Seize the Opportunity by Implementing Business Layout Contributes to Decarbonizing Global Shipping Industry
(10 October 2022, Hong Kong) — CIMC Enric Holdings Limited ("CIMC Enric" or the "Company") and its subsidiaries (collectively, the "Group") (Hong Kong stock code: 3899.HK) are pleased to announce, Nantong CIMC Sinopacific Offshore & Engineering Co. Ltd. (“CIMC SOE”), a subsidiary of the Company, announced the signing of a Memorandum of Understanding (MOU) with Fratelli Cosulich Bunkers Singapore, part of the international shipping giant Fratelli Cosulich Group for the construction of an ammonia bunkering vessel.
As a top contender for the fuel of the future, ammonia is widely recognized as a zero-carbon marine fuel with significant advantages including easy storage and transport, high energy density, a well-established industrial base and low production costs. Additionally, ammonia can be used as a solid oxide fuel cell, alkaline fuel cell and alkaline membrane fuel cell. Combining established fuel cell technology with a catalyst, ammonia fuel creates similar power density to a hydrogen fuel at the same temperature. It is also considered to be an ideal fuel to substitute hydrogen for fuel cells. According to the International Energy Agency (IEA), ammonia will account for 46% of marine fuel use by 2050, up from 8% in 2030. It is also expected to exceed hydrogen which is predicted to account for 16% of marine fuel by 2050.
The Fratelli Cosulich Group is an internationally renowned giant in the field of shipping, cargo and logistics with activities covering all relevant areas of the shipping industry. In November last year, Fratelli Cosulich entered for a joint development project agreement with the RINA and SeaTech to develop a joint ammonia bunkering vessel. According to the agreement, SeaTech will focus on the development and design of the vessel concept, while RINA will verify compliance with the application rules requirements, particularly those relating to handling ammonia. Fratelli Cosulich will be responsible for providing operational data to support and validate the suitability of the vessel design for commercial operation.
Mr. Gao Wenbao, Deputy General Manager of CIMC ENRIC and General Manager of CIMC SOE, said, “For the shipping industry, the choice of what fuel to use for our vessels is an important decisive factor. From the numerous options currently on the market's radar, all four fuels - hydrogen, ammonia, LNG and methanol - are likely to be fuel options for shipping vessels used on a large scale. The shipping industry accounts for approximately 3% of the global CO2 emissions. If the early tests of ammonia or other alternative fuels prove their scalability, these new technologies will begin to facilitate the shipping industry's transition away from fossil fuels which will help reduce carbon emissions that are contributing to climate change. As the market leader in the small and medium-sized carriers segment, CIMC SOE is deeply involved in the transportation and bunkering of various alternative fuels, such as ammonia and methanol, that will help decarbonize the global shipping industry.”