Navigator Holdings (Navigator Gas), a UK-based owner and operator of the “world’s largest fleet of handysize liquefied natural gas carriers”, has announced a joint investment in clean ammonia developer Ten08 Energy.
Ten08 is developing a large-scale Hybrid plant for the production and export of blue and green ammonia on the Gulf Coast of Texas with the goal of producing the “cheapest” ammonia molecule and thus contributing to the decarbonization of the energy, shipping, fertilizer and chemical industries.
The first phase, consisting of 1.4 million tonnes of ammonia production per year with extremely low carbon emissionsis expected to start operations in late 2029/early 2030.
Navigator’s $2.5 million commitment complements development capital from lead investor Attis, which made its initial investment in May 2024 and is working with Navigator to fund development through to Final Investment Decision (FID). In consideration for its initial investment, Navigator received the option to make a larger investment of up to $100 million in preferred shares at FID for construction of the project’s terminal and export infrastructure, with potential further investment in subsequent expansions.
Navigator and Ten08 intend to offer Ten08’s customers in Europe and Asia an integrated service that includes the production of clean ammonia in the United States combined with the international maritime transportation of the ammonia on ammonia-fueled gas carriers.
Clean ammonia can be used to decarbonize the fertilizer and chemical industries and is also a low-carbon fuel that can be used in both the energy and shipping industries.
The shipping sector currently accounts for 3% of global greenhouse gas emissions and, according to Lloyd’s Register, clean ammonia is expected to meet around 46% of the sector’s fuel needs by 2050. Another study found that green ammonia could meet the fuel needs of over 60% of global shipping by focusing on just the top 10 regional fuel ports.
Blue ammonia’s low price and scalability make it an attractive fuel for the shipping industry. Given the increasing pressure from IMO and EU regulations, it is an important step towards significantly reducing greenhouse gas emissions.
In the energy sector, the development of gas turbines and engines powered by 100% ammonia is paving the way for low-carbon electricity generation from clean ammonia. This new source of ammonia demand is expected to triple current global ammonia production.
“This investment is another example of our commitment to growth through energy infrastructure projects and supports our existing ammonia transportation business in a meaningful way. Clean ammonia is critical to the success of the energy transition for both power generation and carbon-free shipping, and the Ten08 project will play a critical role in the continued development of the clean ammonia industry,” Mads Peter ZachoChief Executive Officer of Navigator, commented.
“We are pleased to welcome Navigator as a strategic investor in Ten08. By partnering with Navigator, Ten08 can offer our customers an integrated solution for the delivery of clean ammonia. In addition, the sea transport of Ten08’s ammonia on ammonia-fueled gas carriers is an integral part of our vision to become an industry leader in low-carbon production,” Jean-Pierre Perarnaudsaid Chief Executive Officer of Ten08.
In April this year, Navigator Gas completed its first ship-to-ship ammonia transfer as part of its efforts to accelerate the transition to zero-emission shipping.
In 2023, the company also secured a 14.5% stake in Norwegian ammonia bunkering startup Azane Fuel Solutions.
