vessels, but open to all types of ships. Announced during Nor-Shipping in Oslo, Ula Ship Management will be based in Sandefjord in southern Norway.

Nick Topham, Managing Director of BSM Deutschland, says: “The cooperation with Amon Maritime is a milestone in the further development of our ship management services. Ula Ship Management promotes accessing the strong Norwegian market with its diversely positioned ship owners. At the same time, we are consciously entering the operation of ammonia-powered vessels. With Amon Maritime, we have a partner at our side who has extensive expertise in this innovative and sustainable field. Our experience is an excellent match.”

Contract signing with André Risholm (left), Founder & CEO Amon Maritime, and Nick Topham, Managing Director of BSM Deutschland © BSM

“A new Force in the Norwegian Third-Party Management Market”

André Risholm, Founder and CEO of green shipping start-up Amon Maritime, says, “We were looking for a long-term, high-quality partner with international scale to build a new ship management company in Norway. The company will manage Amon Maritime vessels and be a new competitive force in the Norwegian third-party management market for complex vessels. After a long and thorough partner search, we found the perfect match with BSM. We look forward to building Ula Ship Management into a successful company together with our German partners.”

BSM has many years of experience in the seaborne transport of liquid gases, including ammonia. BSM is engaged in ammonia shipping though various managed gas carriers transporting ammonia over the past years. In addition, BSM has an extensive track record in operating vessels using gas as fuel. Today, BSM is the largest third-party manager of vessels with LNG dual-fuel engines with specialised technical and operational knowhow in gas fuel, including the development of in-house crew training approaches. This is a massive advantage for the development of ammonia fuelling solutions.

Amon Maritime intends to launch a fleet of innovative ammonia-powered ships, which will be managed by Ula Ship Management. © Amon Maritime

“Ammonia has a Place as a future Fuel within the Shipping Industry”

Ula Ship Management will draw on the global capabilities of BSM's German office in Hamburg, including strong systems for accounting and procurement, and the broad technical and operations team. “We’re fully committed to this project. We’re looking forward to learning an awful lot about ammonia as a fuel. Carrying it and using it are two completely different things,” says Topham. “I’m fully convinced that ammonia has a place as a future fuel within the shipping industry.”

Amon Maritime has been developing ship projects, technology, and bunkering solutions, with a sole focus on ammonia fuel, since 2019. The company is engaged in several vessel niches, and the development is now sufficiently mature to close in on firm shipbuilding contracts during 2022. The establishment of Ula Ship Management together with BSM is part of building all the necessary capabilities to pioneer the safe use of ammonia fuel – leading the green shift in shipping.

Focus On

Why is Ammonia the next big Thing in Shipping?

99% of the world's merchant fleet burns conventional fuels. Since the beginning of 2020, the focus of the new MARPOL regulations has been on reducing SOx and NOx emissions through low-sulphur marine fuels and diesel. But more and more ships with “green” propulsion systems are coming onto the market, as the order books show. One in nine newbuildings is powered by alternative fuels – mainly large ships. LNG as a fuel minimises SOx and NOx emissions, but fuels like ammonia, hydrogen and biomethanol are alternatives for the next step in emissions reduction: reducing CO2 emissions, the predominant greenhouse gas.

In this context, ammonia has undeniable advantages that could contribute to the creation of a sustainable maritime industry. The chemical compound consists of one nitrogen atom and three hydrogen atoms. It can be produced ”green“ from renewable sources such as wind, sun or water. Since it is not a carbon compound, it burns carbon-free.

Moreover, unlike LNG, ammonia solutions build on established technologies and infrastructure. Ammonia is produced and handled on a large scale as fertiliser. Therefore, it can be easily handled in port terminals, which helps to significantly shorten the path to sustainability.

Compared to hydrogen, the storage of ammonia is relatively simple as ammonia only needs to be cooled to minus 33 degrees Celsius to become liquid, not minus 253 degrees. Alternatively, it can also be compressed. At a temperature of 20 degrees Celsius, 9 bar is enough for ammonia to become liquid. This makes the transport and storage easier and more cost-efficient. It also has a higher energy density and is safer in terms of explosiveness at the same time.

The big advantage of ammonia compared to biomethanol is that ammonia is carbon-free, whereas biomethanol can never be better than “carbon neutral”. And again, biomethanol does not yet have as mature a well-established, large-scale production and port infrastructure as ammonia

Ammonia can not only be burned in engines but can also be used as a hydrogen carrier to power a fuel cell. For this purpose, the hydrogen is largely separated from the ammonia. Pure nitrogen escapes into the air or is fed into the fuel cell together with the hydrogen.

Wärtsilä and MAN, the largest engine manufacturers in the industry, are working on providing ammonia-powered engines for the maritime industry. MAN plans to deliver the first CO2 emissions-free two-stroke engine powered by ammonia in 2024. All in all, there is no doubt that ammonia will become an important carbon-free energy source and make an important contribution to the decarbonisation of the maritime sector.

Nick Topham

Managing Director (BSM Germany)

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