World’s Largest Ammonia Carriers to Be Constructed for Lower-Carbon Energy Solutions

ADNOC and Wanhua Chemical Group Join Forces for Major VLAC Construction Contracts in Abu Dhabi

Abu Dhabi: In a significant stride towards sustainable energy solutions, ADNOC Logistics and Services plc (ADNOC L&S) has recently announced the awarding of a 0 million (AED 918 million) contract to China’s Jiangnan Shipyard for the construction of two Very Large Ammonia Carriers (VLACs). This venture, in collaboration with their joint venture partner Wanhua Chemical Group, marks a pivotal moment as the UAE aims to bolster its role in the expanding market for lower-carbon energy solutions.

The announcement was made during a signing ceremony in Abu Dhabi, coinciding with the inauguration of Jiangnan Shipyard’s first office in the Middle East. The contracts are part of ADNOC L&S’s strategic focus on meeting the surging demand for alternative energy transports, particularly ammonia, which is increasingly viewed as a key component in the global energy transition.

The Importance of Ammonia Carriers

As the world pivots towards greener forms of energy, ammonia is emerging as a promising low-carbon energy carrier. Each of the newly contracted VLACs will have a substantial carrying capacity of 93,000 cubic meters, making them among the largest vessels of their kind globally. Scheduled for delivery between 2027 and 2028, these VLACs will be equipped with state-of-the-art dual-fuel engines that can operate on liquefied petroleum gas as well as conventional fuels, emphasizing their role in promoting a cleaner energy future.

Captain Abdulkareem Al Masabi, who serves as both the Chairman of AW Shipping and CEO of ADNOC L&S, underscored the significance of these contracts, stating, “These agreements reflect our commitment to meeting the future demand for lower-carbon energy sources, such as ammonia, which are essential in driving the energy transition. We are excited to welcome Jiangnan Shipyard as they establish their new office in Abu Dhabi, reinforcing our partnership and the strong industrial ties between the UAE and China.”

East Meets West: A Growing Partnership

The collaboration with Jiangnan Shipyard illustrates the deepening industrial ties between the UAE and China. Lin Ou, Chairman of Jiangnan Shipyard, commented on the partnership’s potential, stating, “This collaboration is a testament to our collective efforts in decarbonizing industrial processes and will contribute significantly to the future energy transition.”

In addition, Kou Guangwu, President and CEO of Wanhua Chemical Group, expressed enthusiasm about the developments saying, “We are pleased to sign these additional VLAC contracts during the opening of Jiangnan Shipyard’s Abu Dhabi office. This initiative marks our strong commitment to supporting the energy transition for sustainable growth.”

The Road Ahead: Sustainability and Industrial Growth

The contracts for these ammonia carriers are not merely a business venture; they represent a broader vision for sustainable growth in the energy sector. As nations around the world grapple with climate change and the necessity for cleaner energy solutions, the UAE has positioned itself as a leader in advancing lower-carbon energy technologies.

This move not only supports the emirate’s economic diversification goals but also facilitates job creation and boosts the local industry. By collaborating with global companies like Wanhua Chemical Group and Jiangnan Shipyard, ADNOC L&S is nurturing an industrial ecosystem that thrives on innovation, sustainability, and strategic partnerships.

Conclusion: A New Era in Energy

As we approach a future that prioritizes sustainable practices, the partnership between ADNOC L&S and Jiangnan Shipyard resonates with the echoes of a new era in the global energy landscape. By focusing on developing advanced transport solutions for low-carbon energy sources, both companies are laying the groundwork for a cleaner, more sustainable tomorrow.

In conclusion, as these ships are built and deployed, they will not only transport ammonia but symbolize the UAE’s transition towards a more sustainable energy model, setting an example for other nations to follow. The construction of the VLACs is a significant leap in ensuring a greener future for the energy sector and highlights the UAE’s commitment to being at the forefront of the global energy transition.

Tags: #BusinessNews #EconomyNews #UAE #EnergyTransition #Sustainability #GlobalPartnerships