Bright future beckons for ammonia as shipping fuel

March brought steady progress across the LPG and ammonia segments, with clear signals that longer-term fundamentals – particularly for ammonia – continue to strengthen.

LPG: Recovery underway
The VLGC market recovered this month, with spot rates climbing back to around $40,000 per day -up from softer levels earlier in the year. Seasonal US export flows and plans to expand export capacity by 25% over the next two years support this sentiment.

Ammonia: Long-term momentum building
Ammonia continues gaining ground as a zero-carbon marine fuel and a traded commodity. Highlights this month include:

• MOL and CMB.Tech is launching nine ammonia-capable vessels with long-term charters (see link).
• A proposed 400,000-tonne green ammonia plant in India, backed by six major Japanese companies (see link).
• A €7 billion green hydrogen project in Egypt focused on fueling ships in the Suez Canal (see link).

These developments confirm strong industry confidence. With three VLACs already in our portfolio, EMF is well-positioned in this emerging market. The successful full-load test of MAN’s ammonia engine further validates the technology behind our vessels.

Confidence looking ahead
The LPG market is stabilizing, while ammonia continues to build as a strategic long-term play. We remain confident in the strength of our exposure to both segments.