Japan’s Itochu Corporation and Vopak Terminals Singapore signed a non-binding memorandum of understanding (MoU) to jointly study the feasibility of developing ammonia as a source of marine fuel for vessels in Singapore
The joint agreement aims to develop a supply chain for ammonia marine fuel in Singapore and to develop a zero-emissions ship.
Itochu Corporation said it will explore developing an offshore facility such as floating tank and/or fuel supply ship together with subsidiary Itochu Enex and other partners in Singapore. Itochu Enex said it will leverage its experience operating distribution ships for fuel supply to support developing the ammonia fuel supply chain in Singapore.
Vopak will work with Itochu Corporation in the feasibility study to develop an independent, onshore facility to store and handle ammonia with loading and unloading facilities in Singapore by tapping its ammonia storage and handling expertise in its Banyan Terminal in Singapore.
The companies said 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), by 50% by 2050, and to phase them out entirely (zero-emissions) during this century.
Immature technologies like ammonia and hydrogen will require massive research and development investment over many years if they are to be serious alternatives to conventional fuels. In March, Wärtsilä initiated combustion trials using ammonia to test its properties as a fuel and the company plans to install ammonia fuel cells in its platform supply vessel Viking Energy in 2023.
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