One of Europe’s largest green ammonia facilities accelerates the green shipping transition through new logistics and offtake collaboration agreement with Monjasa.
On 6 February 2023, Monjasa and HØST PtX Esbjerg have signed a Commercial Collaboration Agreement (CCA) on logistics services and offtake of green ammonia for the maritime sector. According to the CCA, Monjasa will provide logistics services that will enable distribution of green ammonia from HØST PtX Esbjerg, which is a Danish power-to-ammonia project managed by Copenhagen Infrastructure Partners (CIP).
As a maritime logistics partner, Monjasa has the possibility to provide the offtake partners of HØST PtX Esbjerg with green ammonia. Furthermore, a volume of the planned production will be reserved for Monjasa. This secures a strong position for Monjasa in Northwest Europe, as the market for green marine fuels will expand in the future, but also for HØST PtX Esbjerg as both parties will significantly increase their reach and ability to market green ammonia to the maritime sector.
David Dupont-Mouritzen, Project Director, HØST PtX Esbjerg, shares:
“This is a decisive step towards realising tomorrow’s supply chain and creating the green transition within the maritime sector. The cooperation between Monjasa and HØST PtX Esbjerg will allow us to deliver green ammonia on the preferred location of our customers, and it will help accelerate the green transformation of an industry that has a considerable potential. We are taking some major steps at this moment, and hopefully both national and European regulation and policy frameworks will support this. The green transition in the maritime sector is on the verge of happening, and we wish to maintain the progress with the combined strengths of our partners.”
Jesper Nielsen, Group Responsibility Director, Monjasa, shares:
“We are excited to embark on this journey with HØST PtX Esbjerg and Copenhagen Infrastructure Partners because it shows shipowners around the world that green ammonia is becoming available as a long-term marine fuel option. At Monjasa, our strengths lie in maritime logistics, and we are determined to become an enabler of alternative fuels worldwide thanks to our unique industry position between fuel producers and end users. Only by being curious and learning from each other will we succeed in decarbonising shipping and we have a very strong partner in CIP.”
The chicken-and-egg challenge
Green ammonia is the cleanest of alternative fuel production methods for the maritime industry, but also represents the classic chicken-and-egg challenge. While the technology is available, the regulatory framework and infrastructure for distribution still need to be developed and new ammonia-fuelled engines are expected to be commercially available in 2024 with testing commencing this year. So, should the ship owners drive the demand by building new ships using green fuel technology or must the supply chain develop to support the transition? For HØST PtX Esbjerg and Monjasa it is crucial to take the first steps and establish ambitious partnerships that also serve as a pull factor towards the maritime industry and ultimately will help secure more ammonia-fuelled newbuilds.
A favourable distribution route
The HØST PtX Esbjerg production facility is located in Southern Denmark close to the port of Esbjerg, from where the ammonia will be distributed.
The Port of Esbjerg provides access to major European ports, e.g., Hamburg and Rotterdam, which ensures a favourable distribution route for the green ammonia throughout Europe. In addition, the port ranks as Europe’s largest base port for shipment of offshore wind turbines.