Navigator Gas awarded approval in principle for ammonia fuelled gas carrier by classification society DNV

September 28, 2021 – Navigator Holdings Ltd. (“Navigator”) (NYSE: NVGS), a leading provider of seaborne transportation and distribution of liquified gases, is pleased to announce that its subsidiary Navigator Gas L.L.C. has been awarded an approval in principle (“AIP”) for an ammonia fuelled gas carrier design by classification society DNV AS (“DNV”).

Navigator collaborated with an industry-wide consortium, including MAN Energy Solutions, Babcock International and the Norwegian Maritime Authority to achieve the AIP from DNV.

The new gas carrier design has been awarded the AIP based on the special features notation (GF NH3) under DNV’s new rules for the use of ammonia as fuel in gas carriers. DNV, alongside the Norwegian Maritime Authority, reviewed the design and relevant documentation and found no potential showstoppers to its realisation.

On behalf of Navigator, Paul Flaherty commented:

“Obtaining an AIP from DNV for an Ammonia fuelled vessels is the first step in preparing Navigator Gas to meet the future demands of our customers and to reduce our carbon footprint through lower greenhouse gas emissions. In the longer term, using Ammonia as fuel is one of Alternative Fuels options we are pursuing, along with CCS, Carbon Offsetting and improved Vessel Optimisation to reduce our carbon footprint and lower greenhouse gas emissions. I would like to thank DNV, MAN Energy Solutions, Babcock International and the Norwegian Maritime Authority, for their unwavering support and input during the AIP process”

Torgeir Sterri, Senior Vice President, Regional Manager West Europe, DNV Maritime commented:

“We are very pleased to be working with Navigator Gas and so many leading companies on this AIP. If our industry is going to continue to play a central role in the global economy, we need to be exploring all options that can get us further towards decarbonization. At the same time, we recognize that for our customers, how to tackle the decarbonization challenge is going to be most challenging and significant decision they are likely to make this decade. This is why we have created class notations and guideline that give them the flexibility to find the path that fits their operations and business.”

Andrew Scott, Business Development Director, Babcock LGE said:

“This ammonia as a fuel concept design is supported by Babcock LGE’s operational experience of delivering Liquefied Petroleum Gas (LPG) fuel supply systems and carrying ammonia as a cargo on gas carriers, meaning specific issues occurring when utilising ammonia as a fuel are well understood, resulting in an inherently safe design. Babcock LGE is enabling the transition towards a cleaner, sustainable future through innovative technologies, and we are delighted to be working with our partners in this significant project”.

Of the award, Thomas S. Hansen, Head of Promotion and Customer Support, MAN Energy Solutions commented that:

“MAN Energy Solutions is happy to work with industry partners in decarbonising the maritime economy where, for us, the path starts with fuel decarbonisation. Here, several zero-carbon fuels offer significant potential, with ammonia of especial interest. Since large quantities of ammonia are already transported around the world, it is a well-established commodity and using it to power ships would be a natural step. In this context, we have already announced that we expect to be make a dual-fuel, two-stroke ammonia engine commercially available for large-scale ocean-going ships by 2024, followed by a retrofit package to make existing maritime vessels capable of running on ammonia by 2025”.

“We are proud to be a part of this project and it has given us vital input on how to handle the safety concerns when using ammonia as fuel. Ammonia could play an important role in the decarbonization of shipping and therefore the safety concerns have to be addressed. This project shows that it’s possible to manage some of the challenges within decarbonization through good cooperation,” said Lars Alvestad, acting Director of Shipping and Navigation, Norwegian Maritime Authority.

About Us
Navigator Holdings Ltd. is the owner and operator of the world’s largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation services of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas (“LPG”) and ammonia and owns a 50% share, through a joint venture, in an ethylene export marine terminal at Morgan’s Point, Texas on the Houston Ship Channel, USA. On August 4, 2021, Navigator announced that it merged the fleet and business activities of Ultragas ApS with its own, adding an additional 18 vessels to the fleet. The transaction unites two leading gas shipping companies. Navigator’s combined fleet now consists of 56 semi- or fully-refrigerated liquefied gas carriers, 22 of which are ethylene and ethane capable.  The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with its sophisticated vessels providing an efficient and reliable ‘floating pipeline’ between the parties, connecting the world today, creating a sustainable tomorrow.

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