Navigator Gas and Attis Clean Energy invest in Ten08 Energy to produce clean ammonia for export on the US Gulf Coast

Navigator Holdings Ltd., owner and operator of the world’s largest fleet of handysize LNG carriers, is pleased to announce a joint investment along with lead investor Attis Clean Energy (“Attis”) in clean ammonia developer Ten08 Energy LLC (“Ten08” or the “Project”), previously announced on May 15, 2024.

Ten08 is developing an industrial-scale hybrid blue and green ammonia export plant on the Texas Gulf Coast with the goal of producing the lowest-cost ammonia molecule to help decarbonize the energy, shipping, fertilizer and chemical industries. The first phase, which will involve producing 1.4 million tons of ultra-low carbon ammonia per year, is expected to be operational in late 2029/early 2030.

Navigator’s $2.5 million commitment complements development capital provided by lead investor Attis, which made its initial investment in May of this year and is working with Navigator to fund development through to final investment decision (“FID”). In consideration for its initial investment, Navigator received the option to make a larger investment of up to $100 million in preferred stock with FID for construction of the project’s terminal and export infrastructure, with potential further investment in subsequent expansions.

Navigator and Ten08 intend to offer Ten08’s customers in Europe and Asia an integrated service that includes the production of clean ammonia in the United States combined with the international maritime transportation of the ammonia on ammonia-fueled gas carriers.

Clean ammonia can be used to decarbonise the fertiliser and chemical industries and is also a low-carbon fuel that can be used in both the energy sector and the shipping industry. In the energy sector, the development of gas turbines and engines powered by 100% ammonia is paving the way for low-carbon electricity generation from clean ammonia. This new source of ammonia demand is expected to triple current global ammonia production. The shipping sector is currently responsible for 3% of global greenhouse gas emissions and according to Lloyd’s Register, clean ammonia is expected to meet around 46% of the sector’s fuel needs by 2050. The low price of blue ammonia and its scalability make it an attractive fuel for the shipping industry to significantly reduce its greenhouse gas emissions amid mounting pressure from IMO and EU regulations.

Mads Peter Zacho, Chief Executive Officer of Navigator, said:

“This investment is another example of our commitment to growth through energy infrastructure projects and meaningfully supports our existing ammonia transportation business. Clean ammonia is critical to the success of the energy transition for both power generation and carbon-free transportation, and the Ten08 project will play a critical role in the continued development of 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, CEO of Ten08, commented:

“We are pleased to welcome Navigator as a strategic investor in Ten08. By partnering with Navigator, Ten08 can offer our customers an integrated solution for the delivery of clean ammonia. In addition, the marine transportation of Ten08 ammonia on ammonia-fueled gas carriers is an integral part of our vision to become the industry leader in low carbon intensity from source to land.”
Source: Navigator Gas