Alfa Laval secures first contract for ammonia fuel supply system
Rhea-AI Summary
Alfa Laval (ALFVY) has secured its first contract for the FCM Ammonia fuel supply system, marking a significant step in maritime decarbonization. The system will be installed on seven ammonia dual-fuel LPG/ammonia carriers for Tianjin Southwest Maritime at CSSC Huangpu Wenchong shipyard in China.
The contract includes three 25,000 cubic metre and four 41,000 cubic metre LPG/ammonia carriers, with the first unit scheduled for delivery by end-2025. This development comes as international shipping is projected to more than double by 2050, making the adoption of low-carbon fuels important for achieving net zero emissions.
The company leverages its experience with fuels like methanol and LPG to advance ammonia fuel technology, demonstrating its technological readiness in handling ammonia as a marine fuel.
Positive
- First-mover advantage in ammonia fuel supply systems for maritime industry
- Strategic contract win for 7 vessels demonstrates market validation
- Expands product portfolio in growing maritime decarbonization market
- Leverages existing expertise in methanol and LPG fuel systems
Negative
- First delivery not until end of 2025 indicating long revenue recognition timeline
- Early-stage technology may face implementation risks
News Market Reaction
On the day this news was published, ALFVY gained 0.13%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
With international shipping projected to more than double by 2050, the adoption of low-carbon fuels is crucial in the maritime industry's pursuit of net zero emissions. Ammonia, recognized as a promising low-carbon fuel, is experiencing significant advances and increasing demand.
Alfa Laval is instrumental in delivering comprehensive fuel solutions to address the evolving requirements of the maritime sector, and the ammonia fuel supply system is another addition to a toolbox of solutions that can accelerate the industry's decarbonization efforts. Alfa Laval has secured the first contract for its ammonia fuel supply system, highlighting its technological readiness to handle ammonia as fuel, as one of the pioneers in the industry.
"Through research, product development, and strategic partnerships, we are building the solutions needed for a safe and efficient transition to low-carbon alternative fuels," says Peter Sahlen, Head of Marine Separation, Fuel Supply System & Heat Transfer, Alfa Laval. "Our deep experience with fuels like methanol and LPG has given us a head start with ammonia, and this first contract validates our commitment to driving decarbonization in shipping with reliable and innovative solutions."
The FCM Ammonia will be installed on a CSSC Huangpu Wenchong shipyard in
Contacts
Johan Lundin
Head of Investor Relations, Alfa Laval
Mobile: +46 730 46 30 90
johan.lundin@alfalaval.com
Sara Helweg-Larsen
Head of Communication, Alfa Laval
Mobile: +46 730 35 80 98
sara.helweglarsen@alfalaval.com
This is Alfa Laval
The ability to make the most of what we have is more important than ever. Together with our customers, we're innovating the industries that society depends on and creating lasting positive impact. Alfa Laval is a leading global provider of first-rate products in the areas of heat transfer, separation and fluid handling. We're set on helping billions of people to get the energy, food, and clean water they need. And, at the same time, we're decarbonizing the marine fleet that is the backbone of global trade.
We pioneer technologies and solutions that enable our customers to unlock the true potential of resources. As our customers' businesses grow stronger, the goal of a truly sustainable world edges closer. The company is committed to optimizing processes, creating responsible growth, and driving progress to support customers in achieving their business goals and sustainability targets. Together, we're pioneering positive impact.
Alfa Laval was founded 140 years ago, has customers in 100 countries, employs more than 22,300 people, and annual sales were
This information was brought to you by Cision http://news.cision.com
The following files are available for download:
https://mb.cision.com/Public/905/4120823/ab6c79c071505b39.pdf | Alfa Laval secures first contract for ammonia fuel supply system Corporate press release 20250319 |
https://news.cision.com/alfa-laval/i/cssc-huangpu-wenchong,c3388247 | CSSC Huangpu Wenchong |
FAQ
What is the size of Alfa Laval's (ALFVY) first ammonia fuel system contract?
When will Alfa Laval (ALFVY) deliver the first FCM Ammonia unit to Tianjin Southwest Maritime?
Who is the shipyard partner for Alfa Laval's (ALFVY) ammonia fuel system installation?
How does this contract align with maritime industry trends for ALFVY investors?
