ITOCHU inks deal for 5,000 cubic metre ammonia bunkering vessel

Another agreement was signed for an ammonia tank plant.

ITOCHU Corporation has inked a shipbuilding contract with Sasaki Shipbuilding Co., Ltd. for the construction of a 5,000 cubic metre ammonia bunkering vessel.

In a statement, ITOCHU said another agreement was signed with Izumi Steel Works Ltd. for the construction of an ammonia tank plant that will be loaded onto the bunkering vessel.

These Agreements were signed by Clean Ammonia Bunkering Shipping Pte. Ltd., a wholly owned Singapore-based specific purpose company of ITOCHU.

The deals aim to pursue an ammonia bunkering 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.

The vessel will be flagged under the Singapore Registry and is expected to be delivered in September 2027.

“Going forward, with an eye toward the demonstration of ammonia bunkering in Singapore after building the world’s first newbuilding ammonia bunkering vessel, 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, whilst obtaining support from the Japanese Government,” ITOCHU said.

Following this development, the company will establish an offshore bunkering operation of ammonia as a marine fuel by way of ship-to-ship transfer.

By utilising the vessel, ITOCHU said it will establish a connection between the first movers in clean ammonia production and the first movers in the ammonia-fueled vessels. It will also secure initial demand for ammonia as marine fuel, aiming at the commercialisation of ammonia bunkering business in Singapore and the expansion of a similar business model to major maritime transportation points.