Low carbon ammonia participation strategy and initial implementation for a major Asian shipping company
Commercial Advisory – Energy Transition
The Engagement:
Support on low carbon ammonia market participation options across the value chain including sourcing and screening opportunities
The Client:
Major Asian shipowner
The Challenge:
Our client was seeking to diversify investments across the low carbon fuels value chain which would complement its decarbonisation strategy
Duration:
3 months
How Energex helped:
Participation Options
- Through workshops with the client and in line with the client’s wider corporate strategy, Energex helped to define risk appetite and key performance indicators of any participation outside of the client’s core business of providing shipping solutions.
- Energex identified participation options across the value chain, with core focus areas including upstream investment, offtake from production facilities, downstream supply to customers in end markets etc.
- As a next step, Energex tested our recommendations through detailed market interviews and testing with a view to form a view on the main barriers and enablers of market participation options
Representing our Client through market testing
- Once suitable participation options had been identified, Energex created a shortlist of potential counterparties from our network to test potential collaboration opportunities in the space
- This list was refined with our client together with an agreed approach for how Energex would represent our client for market engagement
- Energex held meetings on behalf of our client with over 15 market participants from across the low carbon ammonia fuel chain with a focus on partnership opportunities for our client in the previously identified core focus areas
- The output of the market testing further refined our recommended market participation strategy based on real opportunities in the market
Tangible Impact:
- Following market testing, one specific core focus area emerged as a clear front runner where it made sense for our client to focus efforts in seeking opportunities and building partnerships in the space
- Energex introduced our client to two perspective partners that we had previously engaged with on their behalf during market testing
- Discussions are ongoing around creating a partnership with the identified company(s) and Energex continue to support the implementation moving forward