Itochu and Partners Ink MOU for Ammonia-Fueled Bulk Carriers

ITOCHU Corporation joins forces with the Maritime and Port Authority of Singapore (MPA), Nihon Shipyard, and Nippon Kaiji Kyokai to collaborate on a crucial step towards ammonia-fueled shipping. This Memorandum of Understanding (MoU) was signed on July 19th 2024. This focuses on a joint study to define design and safety specifications for ammonia-fueled vessels currently under development by ITOCHU and its partners. This collaborative effort signifies a significant push for the adoption of ammonia as a viable marine fuel solution.

The Memorandum of Understanding (MoU) outlines the collaboration for building 200,000 deadweight ton class bulk carriers with ammonia dual-fueled engines at Nihon Shipyard. This initiative follows the Alternative Design Approval process under the "Integrated Project for Development and Social Implementation of Ammonia-Fueled Ships," which was part of the "Green Innovation Fund Project / Next Generation Ship Development / Development of Ammonia-Fueled Ships" announced by the New Energy and Industrial Technology Development Organization (NEDO) in October 2021. The project aims to advance the commercial viability of ammonia-fueled vessels through innovative design and sustainable technology.

The MoU also includes provisions for specifying the requirements needed for ammonia bunkering operations in Singapore. This step is crucial for the successful commercialization of ammonia-fueled ships, ensuring that all parties involved can align on technical and regulatory aspects. By addressing these specifications, the collaboration aims to enhance the feasibility and adoption of ammonia as a cleaner marine fuel, contributing to broader environmental and sustainability goals within the shipping industry.

Ammonia is emerging as a promising marine fuel for the decarbonization of the maritime industry. Engaging with government bodies to define the specifications for ammonia-fueled vessels is crucial for their successful social implementation. As a signatory to the MoU, the Maritime and Port Authority (MPA)—the regulatory agency managing the world’s busiest bunkering hub—will evaluate and offer feedback on the designs of ammonia-fueled ships to ensure their safe and efficient operation.

ITOCHU has introduced a forward-looking management policy titled “The Brand-New Deal: Profit Opportunities are Shifting Downstream,” which emphasizes its commitment to enhancing contributions to the Sustainable Development Goals (SDGs). This policy is designed to align the company’s business activities with the broader goals of achieving a decarbonized society and fostering sustainable local communities. By actively engaging with all stakeholders—ranging from the market and society to consumers—ITOCHU aims to reduce its environmental impact and support global sustainability efforts. The policy underscores a proactive approach in listening to stakeholder needs while advancing initiatives that mitigate the burden on the global environment.