TOKYO, Japan – ITOCHU Corporation has announced a significant stride towards decarbonizing international shipping with the signing of agreements for the construction of a 5,000 m3 ammonia bunkering vessel. This groundbreaking newbuild, poised to be the world’s first dedicated ammonia bunkering vessel, will play a pivotal role in establishing a clean marine fuel supply chain, initially in Singapore, and subsequently expanding globally.
The agreements were formally signed by Clean Ammonia Bunkering Shipping Pte. Ltd. (CABS), a wholly owned Singapore-based specific purpose company of ITOCHU. The shipbuilding contract for the vessel was awarded to Sasaki Shipbuilding Co., Ltd., a Japanese shipyard renowned for its expertise in specialized vessels like chemical and liquefied gas carriers. Concurrently, an agreement was reached with Izumi Steel Works Ltd., Japan’s largest manufacturer of LPG tank plants for vessels, for the construction of the onboard ammonia tank plant. Funding for a portion of the vessel’s purchase price has been secured through a financing agreement with The Hiroshima Bank, Ltd., a prominent financier in the ship finance sector.
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Addressing IMO’s Decarbonization Mandate
This initiative comes as the international shipping industry grapples with the ambitious greenhouse gas (GHG) emission reduction targets set by the International Maritime Organization (IMO). In April of this year, the IMO approved a draft for convention revisions aimed at phasing in low-GHG alternative marine fuels and providing economic incentives for zero-emission or near-zero-emission fuel-powered vessels. With ammonia increasingly recognized as a promising zero-emission marine fuel, the demand for ammonia-fueled vessels and the necessary bunkering infrastructure is rapidly growing. Ammonia bunkering vessels are seen as crucial “last one-mile” facilities in this evolving fuel supply chain, connecting fuel producers to the ships.
Singapore Demonstration Project at the Forefront
The conclusion of these agreements is directly tied to the “Demonstration Project for Bunkering Ammonia as Marine Fuel in Singapore,” a key component of the Ministry of Economy, Trade and Industry in Japan’s “Global South Future-oriented Co-Creation Project.” The vessel, which will be flagged under the Singapore Registry, is expected to be delivered in September 2027. Following its delivery, ITOCHU plans to commence demonstration of ammonia bunkering in Singapore after October 2027. This will involve close collaboration with key maritime stakeholders, including the Maritime & Port Authority of Singapore (MPA), and fuel producers, with ongoing support from the Japanese Government.
Global Expansion and Industry Impact
ITOCHU’s vision extends beyond Singapore. Through the development and operation of this vessel, the company aims to establish safe offshore ship-to-ship ammonia bunkering operations. This is a critical step in the promotion of ITOCHU’s “Integrated Project,” which encompasses both the development of ammonia-fueled vessels and the establishment of a global supply chain for ammonia as marine fuel.
By connecting clean ammonia producers with early adopters of ammonia-fueled vessels, ITOCHU seeks to secure initial demand for ammonia as a marine fuel. The ultimate goal is to commercialize the ammonia bunkering business in Singapore and then replicate this model in other strategic global maritime transportation hubs, such as the Strait of Gibraltar (Spain), the Suez Canal (Egypt), and Japan.
Furthermore, this project is anticipated to significantly contribute to strengthening the competitiveness of Japan’s shipbuilding industry in the construction of ammonia bunkering vessels and the production of ammonia tank plants, areas experiencing burgeoning demand.
Commitment to SDGs and Sustainable Shipping
This endeavor aligns with ITOCHU’s new management policy, “The Brand-new Deal – Profit opportunities are shifting downstream –,” which emphasizes enhancing contributions to the Sustainable Development Goals (SDGs) through business activities. By actively promoting the Integrated Project and accelerating the social implementation of ammonia-fueled vessels, ITOCHU is committed to playing a leading role in the decarbonization of international shipping.
Key Players and Timeline:
- Ship Owner: Clean Ammonia Bunkering Shipping Pte. Ltd. (CABS)
- Shipyard: Sasaki Shipbuilding Co., Ltd. (Head office: Osakikamijima, Toyota-gun, Hiroshima) – Specializes in chemical tankers and liquefied gas carriers.
- Tank Manufacturer: Izumi Steel Works Ltd. (Head office: Takamatsu-city, Kagawa) – Japan’s largest in LPG tank plants for vessels with over 40% market share in small- and medium-sized pressure-type LPG tank plants.
- Financier: The Hiroshima Bank, Ltd. (Head office: Hiroshima-city, Hiroshima) – A leading bank in ship finance.
Project Schedule:
- June 2025: Signing of Agreements for Vessel Construction
- Around September 2027: Delivery of the Vessel
- After October 2027: Demonstration of Ammonia Bunkering in Singapore
About ITOCHU Corporation
The history of ITOCHU Corporation dates to 1858 when the Company’s founder Chubei Itoh commenced linen trading operations. Since then, ITOCHU has evolved and grown over 160 years. With approximately 90 bases in 61 countries, ITOCHU, one of the leading sogo shosha, is engaging in domestic trading, import/export, and overseas trading of various products such as textile, machinery, metals, minerals, energy, chemicals, food, general products, realty, information and communications technology, and finance, as well as business investment in Japan and overseas.
Source ITOCHU Corporation