CMB.TECH is planning to launch an ammonia loading terminal in Walvis Bay, Namibia, designed to supply fuel for its ammonia fleet and other ship owners, fuel producers, and traders. The terminal is expected to begin construction in 2027 and is projected to be operational by late 2028 or early 2029.
Fleet Details and Capacities
The CMB.TECH fleet is planned to reach 21 vessels by 2029, including 18 cargo ships, one container ship, and two chemical tankers. The first vessel of this fleet, "Mineral Europa," is en route to Australia, and several more ships will be delivered over the next nine months. This Belgian company also aims to expand its ammonia fleet to over 40 vessels, although no specific timeline for completing this fleet has been announced.
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Challenges and Opportunities in Loading Infrastructure
Roy Campe, CMB.TECH's Chief Technology Officer, explains that investing in ammonia loading infrastructure helps manage the risks associated with adopting new fuels. By creating demand for fuel from its fleet, the company aims to establish an open market rather than a closed ecosystem. Campe believes that demand from producers, traders, and other shipping companies will be essential for scaling the terminal and maximizing its efficiency.
Additionally, this terminal is envisioned as an ammonia loading hub for the broader market. Namibia is recognized as a strategic point for producing and storing green ammonia due to its excellent solar resources and renewable energy production capacity. This infrastructure, with ample expansion capabilities, has high potential to meet global needs for this new fuel.
The Future Ammonia Market and Investment Requirements
Investment in ammonia loading infrastructure in Walvis Bay will also help CMB.TECH manage risks arising from market fluctuations. The company is seeking to secure fuel for its fleet in collaboration with global producers and currently has agreements with various companies. Campe emphasizes that the commercial requirements for investing in ammonia loading infrastructure heavily depend on local demand, regulations, and market development timing.
Ultimately, CMB.TECH aims to align investments in ships, production, and loading infrastructure to develop the market and manage existing risks along the way. These investments should be evaluated over several decades to achieve sustainability and steady growth.
