Future Fuel Talks: Ammonia bunkering needs customers beyond early adopters – CMB.TECH

CMB.TECH, a Belgian shipping company, plans to launch an ammonia bunkering terminal in Walvis Bay, Namibia, to support its growing fleet of ammonia-capable vessels. The company's chief technology officer, Roy Campe, explained that initial demand for the terminal will come from its own fleet, which will expand to 21 vessels by 2029.

Campe emphasized the importance of third-party demand from producers, traders, and other shipping companies to ensure the terminal's commercial viability. Walvis Bay was chosen for its abundant solar resources, low-cost renewable energy, and strategic location as a deep-sea port with room for future expansion. This combination of factors makes it an ideal location for the large-scale production, storage, and bunkering of green ammonia.

While CMB.TECH's fleet provides the initial demand, third-party volumes from various stakeholders will be crucial in scaling the terminal and maximizing its utilisation. The company aims to create an open market rather than a closed ecosystem. By investing in both vessels and bunkering infrastructure, CMB.TECH aims to address the industry's chicken-and-egg problem, as both sides of the market need to scale together.

The risks associated with investing in ammonia-capable vessels and bunkering infrastructure differ. Vessels face the risk of delayed market competitiveness for ammonia, while infrastructure investments are more location-specific and depend on factors such as local demand, regulation, and market development timing. Despite these risks, CMB.TECH believes that the long-term direction is clear and that countries like Namibia, with abundant renewable energy potential and deep-sea ports, are well-positioned to develop ammonia infrastructure.

CMB.TECH is open to investing in ammonia bunkering infrastructure at other ports if there is sufficient demand, both from its own fleet and the wider market.