CIC eyes 17.5 million tonnes of clean fuel to Asia, Europe over five years

Delivery will start by 2027 at the earliest.

Australia-based Climate Impact Corp. (CIC) targets to ship almost 3.5 million tonnes of renewable hydrogen to Asia and Europe yearly in the next five years, as more companies shift to clean fuel sources.

“In five years, we will be delivering close to three-and-a-half million tonnes per annum,” CIC Chairman David Green told Marine & Industrial Report. The supply will be coming from its two 10-gigawatt facilities in Australia.

Green said they are in talks with several companies in Japan, where there is a strong demand for alternative fuels such as ammonia from clean hydrogen.

The trend is being driven by major oil and energy companies seeking to transition away from natural gas and coal, as well as steel manufacturers focused on decarbonising their operations.

The size of Japan's ammonia market reached 1.3 million tonnes last year and is projected to hit 1.9 million tonnes by 2033, according to market research firm IMARC Group. 

Tokyo is looking at ammonia to meet its environmental goals, which include achieving 100% ammonia-fuelled power generation and deploying zero-emission fuel technologies for ships by 2050.

Green said the company is also working with companies in South Korea, Singapore, Malaysia, Indonesia, and China.

The first delivery is expected by 2027 at the earliest. CIC partnered with Singapore-based Purus Marine Services Ltd. to bring the fuel to its markets.

Green earlier said demand for renewable hydrogen is powered by a desire for zero-carbon fuels, but traditional products don’t measure transport emissions when claiming to produce a truly green hydrogen product. 

Under the partnership, the parties will set up a zero-emission shipping route using vessels powered by green fuels, so the transported supplies align with each country's environmental shipping standards.

Green said shipments would start with medium gas carriers, later expanding to larger ships as CIC increases its volumes. About 20 ships will be operating between Australia and Europe once full production begins, he added.

“We would then need to work with Purus closely to start to forecast the way in which we can execute that strategy to ensure that we've got all the infrastructure in place for us when we ramp up the delivery,” he added.