Ammonia-fueled shipping startup Viridis Bulk Carriers AS has signed MOUs with five cargo shippers with the goal of setting up an efficient zero emissions shipping network.
Viridis — a joint venture between two Norwegian shipowners, Navigare Logistics and Mosvolds Rederi, and zero emission ship project specialists Amon Maritime —will provide the ships. The cargo volumes would be provided by the five client partners: Elkem, Vestkorn, BioMar, Franzefoss Minerals and Saltimport.
As well as further developing the ship technology platform, the partnership will explore a zero-emission logistics system comprising ships, fuel logistics and flows of cargo from the five cargo owners.
The end goal is to create a flexible bulk shipping network, served by a fleet of ammonia-powered ships, based on long term contracts of affreightment.
The ships will be sufficiently flexible to handle varying types and volumes of cargo, in terms of both operational range and functional capabilities, while maintaining crew and societal safety at the level of conventional ships.
Viridis Bulk Carriers expects to place building orders for ships during 2022, with deliveries starting in 2024/25.
“We see clear synergies between the cargo flows of our client partners”, says Espen Nordstrøm at Viridis Bulk Carriers. “This is a good starting point to achieve high ship utilization. With the increased productivity in the logistics chain, the goal is to reduce the cost impact of utilizing carbon free ammonia fuel, which may initially be more expensive than fuels used today. Realization of the project will have a significant impact on local pollutants and global CO2 emissions from shipping, in addition to reducing value chain emissions for food-, fish feed-, metals-, fertilizer-, construction-, and other industries which transport large bulk and special project cargo volumes.”
WHAT’S IN IT FOR THE CLIENT PARTNERS?
“As one the world’s leading companies in the environmentally responsible manufacturing of metals and material solutions, we look forward to continue the collaboration with Viridis with the ambition to reduce emissions throughout the supply chain,” says Ellen Groeneveld, Managing Director at Elkem Maritime Center.
“As a total supplier of salt products, we are dependent on imports and sea transport,” says Lisbeth Nordal, Dry Cargo Broker at Saltimport. “Saltimport has constant focus on innovation and sustainable logistics solutions across our value chain. We have a clear goal to reduce our carbon footprint and offer the most environmentally friendly shipping alternatives for our customers and partners,”
“BioMar’s focus is to ensure sustainability throughout the entire value chain, from raw materials to slaughtered fish,”says Tore Gunnar Wikdal, Director Distribution and Inbound Logistics at BioMar. “Enabling reduction of emissions for our logistics is imperative to reach our goals.”
“Production of quick lime is a carbon intensive process. At Franzefoss Minerals, we have several active CCS and CCU projects, but we acknowledge that the timeline may be long before commercialization. Therefore, we have intensified our search for other measures that can reduce our overall carbon footprint. A major part of our cargo volume is transported by sea, and carbon free fuels will make a significant contribution,} says Nils-Petter Eriksen, Chief Sales Officer at Franzefoss Minerals AS.
“Vestkorn produces plant proteins from peas and beans and is strongly committed to reducing our environmental footprint. Sea transport accounts for as much as 30-80% of the CO2 emissions in our value chain, depending on product. Through the collaboration with Viridis and the other cargo owners, we will be able to not only reduce our own CO2 emissions considerably, but also contribute to commercializing zero emission solutions,} says Aslak Lie, CEO at Vestkorn.
“We are pleased that Elkem, Vestkorn, Biomar, Franzefoss Minerals and Saltimport have decided to join us in finding a carbon free solution for their logistical requirements. Together, we invite all environmentally ambitious cargo owners to collaborate with us. Zero emission shipping will be enabled through economies of scale, and our door is open for everyone who finds this interesting,” says André Risholm at Viridis Bulk Carriers.