Trafigura and CF Industries sign preliminary deal to ‘advance’ the use of low-carbon ammonia as a shipping fuel
Source：hydrogeninsight
A trio of firms have signed a memorandum of understanding (MoU) to “advance” the use of low-carbon ammonia as a shipping fuel in a push to decarbonise the notoriously emission-heavy maritime industry.
The agreement – signed by commodity trader Trafigura, fertiliser producer CF Industries, and Trafigura joint venture TFG Marine – will focus initially on the US Gulf Coast and northwest Europe, with each company taking a lead in a different area of ammonia production, transport, or bunkering (ie, ship refuelling).
Trafigura will contribute its expertise in company logistics and market development, while CF Industries will leverage its existing blue ammonia production and export capabilities at its facility in Donaldsonville, Louisiana.
The move builds on an existing relationship between the two firms that saw Trafigura purchase 23,500 tonnes of blue NH3 from CF Industries in October last year and subsequently ship it from the Donaldsonville facility to Belgium for use by engineering materials company Envalior.
TFG Marine — which is a joint venture between Trafigura and shipping firms Frontline and Golden Ocean Group — will meanwhile leverage its fuel supply network and bunkering capabilities to support the transport of ammonia and ensure it gets to vessels where needed.
“We are pleased to collaborate with industry leaders such as Trafigura and TFG Marine to establish the supply chain necessary to meet the expected transition of the marine shipping industry to low-carbon ammonia as a fuel,” said Bert Frost, executive vice-president and chief commercial officer at CF Industries.
Ammonia has struggled to take off as a shipping fuel for various reasons, with ship classification body DNV noting that NH3 requires nearly triple the volume of marine gas oil for the same energy density, and that ammonia-fuelled ship bunkering facilities come at a premium in terms of cost.
There have also been concerns around the safety of ammonia, which is extremely toxic and poses a significant safety risk to humans and marine wildlife. Currently, ammonia is only allowed to be used as a fuel in pilot projects for this reason, though the International Maritime Organization is expected to develop more formal rules for its use soon.
As of December 2025, only 144 ammonia-fuelled vessels and 302 ammonia-ready vessels have been ordered and announced, according to the Ammonia Energy Association.