ITOCHU Corporation has executed a Memorandum of Understanding (MoU) with Peninsula Petroleum on the joint development of ammonia bunkering in Spain.
he MoU between ITOCHU and Peninsula intends to build a worldwide ammonia supply network and develop ammonia-fueled ships. The initiative entails encouraging the establishment of an ammonia bunkering facility in Algeciras, Spain, as well as encouraging the development of bunkering hubs in other European ports, Panama, the Middle East, Japan, and other countries.
Peninsula will contribute to the growth of the Algeciras bunkering centre. Meanwhile, ITOCHU will develop, own, and finance ammonia-fueled ships, work with shippers to decarbonize international logistics, buy fuel ammonia, and engage in low carbon or green ammonia manufacturing initiatives.
Ammonia is regarded as one of the promising alternative fuels for the maritime industry by many. For instance, Dr. John Kokarakis, Vice President Technology & Business Development, Bureau Veritas, highlighted ammonia as a viable option for carbon-free shipping at the 2020 SAFETY4SEA Limassol Forum. Dr. Kokarakis addressed the benefits of ammonia on the one hand and the obstacles on the other, emphasising that the issues associated with ammonia may be handled by technological and regulatory solutions. His presentation can be found here.