Hafnia Partners with Clean Hydrogen Works and Big Hill in Transformational Clean Fuel Projects
Clean Hydrogen Works

Hafnia is collaborating with Clean Hydrogen Works (CHW) on the Ascension Clean Energy (ACE) project, a large-scale clean hydrogen ammonia production and export initiative in Ascension Parish, Louisiana.

The project aims to capture up to 98% of CO2 emissions, with the potential for zero-carbon or carbon-negative hydrogen-ammonia production. With a projected investment of $7.5 billion and the creation of 350 permanent jobs, the project will significantly impact Louisiana’s economy. Hafnia will leverage its expertise to transport clean hydrogen ammonia globally, enhancing its transport portfolio with purpose-built vessels for zero-carbon contracts. Denbury Carbon Solutions will handle CO2 sequestration. Production is targeted for late 2027, with shipments beginning in 2028.

Hafnia CEO Mikael Skov emphasized the alignment of this project with Hafnia’s sustainability goals, while CHW COO Mitch Silver highlighted Hafnia’s industry leadership and commitment to reducing carbon emissions.

Hafnia is excited to announce its joint venture with Big Hill for the development of a sustainable hydrocarbon fuels plant. This innovative project, pending Final Investment Decision (FID), aims to produce low carbon intensity (CI) blue methanol and, at a later stage, sustainable aviation fuel (SAF). This collaboration underscores Hafnia’s commitment to advancing sustainable energy solutions and creating new opportunities in the shipping industry.

Big Hill

The joint venture will focus on establishing a state-of-the-art facility dedicated to the production of low CI blue methanol and SAF. These synthetic hydrocarbon fuels are crucial for reducing the carbon footprint of various industries, particularly maritime and aviation.

Initially, the plant will produce blue methanol, a type of methanol derived from natural gas but with significantly lower carbon emissions due to carbon capture and storage technologies. This low CI methanol serves as a cleaner alternative to traditional fossil fuels, supporting the transition to greener energy sources.

In a subsequent phase, the project will expand to include the production of SAF. This fuel, essential for the aviation industry’s sustainability goals, will further enhance the project’s impact on reducing global greenhouse gas emissions.

The development of this sustainable hydrocarbon fuels plant will open new avenues in the shipping industry. Hafnia and Big Hill will explore opportunities to transport CO2, methanol, and SAF via CO2 carriers, thereby creating a comprehensive supply chain for sustainable fuels and supporting the global shift towards cleaner energy.

Newbuild LNG Dual-Fuel Additions to the Hafnia Fleet
Modernising the Hafnia Fleet

Hafnia has now welcomed 4 new dual-fuel LR2 product tanker additions to our fleet. These vessels have been time chartered out to our long-standing customers TOTAL Energies (2) and Equinor (2) and are owned by a joint venture of Hafnia and CSSC Shipping.

In alignment with our sustainability values and ambitions in transitioning towards a greener future, these four LR2 tankers are equipped with Liquified Natural Gas (LNG) propulsion technology. LNG is widely regarded as a promising marine fuel helping the shipping industry move towards its goal of a 50% reduction in GHG emissions by 2050. LNG acts as a fuel that moves shipping toward its decarbonization goals in the interim, in anticipation of hydrogen and ammonia becoming commercially viable. Compared to ships powered by traditional fuel oil, LNG as a marine fuel typically results in 97% lower Sulphur oxide emissions, 97% lower particulate matter, 85% lower nitrogen oxide, and up to 20% lower overall GHG emissions.

The GHG emissions of vessels designed with the most efficient LNG propulsion technologies available will be in a range of 5,000-6,000 tons per year lower than conventional tankers. They will also be more efficient — meaning they exceed “Phase 3” Energy Efficiency Design Index (EEDI) requirements.

Built by Guangzhou Shipyard International (GSI), these dual-fuel vessels incorporate design traits we believe necessary for ships of the future. The high-pressure dual-fuel LNG engines incorporate a flexible design that not only ensures close to zero methane slip but also makes them adaptable to the zero-emission fuels of the future (such as ammonia or methanol). The vessels come equipped with a state-of-the-art fuel gas supply system that has full redundancy on all supply systems and which can handle boil-off gas from the LNG tanks under any condition. The auxiliary engines, gensets, and boilers can run on multiple fuel types.

Takeover of all four vessels took place during 2023 and 2024, marking the beginning of alternate fuel usage at Hafnia. “We are confident these vessels will pave the path for alternative fuel-enabled vessels entering the Hafnia fleet in the future,” stated Ralph Juhl, EVP Technical.