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Azane and Equinor Sign World-First Ammonia Bunkering Agreement

Azane and Equinor Sign World-First Ammonia Bunkering Agreement
today at 12:10 4

Norwegian company Azane Fuel Solutions has signed a framework agreement with Equinor Energy covering the supply of ammonia fuel and bunkering services for ammonia-powered vessels.

Azane describes it as the world’s first framework agreement of its kind. Initial fuel deliveries are scheduled to begin in the second half of 2026.

The companies have not disclosed the agreement’s financial terms, contracted volumes, duration or the locations of the first bunkering operations.

Ammonia will be delivered by road tankers

The agreement covers truck-to-ship bunkering, in which ammonia is transported to the quay by road tanker and transferred directly to the receiving vessel.

The arrangement therefore involves truck-to-ship rather than tanker-to-ship bunkering. According to Azane CEO Steinar Kostøl, this method offers a practical and flexible solution for the early adoption of ammonia-powered vessels while dedicated port infrastructure continues to develop.

The agreement establishes a commercial framework for future ammonia deliveries and bunkering operations. Azane said it also demonstrates growing confidence in ammonia as an alternative marine fuel.

Companies have worked together since 2023

Azane and Equinor have cooperated since 2023 through the AFNO 2030 project. The project focuses on ammonia-fuel logistics, bunkering infrastructure, operational planning and safety requirements for Norway’s offshore energy sector.

One of the first potential users of the fuel could be Viking Energy, a platform supply vessel owned by Eidesvik Offshore. The ship is being converted to ammonia propulsion at Halsnøy Dock.

Following the conversion, Viking Energy will operate under contract with Equinor. The company expects the new propulsion system to reduce the vessel’s greenhouse gas emissions by at least 70% compared with its existing LNG and marine gas oil configuration.

The project includes the installation of a Wärtsilä engine, ammonia storage and fuel-supply systems, and exhaust-treatment equipment. The converted vessel is expected to enter service in 2026.

Norway will receive three ammonia terminals

Azane is also developing permanent infrastructure for ammonia bunkering. Its subsidiary Azane Infrastructure received NOK 442 million in funding from the Norwegian state agency Enova.

The funding will support the construction of three bunkering terminals in Florø, Mongstad and the Stavanger area. All three facilities are targeted to become operational by 2029, subject to final investment decisions.

Ammonia does not produce carbon dioxide when used as fuel, although its overall climate impact depends on how it is manufactured. It is also toxic, meaning that storage and transfer operations require specialised equipment and strict safety procedures.

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