Japanese trading company ITOCHU Corporation has contracted compatriot Sasaki Shipbuilding to construct a 5,000 cubic meter (cbm) ammonia bunkering vessel and Izumi Steel Works to build an ammonia tank plant that will be loaded onto the vessel.
ITOCHU signed the contracts through its wholly owned Singapore-based specific purpose company, Clean Ammonia Bunkering Shipping (CABS), which also concluded a financing agreement with The Hiroshima Bank for financing a part of the purchase price of the ammonia bunkering vessel.
As explained, the agreements aim to pursue the ammonia bunkering demonstration project 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).
Following the delivery of the “world’s first” ammonia bunkering vessel, which is expected in September 2027 under the Singapore Registry, efforts will be made to facilitate concrete discussions with the maritime stakeholders, including the Maritime & Port Authority of Singapore (MPA) and the fuel producers, while obtaining support from the Japanese Government.
As part of the project, ITOCHU intends to establish an offshore ammonia bunkering operation via ship-to-ship transfer following the development and construction of the vessel.
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Once the bunkering vessel is built, ITOCHU plans to set up a connection between the first movers in clean ammonia production and the first movers in the ammonia-fueled vessels sector, and secure initial demand for ammonia as a marine fuel.
The goal is the commercialization of the ammonia bunkering business in Singapore and the expansion of a similar business model to major maritime transportation points around the world, including Spain (Strait of Gibraltar), Egypt (Suez Canal), and Japan.