Itochu To Launch World’s First Ammonia Bunkering Vessel By 2027

Japanese trading firm Itochu Corporation has signed contracts to build the world’s first ammonia bunkering vessel, aiming to start its operation by September 2027.

The 5,000 cubic meter vessel will be constructed by Sasaki Shipbuilding Co., Ltd., and the onboard ammonia tank plant will be built by Izumi Steel Works Ltd. Both agreements were signed by Clean Ammonia Bunkering Shipping Pte. Ltd. (CABS), a special-purpose company wholly owned by Itochu and based in Singapore.

Additionally, CABS signed a financing agreement with The Hiroshima Bank, Ltd. to support part of the vessel’s cost. The ship will be registered under the Singapore flag, with operations based in Singapore, the world’s leading bunkering port.

Itochu has already formed partnerships with Japanese shipbuilders, classification societies, and fuel providers to work on ammonia-fueled ship development and regulations.

This project was selected by Japan’s Ministry of Economy, Trade and Industry (METI) under its Global South Future-oriented Co-Creation Project, which supports large-scale demonstrations in ASEAN countries.

The vessel will be part of the Demonstration Project for Bunkering Ammonia as Marine Fuel in Singapore, with preparations underway to carry out actual bunkering operations once the vessel is built.

Itochu plans to collaborate closely with maritime authorities in Singapore, including the Maritime and Port Authority of Singapore (MPA), as well as with ammonia producers and other shipping stakeholders. The goal is to establish safe offshore ship-to-ship ammonia bunkering and set up a reliable supply chain for ammonia-powered vessels.

Ammonia is one of the key fuels being considered in this shift due to its potential for zero carbon emissions. As interest grows, shipowners, shipbuilders, cargo companies, and fuel suppliers worldwide are exploring the use of ammonia-fueled ships and the infrastructure needed to support them.

According to Itochu, ammonia bunkering vessels will be crucial as they form the last-mile link in the fuel supply chain, connecting fuel producers directly to the ships.

The company also has plans to expand this business model to other strategic locations, including the Strait of Gibraltar, the Suez Canal in Egypt, and Japan.

Itochu is promoting this effort under its management policy titled “The Brand-new Deal – Profit opportunities are shifting downstream –.” The company said it is working to increase its contribution to the Sustainable Development Goals (SDGs) through its business actions while staying responsive to the needs of the market, society, and consumers.

Reference: itochu

Source: Maritime Shipping News