Japanese corporation Itochu has signed a shipbuilding contract for the construction of a 5,000m3 ammonia bunkering vessel with Sasaki Shipbuilding and an agreement regarding the construction of the ship’s ammonia tank by Izumi Steel Works.
The agreements were signed by Clean Ammonia Bunkering Shipping (CABS), a wholly owned Singapore-based subsidiary of Itochu. CABS has concluded an agreement with the Hiroshima Bank for part-financing the construction.
With ammonia expected to be one of the preferred zero-emission marine fuels by ship owners, shipbuilders, cargo owners and other maritime stakeholders, interest is seen to be growing in the development of ammonia-fuelled vessels. In particular, ammonia bunkering vessels are drawing attention globally as an important part of the fuel supply chain.
The agreements were signed under 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. Efforts will be made to facilitate concrete discussions with maritime stakeholders, including the port authority in Singapore, the Maritime & Port Authority of Singapore (MPA), and fuel producers, with support from the Japanese Government.
Itochu intends 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 subsequent demonstrations. By use of the vessel, Itochu will help commercialise the ammonia bunkering business in Singapore and expansion of similar business model to other maritime transportation points around the world, such as the Strait of Gibraltar, Suez Canal and Japan.
Image: Rendering of Itochu ammonia bunker vessel (source: Itochu Corporation)
