Navigator Gas and Attis Clean Energy invest in Ten08 Energy
Navigator Holdings Ltd., the owner and operator of the world’s largest fleet of handy-size liquefied gas carriers, has announced a co-investment alongside lead investor Attis Clean Energy in the clean ammonia developer Ten08 Energy LLC, previously announced on May 15, 2024.
Ten08 is developing an industrial-scale hybrid blue and green ammonia production export facility on the Gulf Coast of Texas with the goal of producing the most competitively priced ammonia molecule to help decarbonize the power, shipping, fertilizer and chemicals industries. The first phase, comprising 1.4 metric MMtpy of ultra-low carbon ammonia production, is expected to commence operations in late 2029 / early 2030.
The $2.5-MM commitment by Navigator complements the development capital from lead investor Attis which made its initial investment in May of this year and is partnering with Navigator to fund development until final investment decision (FID). In return for its initial investment, Navigator received an option to make a larger investment at FID of up to $100 MM of preferred equity towards construction of the terminal and export infrastructure of the project, with potential further investments in subsequent expansions.
Navigator and Ten08 intend to offer an integrated service of U.S.-based clean ammonia production combined with international seaborne transportation of the ammonia on ammonia-powered gas carriers to Ten08’s customers in Europe and Asia.
Clean ammonia can be used to decarbonize the fertilizer and chemical industries and is also a low-carbon fuel that can be used both for the power sector and for the shipping industry. In the power sector, the development of 100% ammonia-fueled gas turbines and engines paves the way to low-carbon electricity generation from clean ammonia.
This new source of ammonia demand is expected to represent a tripling of the current ammonia production worldwide. The shipping sector currently accounts for 3% of global GHG emissions, and according to Lloyd’s Register, by 2050 clean ammonia is expected to satisfy approximately 46% of the sector’s fuel needs. The low price point for blue ammonia and its scalability makes it an attractive fuel for the shipping industry to substantially reduce its GHG emissions as pressure mounts from the IMO and from EU regulations.
Mads Peter Zacho, Chief Executive Officer, Navigator, stated: “This investment is yet another example of our commitment to growth through energy infrastructure projects and meaningfully supports our existing ammonia shipping business. Clean ammonia is crucial to the success of the energy transition for both power generation and carbon free shipping, and the Ten08 project will play a critical role in further developing the clean ammonia industry. As a result of this investment, we look forward to strengthening our working relationships with numerous customers and partners around the world.”
Jean Perarnaud, Chief Executive Officer, Ten08, commented: “We are pleased to welcome Navigator as a strategic investor in Ten08. Partnering with Navigator enables Ten08 to offer an integrated solution for delivering clean ammonia to our customers. Moreover, seaborne transportation of Ten08’s ammonia on ammonia-fueled gas carriers is an essential component of our vision of becoming industry leaders on low well-to-wake carbon intensity.”
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