Wed 25 Oct 2023 16:32

Bunker Holding and NeoGreen Hydrogen sign MoU for green ammonia and synthetic fuels

Danish fuel seller to market NeoGreen's products to its global client base.

Valerie Ahrens, Senior Director of New Fuels and Carbon Markets at Bunker Holding.

Valerie Ahrens, Senior Director of New Fuels and Carbon Markets at Bunker Holding. Image: Bunker Holding

Bunker Holding and NeoGreen Hydrogen Corp. have signed a memorandum of understanding to collaborate on the logistics, marketing and operations of green ammonia and synthetic fuels across NeoGreen's global project portfolio.

With the EU's FuelEU Maritime regulations due to enter into force in 2025 and the expectation of new IMO regulations in 2027, pressure is building on the shipping industry to prepare for a low-carbon future, with ammonia and e-methanol being two of the most likely future fuels for the industry.

Valerie Ahrens, Senior Director of New Fuels and Carbon Markets at Bunker Holding, remarked: "Legislation is driving the necessity for our clients to have reliable access to alternative fuels, while there remains considerable uncertainty about the sources of supply. We are very pleased to apply our extensive sector expertise to assist with the unlocking of value from NeoGreen's global pipeline of projects by facilitating the operations and logistics necessary to bring their products to market."

Rory Harding, Head of Corporate Development at NeoGreen, commented: "We are delighted to have entered into this relationship with Bunker Holding. 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."

Bunker Holding, which claims to be the world's largest bunker seller in terms of both volume and revenue, says it has been exploring opportunities to store and supply low-carbon fuels such as green ammonia and e-methanol and aims to position itself as a leading supplier of green bunkers. The firm recently signed an MOU with Yara Clean Ammonia in order to collaborate to accelerate the development of the market for clean ammonia as a shipping fuel.

NeoGreen Hydrogen is a renewable energy project developer, focused on the utilisation of solar, wind and hydro power generation for the production of both green hydrogen and downstream derivative energy products such as green ammonia and e-methanol. With projects under development in Portugal, Paraguay, Namibia, South Africa, Morocco, and Egypt, it intends to produce products for a variety of industrial offtakers, with one primary target segment being the production of future fuels for the shipping sector.

Both businesses believe that overcoming logistical and delivery challenges is key to assuring long-term offtake of new, environmentally friendly fuels and are set to cooperate across NeoGreen's portfolio to optimise these operations, whilst Bunker Holding will support in the marketing of NeoGreen's products to its global client base.

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