This groundbreaking initiative, set to culminate in the world's first newbuild of its kind, aims to establish a robust supply chain for ammonia as a zero-emission marine fuel, beginning with a demonstration project in Singapore.
ITOCHU Corporation, a leading Japanese trading house, has announced a significant stride towards maritime decarbonization with the signing of a shipbuilding Contract for a 5,000 m³ ammonia bunkering vessel.
The agreements, signed by ITOCHU's wholly owned Singapore-based specific purpose company, Clean Ammonia Bunkering Shipping Pte. Ltd. (CABS), involve Sasaki Shipbuilding Co., Ltd. for the vessel's construction and Izumi Steel Works Ltd. for the ammonia tank plant. Additionally, CABS has secured a financing agreement with The Hiroshima Bank, Ltd., known for its expertise in ship finance.
The ordered vessel, which will be flagged under the Singapore Registry, is anticipated to be delivered in September 2027. Following its delivery, a demonstration of ammonia bunkering will commence in Singapore after October 2027. This demonstration is a key component of the "Demonstration Project for Bunkering Ammonia as Marine Fuel in Singapore," adopted by Japan's Ministry of Economy, Trade and Industry as part of the Global South Future-oriented Co-Creation Project. ITOCHU intends to engage in concrete discussions with key maritime stakeholders, including the Maritime & Port Authority of Singapore (MPA) and fuel producers, with support from the Japanese Government.
ITOCHU's strategy extends beyond the Singapore demonstration. By establishing safe offshore bunkering operations via ship-to-ship transfer, the company aims to connect pioneers in clean ammonia production with early adopters of ammonia-fueled vessels, thereby stimulating initial demand for ammonia as a marine fuel. The ultimate goal is the commercialization of the ammonia bunkering business in Singapore, followed by an expansion of this model to other critical maritime hubs globally, such as the Strait of Gibraltar in Spain, the Suez Canal in Egypt, and various locations within Japan.
Furthermore, ITOCHU emphasizes that its expertise gained from the construction and demonstration of this vessel will significantly contribute to enhancing the competitiveness of Japan's shipbuilding industry, particularly in the rapidly growing market for ammonia bunkering vessels and tank plants. This initiative aligns with ITOCHU's new management policy, "The Brand-new Deal – Profit opportunities are shifting downstream –," which focuses on increasing contributions to Sustainable Development Goals (SDGs) through its business activities. The company is committed to promoting its "Integrated Project," encompassing the development of ammonia-fueled vessels and the establishment of a global supply chain for marine ammonia, to accelerate the decarbonization of international shipping.
