The Japanese conglomerate Itochu wants to position itself as a driver in the “green” transformation of the logistics chain with the first ammonia bunker ship.
The listed company announced today that it has signed a shipbuilding contract for a bunker vessel with an ammonia capacity of 5,000 m3. The order remains “in the country” and was awarded to Sasaki Shipbuilding.
A separate contract was negotiated for the tank system itself – it will be supplied by Izumi Steel Works, another Japanese company. The official contractual partner is Clean Ammonia Bunkering Shipping, a wholly-owned subsidiary of Itochu based in Singapore.
Last but not least, a financing agreement has also already been signed: Hiroshima Bank is to finance an unspecified portion of the purchase price – which has also not been disclosed.
The new building is to be registered under the Singapore flag. Delivery is currently scheduled for September 2027. Ultimately, the goal is to commercialize the ammonia bunkering business in Singapore and expand a similar business model to major shipping points around the world, including Spain (Strait of Gibraltar), Egypt (Suez Canal) and Japan.
“As ammonia is expected to be used as a zero-emission marine fuel among alternative fuels, many interested parties, including ship owners, shipbuilders, cargo owners and other maritime transportation stakeholders, are considering the use of ammonia-powered vessels and promoting their development,” Itochu explained the project in a statement. “Ammonia bunker vessels in particular are attracting global attention as important facilities in the fuel supply chain that play the role of the last mile,” the Japanese added.
The agreements were concluded to continue a demonstration project for ammonia bunkering in Singapore, which was adopted by the Japanese Ministry of Economy, Trade and Industry as part of the Global South Co-Creation Project. Concrete discussions with “maritime stakeholders”, including the Singapore Port Authority and fuel producers, are now to follow.
