The giant commodities group Trafigura has contracted four ammonia dual-fuel medium gas carriers (MGC) at HD Hyundai Mipo Dockyard in Ulsan, South Korea.

The vessels will carry LPG or ammonia, with the first ship delivery in 2027. The group didn’t disclose any price for this order.

One of the world’s largest charterers of vessels, Trafigura, responsible for more than 5,000 voyages a year with around 400 ships currently under management, said each vessel, when delivered, will be equipped with a dual-fuel low-carbon ammonia engine.

This move will support the company’s commitment to reduce the carbon intensity of its own shipping fleet by 25% by 2030.

Trafigura is one of the operators to have tested a full range of alternative shipping fuels including LNG, methanol, LPG and biofuels on its owned and chartered vessels.

It has also co-sponsored the development of a two-stroke engine by MAN Energy Solutions that can run on green ammonia, and is also investing in on-board carbon capture technology.

Andrea Olivi, head of wet freight for Trafigura, said: “We are excited to embark together with HD Hyundai Mipo on this ambitious project which supports our commitments to decarbonising shipping and will help us to develop the global low-carbon ammonia bunkering infrastructure needed for zero-carbon shipping to become a reality.”

The company, which is continually looking for ways to further reduce emissions from its fleet, is a founding member of the Sea Cargo Charter, an industry coalition established to collect, assess, and report shipping emissions.

It is also a key member of the Global Maritime Forum’s Getting to Zero coalition and a founding member of the First Movers Coalition.