A promising future is emerging for ammonia as a maritime fuel
March witnessed steady progress in the LPG and ammonia sectors, with clear signs that the long-term fundamentals—particularly for ammonia—are continuing to strengthen.
LPG: Recovery Underway
This month, the VLGC market has recovered, with spot rates climbing back to around $40,000 per day after being lower earlier in the year. Seasonal export flows from the United States and plans to increase export capacity by 25% over the next two years are supporting this trend.
Ammonia: Long-term Momentum in Development
Ammonia is advancing as a carbon-free maritime fuel and as a traded commodity. This month's highlights include:
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MOL and CMB.Tech are launching nine ships capable of operating on ammonia with long-term charters (learn more).
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A 400,000-ton green ammonia plant project in India, backed by six major Japanese companies (learn more).
- A €7 billion green hydrogen project in Egypt focused on fueling ships in the Suez Canal (learn more).
These developments demonstrate significant confidence within the industry. With three VLACs already included in our portfolio, EMF is perfectly positioned in this rapidly growing market. The successful full-load test of MAN's ammonia engine further confirms the reliability of our ships' technology.
Confidence for the Future
The LPG market is stabilizing, while ammonia is increasingly establishing itself as a long-term strategic asset. We remain confident in the strength of our positioning in both segments.
Sources: Clarksons, Tradewinds, Hydrogen Insights