Itochu Corporation to Launch World’s First Ammonia Bunkering Vessel by 2027
Japanese trading firm Itochu Corporation has announced its plans to build the world’s first ammonia bunkering vessel, with operations expected to commence by September 2027.
The 5,000 cubic meter vessel will be constructed by Sasaki Shipbuilding Co., Ltd., with the onboard ammonia tank plant being built by Izumi Steel Works Ltd. These agreements were signed by Clean Ammonia Bunkering Shipping Pte. Ltd. (CABS), a special-purpose company wholly owned by Itochu and based in Singapore.
In addition, CABS has secured financing from The Hiroshima Bank, Ltd. to support part of the vessel’s cost. The vessel will be registered under the Singapore flag and will operate from Singapore, a leading bunkering port worldwide.
Itochu has established partnerships with Japanese shipbuilders, classification societies, and fuel providers to advance the development and regulations concerning ammonia-fueled ships.
This project was chosen 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 plans in place to conduct actual bunkering operations once the vessel is completed.
Itochu intends 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 to establish safe offshore ship-to-ship ammonia bunkering and create a reliable supply chain for ammonia-powered vessels.
Ammonia is gaining momentum as a potential zero-carbon emission fuel, leading shipowners, shipbuilders, cargo companies, and fuel suppliers globally to explore the use of ammonia-fueled ships and the necessary infrastructure to support them.
According to Itochu, ammonia bunkering vessels will play a crucial role as the final link in the fuel supply chain, connecting fuel producers directly to the ships.
The company also aims to expand this business model to strategic locations such as the Strait of Gibraltar, the Suez Canal in Egypt, and Japan.
Itochu is driving this initiative under its management policy titled “The Brand-new Deal – Profit opportunities are shifting downstream –,” aiming to increase its contribution to the Sustainable Development Goals (SDGs) through its business operations while remaining responsive to market, societal, and consumer needs.
Reference: itochu