Itochu Corporation has signed a shipbuilding contract for the construction of a 5000-m3 ammonia bunkering vessel with Sasaki Shipbuilding Co., Ltd. In addition, the company has ordered an ammonia tank plant that will be loaded onto the vessel with Izumi Steel Works Ltd.
The agreements were signed by Clean Ammonia Bunkering Shipping Pte. Ltd. (CABS), a wholly owned Singapore-based specific purpose company of Itochu. In relation to this, CABS has concluded a financing agreement with The Hiroshima Bank, Ltd. for financing a part of purchase price of the vessel. The vessel is to be delivered in September 2027.
Also read: Ammonia as marine fuel is becoming reality
IMO regulations expected to boost alternative fuel uptake
In April, the International Maritime Organization (IMO) adopted a phased approach to shift marine fuel use towards low-GHG alternatives and introduced economic incentives for zero or near-zero-emission vessels. Once implemented, this framework is expected to accelerate both the supply of alternative fuels and the adoption of cleaner vessels.
With ammonia emerging as a key zero-emission marine fuel, interest is growing among shipowners, shipbuilders, cargo owners, and others. As a result, the ammonia bunkering sector is also set to expand, with bunkering vessels playing a crucial last-mile role in the fuel supply chain.
Demonstration project
The agreements were concluded to pursue the “Demonstration Project for Bunkering Ammonia as Marine Fuel in Singapore” adopted by the Ministry of Economy, Trade and Industry in Japan as part of the Global South Future-oriented Co-Creation Project (large-scale demonstration in ASEAN member states).
Going forward, with an eye toward the demonstration of ammonia bunkering in Singapore after building the world’s first newbuilding ammonia bunkering vessel (which is to be flagged under the Singapore Registry), efforts will be made to facilitate concrete discussions with the maritime stakeholders, including the port authority in Singapore, the Maritime & Port Authority of Singapore (MPA), and the fuel producers, while obtaining support from the Japanese Government.
Also read: Wärtsilä ammonia engine cuts GHG emissions by 90%
Commercialising ammonia bunkering
Itochu wants to establish a safe offshore bunkering operation of ammonia as marine fuel by way of ship-to-ship transfer through the development and construction of the vessel and demonstration thereof. Then, Itochu seeks to connect first movers in clean ammonia production with first movers in ammonia-fuelled vessels and secure initial demand for ammonia as marine fuel.
The aim is to commercialise the ammonia bunkering business in Singapore and expansion of a similar business model to major maritime transportation points around the world, including Spain (Strait of Gibraltar), Egypt (Suez Canal) and Japan.
In addition, by taking advantage of the expertise and knowledge in the construction of the vessel and the planned demonstration of ammonia bunkering in Singapore, Itochu seeks to contribute to strengthening the competitiveness of Japan’s shipbuilding industry in the construction of ammonia bunkering vessels and the production of ammonia tank plants.
Picture by Itochu Corporation.
Also read: ABS publishes safety insights for ammonia as a marine fuel
