More renewable ammonia projects in the offing

VLGC rates remain steady, holding in the $35,000–$40,000/day range, well above break-even levels. With the market covered throughout January, optimism for further rate increases in February prevails as demand remains strong.

CIP to break ground on Mexico ammonia project in 2026

Copenhagen Infrastructure Partners (CIP) is advancing its renewable ammonia project in Mexico, which will produce 900,000 tons of renewable ammonia per year, using wind and solar energy. The project, set to begin construction in 2026 and operational by 2028, will target the marine fuel market. This significant production capacity is expected to drive demand for Very Large Ammonia Carriers (VLACs). This highlights the increasing commitment from organizations to invest in ammonia projects, reinforcing its potential as a preferred fuel for the future of shipping.

With a $10 billion investment, the project is part of CIP’s broader Energy Transition Fund, focusing on sustainable fuels and low-emission ammonia. As global ammonia trade grows, driven by projects like this, VLACs stand to benefit from increased shipping activity, offering attractive opportunities for investors in the ammonia transport sector.

Source: Clarksons Research & Ammonia Energy Association