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Shipping giants invest bns into ammonia fuel carriers: As green ammonia production gains momentum, top shipping firms — including Maersk, TMS Cardiff Gas, Capital Maritime, Mitsui OSK Lines, and Nippon Yusen Kaisha — have ordered USD 16 bn worth of vessels to transport ammonia, Bloomberg reported, citing research by UK-based VesselsValue. While today most of the delivered fleet is being used to transport liquefied natural gas (LNG) and petrochemicals, an increase in ammonia demand in line with energy transition goals could increase the fleet of ships able to carry ammonia by 25% within three years, the business information service writes, citing data from maritime and shipping analytics firm Clarkson Research Services.
It may not be so easy: As the fleet of ships expands, it is unclear whether ammonia production will meet forecasts by 2027. Almost 66% of announced ammonia projects are still in early development, while some have not begun feasibility studies. Given that the new vessels are adaptable and can carry both ammonia and petroleum cargo, firms may be forced to use the vehicles to carry hydrocarbons and petrochemicals if clean ammonia production falls short of production forecasts.
EV manufacturer VinFast is the latest target of slowed demand in the sector: Vietnamese EV maker VinFast Auto has decided to delay the completion of its North Carolina Factory by three years and has lowered its full year sales target to 80k from 100k, Bloomberg reported. VinFast will face “further challenges” as consumers shift from full EVs to hybrid cars, Chief Market Strategist Tyler Manh Dung Nguyen told the news outlet. Even with decreased sales targets, the company is at risk of further downgrades from the initially set target of reaching 168% in growth, Bloomberg Intelligence analyst Ken Foong warned.
The company’s been struggling for a while now: VinFast — along with Tesla, Rivian, Xpeng, Nio, Leapmotor, and Fisker — all either missed their annual production targets or experienced record low slumps in stock earlier this year. The company saw its market cap drop from USD 190 bn to USD 13 bn over a five-month period. In the US, the company was forced to recall 999 of its VF8 SUVs from the US due to software issues.
ALSO- Companies are reluctant to invest in critical minerals because of slowing EV market: Companies are not investing in critical minerals and renewables because of uncertainty regarding the consumer demand and government commitment for the projects, industry players said at the World Materials Forum last week, according to Reuters. Demand for critical materials is doing better in China and Asia than the West, where sales of EVs dropped significantly, including a 12% in the EU.
OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-
- China’s emissions decline for first time since 2016: China’s power generation and oil consumption went down last month in parallel to increased adoption of renewables and EVs, setting the country up for a 7.2% to 8.2% emissions decline this year, the first for the country since 2016. This makes 2023 the year that China has hit peak output of greenhouse gasses. (Bloomberg)
