Six industry partners, including Japanese entities MOL, ITOCHU Corporation, ITOCHU ENEX Co., Ltd., Singapore’s Vopak Terminals and Pavilion Energy, as well as French energy firm Total, have inked an MoU for a joint development study on ammonia fuel supply chain in Singapore.
Under the partnership, MOL will promote the development of an offshore facility, such as floating storage unit and/or ammonia bunkering ship, and safety guidelines of ammonia bunkering, by making use of its experience and expertise in building and owning LNG fuel supply vessels.
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This is in line with the company’s plans to update the “Environmental Vision 2.0” by this September with the aim of achieving net-zero emissions by 2050 and formulate a long-term GHG reduction roadmap for the MOL fleet. In this context, MOL will accelerate the introduction of alternative bunker fuel vessels such as LNG and ammonia as well as the investment in renewable energy businesses.
On its part, ITOCHU will lead the formation of partnerships in Japan and overseas, by making use of networks with various industries/companies related to the ammonia fuel supply chain, by owning and operating ammonia fueled ships, and by jointly developing a facility for supplying ammonia fuel for ships. In addition, ITOCHU ENEX will use their experience in the operation of marine fuel supply in Japan and Singapore.
VOPAK will promote the development of an independent, on-shore facility for the storage and handling of ammonia with loading/unloading facilities in Singapore by tapping its ammonia storage and handling expertise in its Banyan Terminal in Singapore.
Furthermore, Pavilion Energy will leverage each other’s experience and expertise, especially in the operation of LNG as a marine fuel in Singapore. Finally, Total will promote the development of bunkering infrastructures by making use of their experience and expertise in LNG as a marine fuel.
Ammonia has been lately discussed as an attractive fuel alternative as shipping is struggling to reduce its emissions in line with IMO and Paris Agreement goals. The big advantage of ammonia is that it can be stored in higher temperatures in a liquid form under atmospheric pressure. It is a mildly cryogenic liquid.
Although there are many advantages to using ammonia as a marine fuel, there are also many challenges around which need to be controlled by technical and regulatory measures in order for ammonia to become a feasible solution for a carbon-free shipping economy, experts at the latest GREEN4SEA Forum agreed.