Eastern Pacific Shipping signs MoUs on development of world’s first ammonia dual-fuel vessels accelerating the maritime industry’s decarbonisation efforts

Ammonia dual-fuel engines will be fitted in a fleet of EPS-managed Newcastlemaxes and Very Large Ammonia Carriers (VLACs) slated for delivery from 2026 onwards

SINGAPORE, 6 September 2023 – Eastern Pacific Shipping (EPS), MAN Energy Solutions (MAN ES), HD Hyundai Heavy Industries Co., Ltd. (HHI), and yards from the China State Shipbuilding Corporation (CSSC) announced collaboration on the development of ammonia burning engine that will be fitted to a new fleet of EPS- managed vessels, catalysing efforts towards the industry’s net zero CO2 emission targets.

The three memorandums of understanding (MoUs) signed demonstrate the organisations’ ‘act-now’ approach to decarbonisation and environmental preservation. The engines developed are expected to create a pathway for wide-scale adoption across the maritime industry. EPS CEO Cyril Ducau says, “We have been talking about energy transition and lowering emissions for years. Today, we are ready to talk about zero-emission solutions. The ammonia engines by MAN ES will be an inflection point for the maritime industry. In the next few years, we expect to operate vessels with significantly reduced emissions running on ammonia. Dual-fuel engines like LNG, LPG, and ethane will still play a significant role in various segments. However, with this engine, it will mean that this will be the first time that ocean going vessels will take a significant step towards zero carbon emissions. This is a an extremely exciting time for all of us.”

MAN ES Senior Vice President and head of two-stroke Bjarne Foldager says, “MAN ES is pleased to be developing these state-of-the-art engines for EPS. This is a significant milestone for MAN ES, EPS, and the maritime industry. Together, we will show that ammonia is a commercially viable option for ship owners and managers to become IMO compliant years ahead of schedule. MAN ES looks forward to playing its role in creating a cleaner shipping industry by helping our partners substantially lower their carbon footprint.”

Maritime and Port Authority of Singapore (MPA) Chief Executive Teo Eng Dih says, “MPA is actively investigating the use of ammonia for international shipping and is glad to be part of this collaborative effort. The next few years will be critical as we work with partners to examine ways to de-risk the application and operation for ammonia-fuelled vessels, and enhance the development of low and zero carbon solutions. We look forward to working closely with EPS and partners to study the ammonia engine design and operations to support the development of new safety guidelines and standards, port preparations, training and emergency response plans.”

Joining EPS and MAN ES in signing one of the MoUs are MPA and the American Bureau of Shipping (ABS), and in the other two MoUs, Lloyd’s Register, Qingdao Beihai Shipyard (where the EPS-managed Newcastlemaxes will be built) and Jiangnan Shipyard (where the EPS-managed VLACs will be built) all of which will be fitted with the MAN ES ammonia engines.

The announcement comes a year after EPS, HHI, and ABS signed a similar MoU for the construction of a series of mid or large gas carriers. EPS has also ordered a series of Newcastlemaxes and Very Large Gas Carriers with CSSC which will be fitted with the MAN ES ammonia engines.

These vessels are expected to be delivered from 2026 onwards.

From left to right (first row): Lin Qingshan (Jiangnan Shipyard, VP), Cyril Ducau (EPS, CEO), Wu Aijun (CSTC,VP)
From left to right (second row): Du Gang (CSSC Group, VP), Idan Ofer

From left to right (first row): Yang Shu Zhen (Beihai Shipbuilding, Vice GM), Cyril Ducau (EPS, CEO), Wu Aijun (CSTC, VP)
From left to right (second row): Wang Yong Liang (CSSC Group, Director Shipbuilding & Offshore), Du Gang (CSSC Group, VP), Idan Ofer, Thomas Hansen (MAN Energy Solutions, Director)

From left to right (first row): John McDonald (ABS, President & COO), Cyril Ducau (EPS CEO), Seung Yong Park (HHI, Senior EVP & COO, Head of Group Ship/ Offshore Marketing Division), Kenneth Lim (MPA, Assistant Chief Executive (Industry & Transformation), Thomas Hansen (MAN Energy Solutions, Director), Nicolas Brabeck (MAN Energy Solutions, Managing Director)
From left to right (second row): Vassilios Kroustallis (ABS, Senior VP, Global Business Development & Global Marine), Capt. Anil Singh (EPS, COO), Kisun Chung (HD Hyundai Holdings & HD KSOE, President & Co-CEO), Idan Ofer, Jerry Kalogiratos (Capital Ship Management Corp, CEO & Director), Andi Case (Clarksons, CEO), Tan Woei Tyng (MPA, Senior Director (International Maritime Centre), Tay Gak Yong (EPS, Commercial Director)