In a First, Norway's Equinor To Use Ammonia for Upstream Supply Vessels

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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Norwegian energy company Equinor (NYSE:EQNR) (Stavanger, Norway) said Monday it was getting ahead of expected regulations on maritime fuels by signing a contract for an ammonia debut as a fuel for an upstream supply vessel.

Though the details need ironing out, Equinor said the Norwegian government is working on new standards that would outline plans for a zero-carbon scenario for supply vessels starting in 2029. Ørjan Kvelvane, a senior vice president for joint operations support at Equinor, said there are many uncertainties associated with the emerging technologies of the so-called energy transition.

"At the same time, scaling up the use of operational technology to enable the necessary transformation is urgent," he said. "Cooperation with the authorities and competent suppliers on phasing in recent technology is essential to achieving the emission targets we have set."

To that end, Equinor said it signed a contract with Norwegian shipping company Eidesvik Offshore to convert the supply vessel Viking Energy to run on ammonia.

Ammonia, made up of four hydrogen atoms and one nitrogen, is a main component of fertilizers for the agriculture sector. It's also finding a home in transportation because of its chemical make-up. Rich in hydrogen, a potent energy carrier, but with no carbon atoms, ammonia is essentially a zero-carbon fuel.

However, research from Princeton University found that, if handled improperly, ammonia can lead to the release of nitrogen oxides, which contributes to smog and acid rain.

The U.N.-backed International Maritime Organization (IMO) has called on shippers to reduce harmful emissions, most recently calling for a cut in sulfur emissions. Most shippers can lower their emissions by using an onboard device called a scrubber, which washes the vessel's exhaust, or by burning cleaner fuels such as ammonia or natural gas, which is comprised mostly of methane (CH4).

Dutch multinational commodity trading company Vitol (Rotterdam, Netherlands) already introduced its Marine Future bunker vessel, which will supply biofuel blends to shippers off Singapore, among the world's busiest port regions.

Vitol added that it was on pace to cut its carbon emissions 40%, compared to 2008 levels, this year. Utilizing a wide range of cleaner alternatives, the company said that no single fuel can decarbonize the shipping industry.

Equinor, for its part, said Viking Energy would likely cut emissions by 70% compared to regular operations. The vessel had run on liquefied natural gas (LNG).

"With this contract, we will, in collaboration with Eidesvik Offshore, employ a new low-emission technology," said Equinor's Kvelvane. "We strongly believe in the use of ammonia as a fuel on our supply vessels."

Equinor expects delivery of Viking Energy by 2026. The conversion from LNG will be done by Wartsila, a Finnish services company catering to the marine and energy markets.

Norway in general is taking a balanced approach to the energy transition. It's one of the main suppliers of crude oil and natural gas to the European economy, while powering its own economy on renewable energy.

The Norwegian Offshore Directorate (NOD), the nation's energy regulator, considers regional production to be low carbon, with as much as 40% of the offshore installations targeted for electrification over diesel. Emissions of carbon dioxide from production average 15 pounds per barrel, relative to a global average of about 37 pounds.

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