Bunker Holding Signs New Green Ammonia Deal

Bunker Holding is the world's largest bunkering firm by sales volume. Image Credit: Bunker Holding

Marine fuels conglomerate Bunker Holding, the world's largest bunkering firm by sales volume, is making further progress in its effort to secure supply of alternative fuels.

The company has signed a memorandum of understanding with NeoGreen Hydrogen Corp to collaborate on the operations, logistics and marketing of green ammonia and synthetic fuels across NeoGreen's global portfolio, it said in an emailed statement on Wednesday.

NeoGreen has green fuel projects under development in Portugal, Paraguay, Namibia, South Africa, Morocco and Egypt, and plans to become a major producer of alternative fuels for shipping.

Under the deal Bunker Holding will support NeoGreen in the marketing of its products to the bunkering firm's global client base.

"We are delighted to have entered into this relationship with Bunker Holding," Rory Harding, head of corporate development at NeoGreen, said in the statement.

"NeoGreen's strategy is to develop projects in geographies which offer access to the cheapest renewable electricity resources, as this has a dominant influence on the levelised cost of green hydrogen-based products.

"Our collaboration with Bunker Holding will ensure we benefit from their vast experience in operations, logistics, storage, and delivery of these maritime fuels to consumers.

"Bunker Holding will also be able to support NeoGreen in access to offtakers through its very significant existing client base across the global shipping industry.."

Ammonia is widely expected to take up a significant share of future marine energy demand because of its lack of associated carbon emissions. But further research and development work will need to be completed first looking into how its toxicity can be managed when handling it as a bunker fuel.