Hafnia eyes hydrogen and ammonia shipping

Oslo-listed product tanker unit of BW Group, Hafnia, has teamed up with energy startup Clean Hydrogen Works (CHW) to explore the development of a new large-scale ammonia and hydrogen production and export facility on the West Bank of the Mississippi River in Ascension Parish, Louisiana.

A project called Ascension Clean Energy (ACE), which also includes the world’s largest CO2 pipeline operator Denbury Carbon Solutions as a shareholder, is targeted to start production by late 2027, with shipments of the fuel commencing in 2028.

The partnership estimated the project would cost around $7.5bn with 7.2m metric tons of ammonia produced annually and up to 98% of CO2 released from this process captured and transported via pipeline to planned sequestration sites for deep underground permanent storage.

Hafnia said additional technologies are being explored within the project which could result in “zero-carbon or even carbon negative hydrogen-ammonia production at the facility.”

Clean Hydrogen Works said it hopes to make a final investment decision and begin construction in 2024. At the peak of construction, around 1,500 construction jobs would be created.