Alfa Laval has secured its first order for the FCM Ammonia fuel supply system, marking its path toward creating sustainable shipping solutions. The firm will deliver the ammonia-fueled fuel system to seven Tianjin Southwest Maritime-owned dual-fuel LPG/ammonia carriers.

A Step Towards Low-Carbon Shipping Solutions

With global shipping projected to nearly double by 2050, the shipping industry aims to cut carbon emissions. Low-carbon fuels hold a critical function in achieving worldwide decarbonization goals. Ammonia has gained attention as a promising alternative due to its low-carbon profile and growing demand.

Alfa Laval, the recognized technology pioneer in the shipping sector, is creating integrated fuel solutions to accelerate the industry’s shift towards cleaner fuels. The FCM Ammonia system is also Alfa Laval’s newest innovative solution to meet the evolving needs of the industry.

Also read: MAN Energy Solutions to deliver first-ever ammonia-fuelled ship engine

Alfa Laval’s Commitment to Decarbonizing the Maritime Sector

Peter Sahlen, Head of Marine Separation, Fuel Supply System & Heat Transfer at Alfa Laval, said, “Through research, product development, and strategic partnerships, we are building the solutions needed for a safe and efficient transition to low-carbon alternative fuels.”

He added, “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 ammonia fuel supply system will be installed at China’s CSSC Huangpu Wenchong shipyard. In addition, the initial phase of the installation will be on three 25,000 cubic meter LPG/ammonia carriers and then four more 41,000 cubic meter carriers. Furthermore, Alfa Laval will supply the first FCM Ammonia unit in 2025, a major milestone in the quest for net-zero emissions in the maritime industry.

ADQ, one of the premier sovereign investors in critical infrastructure and global supply chains, has joined forces with Energy Capital Partners (ECP), the largest private owner of power generation and renewables in the US, to form a 50-50 joint venture to develop new-build power generation and energy infrastructure opportunities. It will meet the increasing power demands of data centers, hyperscale cloud companies, and other high-energy sectors.

Addressing the Needs of High-Growth Industries

A stable and continuous power supply is essential since high-growth sectors such as AI, data centers, and electrification are growing quickly. This alliance will address the increasing demand for captive power plants locally, providing stable energy to energy-intensive industries. The joint venture will emphasize greenfield developments, expansion, and construction of new power facilities to dominate US power generation.

Capital Investment and Project Scope

The partnership will invest over $25 billion across 25 GW of projects, focusing primarily on the US market. The partnership may direct a portion of the capital toward strategic international markets. The joint venture’s initial capital contribution will amount to $5 billion, with plans to pursue development opportunities immediately. The partnership will rely on its highly experienced management team, specializing in power and infrastructure development, to execute projects efficiently.

Also read: BNP Paribas and EIB Join Forces to Boost Wind Energy Investments in the EU

Focus on AI and the US Energy Market

His Excellency Mohamed Hassan Alsuwaidi, Managing Director and Group CEO of ADQ, said, “The acceleration of AI and its societal adoption presents attractive opportunities to serve the power and infrastructure needs of data centers and hyperscalers. Meeting these power needs presents evolving challenges for governments worldwide in ensuring secure, stable, and commercially competitive electricity supply.”

Growth in Power Demand

The International Energy Agency (IEA) expects global electricity consumption to grow at its fastest rate in years, driven by the rising demand from data centers and industrial electrification. In the US, electricity demand will increase significantly, adding enough to match California’s current power consumption in three years. Experts predict data centers will increase power demand by 50% by 2027, rising 165% by by the end of the decade due to AI.