Tokyo-based ITOCHU Corporation has announced that it recently signed a shipbuilding contract for the construction of a 5,000 m3 ammonia bunkering vessel with Sasaki Shipbuilding Co., Ltd. and an agreement regarding the construction of an ammonia tank plant that will be loaded onto the Vessel with Izumi Steel Works Ltd. The delivery target for the world’s first newbuilding ammonia vessel is September, 2027.
These Agreements marking a significant maritime decarbonization initiative were signed by Clean Ammonia Bunkering Shipping Pte. Ltd. a wholly owned Singapore-based subsidiary of ITOCHU. CABS has concluded a financing agreement with The Hiroshima Bank, Ltd. for financing a part of purchase price of the vessel.
ITOCHU indicated it will establish a safe offshore bunkering operation of ammonia as marine fuel by way of ship-to-ship transfer through the development and construction of the vessel. Then, by utilizing the vessel, ITOCHU will establish connection between the first movers in clean ammonia production and the first movers in the ammonia-fueled vessels and secure initial demand for ammonia as marine fuel. It will seek to expand the Singapore business model to major maritime transportation points around the world, including Spain (Strait of Gibraltar), Egypt (Suez Canal) and Japan.
(Artist rendering of vessel from ITOCHU)