Shipping firm Navigator Gas and Amon Maritime have launched a new joint venture, Navigator Amon Shipping AS, to build two ammonia-fuelled gas carriers.

Navigator will hold an 80% stake, while Amon Maritime retains 20%, according to an emailed statement issued by Amon Maritime on Thursday.

Each 51,530 m3 vessel will also be capable of transporting LPG along with ammonia.

The ships are set to be built at Nantong CIMC Sinopacific Offshore & Engineering in China, with deliveries scheduled for June and October 2028.

The average cost per vessel is estimated at $84 million. 

Norwegian government agency Enova will provide NOK 90 million (about $9 million) in support for each vessel. The remainder of the funding is expected to come from a combination of commercial bank financing and capital contributions from both companies.

“Expanding our fleet with two modern ammonia carriers capable of using clean ammonia as a fuel, operating in a long-term time charter, is a strategic enabler in meeting the growing demand for a sustainable fuel source in a net-zero economy,” Mads Peter Zacho, CEO of Navigator, said.