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Comment Sustainability

Singapore-based consortium to develop ammonia fuels

By Mary Page Bailey |

Itochu Corp. (Tokyo), ITOCHU ENEX Co., Vopak Terminals Singapore Pte Ltd, Pavilion Energy Singapore Pte. Ltd., Mitsui O.S.K. Lines Ltd. (MOL) and Total Marine Fuels are pleased to announce that the parties have entered into a memorandum of understanding (MOU) on the joint development study of ammonia as a new marine fuel in Singapore.

Itochu, having executed the MOU with Vopal on June 2020 which has expertise in handling ammonia at their Banyan Terminal, Singapore, takes a remarkable step into further development of the ammonia supply chain in Singapore, by inviting Pavilion Energy, MOL and Total, which have high expertise and experience at each business segment, and are engaging in LNG bunkering business in Singapore. Great contribution to the project will be expected through their participation.

With international momentum towards the transition to a decarbonized society since the Paris Agreement came into effect in 2016, the International Maritime Organization (IMO) adopted a strategy for the reduction of greenhouse gas (GHG) emissions within the shipping industry in 2018. This strategy sets targets to reduce CO2 emissions per transport work – as an average across international shipping – by at least 40% by 2030 (compared to 2008 levels), and to reduce total annual GHG emissions by at least 50% by 2050, while pursuing efforts to phase them out entirely (zero-emissions) during this century. In order to achieve these goals, the early adoption of ammonia as a suitable zero emission, alternative marine fuel is one of the key elements.

The purpose of the MOU is not limited to expansion and acceleration of the joint development of an ammonia fuel supply chain, including an on-shore and/or off-shore facility and an ammonia bunkering ship in Singapore. It is also a key element of an integrated project that includes the development of ammonia fueled ship by Itochu with other partners. Itochu intends to promote initiatives to reduce GHGs with the cooperation of domestic and overseas clients, as well as the relevant government agencies. Itochu, for its part, will aim to accelerate the development of sustainable energy systems through these initiatives, ensure “contributions to the SDGs and improved efforts” as one of the basic policies of its new medium-term management plan, and achieve a low-carbon society.

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