Mainboard-listed Marco Polo Marine 5LY has signed a memorandum of understanding (MOU) with Amogy Inc to install a proprietary ammonia-to-power system in the company’s existing or newly built wind vessels.
Marco Polo Marine is an integrated marine logistics company engaged in shipping and shipyard operations across the Asia-Pacific region. This MOU is part of its efforts to decarbonise the shipping sector and reduce the carbon footprint of offshore wind farms. It will also enable Amogy to fine-tune its ammonia-to-power solution to support specific types of wind vessels.
Ammonia is predicted to become the leading fuel source for the world’s giant cargo ships by 2050. According to a report by the US Department of Energy, global offshore wind energy is a rapidly growing industry and is expected to increase by about five times in size by 2030.
Asia’s offshore wind capacity is forecast to expand at an annual average rate of 15.3% from 27 gigawatts (GW) as at end-2021 to 109GW in 2031. Wind vessels like commissioning service operation vessels (CSOV) and service operation vessels (SOV) are important support vessels in the offshore wind industry, and the adoption of ammonia power would see a significant decrease in carbon dioxide and other greenhouse gas emissions from such vessels.
The MOU announcement comes after the news of Amogy’s recent US$139 million ($185.15 million) series B-1 raise, which allows the group to deliver its innovative ammonia-to-power technology by 2024. Amogy is also building a zero-emission ammonia-powered vessel with the intention of sailing the vessel in late 2023.
Chief executive officer of Marco Polo Marine, Sean Lee, says the opportunity to collaborate with Amogy to combine environmentally friendly and innovative technologies is welcome. “We think that Amogy’s ability to convert ammonia to gaseous hydrogen in our wind vessels is a step in the right direction that brings us closer to our long-term goal of decarbonising the maritime industry by reducing greenhouse gas emissions. Additionally, it will help speed up the global transition towards clean energy sources.”
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Amogy’s chief executive officer Seonghoon Woo adds: “The Asia-Pacific region’s commitment to clean fuels makes it important that we have an impact here, and we hope that our partnership with Marco Polo Marine can serve as a powerful example for other maritime operators.”
Marco Polo Marine has ventured further into the offshore wind industry, following its acquisition of PKR Offshore, an established Taiwan-based wind vessel operator, in May 2022. The group also commissioned the development of a new CSOV at their Batam shipyard in September 2022, and has been supporting the development of offshore wind farms in Japan, South Korea and the wider Asia-Pacific region.
Shares in Marco Polo Marine closed 0.1 cents lower, or 2.27% down, at 4.3 cents on April 18.
