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MOU signed to develop ammonia bunkering in Singapore

17 May 2022

Note: The following article was edited on 27 May 2022 due to editorial corrections.

Kawasaki Kisen Kaisha, Ltd.(“K” LINE) on Friday (13 May) said it has signed a memorandum of understanding (MOU) on 6 April with a consortium and the Maritime and Port Authority of Singapore (MPA) to develop the ammonia bunkering ecosystem at the Port of Singapore. 

The consortium consists of A.P. Moller – Maersk A/S, Fleet Management Limited, Keppel Offshore & Marine, Maersk Mc-Kinney Moller Center for Zero Carbon Shipping, Sumitomo Corporation and American Bureau of Shipping (ABS). 

The consortium has also recently received an Approval in Principle (“AiP”) from ABS for the design of an ammonia bunkering vessel.

This follows a feasibility study jointly launched by the consortium in March 2021 to develop an ammonia bunker supply chain in Singapore. 

In the past year, the consortium identified potential ammonia supply sources and indicative costs, as well as undertook the preliminary design and cost estimation for critical infrastructure, such as ammonia storage tanks and bunkering vessels, leading to the AiP from ABS for the bunker vessel design.

MPA and “K” LINE join the consortium with A.P. Moller - Maersk A/S, Keppel Offshore & Marine, Maersk Mc-Kinney Moller Center for Zero Carbon Shipping and ABS.

With the addition of “K” LINE and MPA as new members, the parties will build on the current findings and begin development works to establish an integrated supply chain, with the goal to commence ammonia bunkering by 2030.

The parties will continue to seek cooperation with various stakeholders of the maritime industry and relevant Singaporean ministries and agencies to realise the world’s first ammonia fuel supply chain.

These developments are in line with the International Maritime Organization’s (IMO) initial strategy to halve greenhouse gas (GHG) emissions within the shipping industry by 2050 compared to 2008 levels. 

MOU signed to develop ammonia bunkering in Singapore

Kishore Rajvanshy, Managing Director of Fleet Management Limited said: “It has been great collaborating with our partners over the past year. We’re very excited for this next phase where the focus is on the development of ammonia bunkering, including the design of the vessel and the processes and procedures that will make the use of ammonia as a marine fuel a reality.”

Keppel Offshore & Marine Mr. Chris Ong, CEO of Keppel Offshore & Marine said: “We are pleased to partner the consortium and pioneer the development of green infrastructure such as ammonia bunkering vessels. Leveraging our in-depth engineering and shipbuilding experience as well as LNG bunkering expertise, we are able to contribute to a holistic range of low carbon solutions, such as ammonia as a marine fuel, that will reduce carbon emission and drive the industry’s energy transition.”

Bo Cerup-Simonsen, CEO of Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping said: ”Close collaboration between public and private sector is crucial in order to decarbonise the maritime industry by 2050. Safe handling of ammonia in ports and onboard vessels is a perfect example of an area that requires effective collaboration between multiple parties as operational, safety, environmental and regulatory issues must be solved in parallel. With MPA onboard we have optimal conditions for a large scale demonstration to support the development guidelines, safety frameworks and standards for the ammonia fuel pathway.”

Georgios Plevrakis, ABS Vice President of Global Sustainability said:  “Ammonia is a fuel with significant potential as a solution for shipping companies looking to decarbonise their operations. ABS is committed to supporting its safe adoption by the industry. We are proud to be able to use our industry-leading insight to support our partners with this landmark project.”

Mr. Yukikazu Myochin, President & CEO, Kawasaki Kisen Kaisha, Ltd. said: “We are proud to participate in this innovative project in Singapore as a world class bunkering hub and play a crucial role to cope with common challenges towards decarbonisation of global shipping. We believe the collaboration with leaders in maritime industry under this MOU will contribute to develop ammonia bunkering in Singapore and the attainment of Approval in Principle for ammonia bunkering vessel is a remarkable milestone in our journey to decarbonise global shipping.’’

Mr. Koji Endo, General Manager of Energy Division, Sumitomo Corporation said: “We see ammonia as an important future fuel to contribute to the realisation of a decarbonised society. Through the close collaboration among like-minded partners in the past year, we have gained not only AiP for the Ammonia Bunkering Vessel but immense insights, both technical and commercial, on the key drivers and challenges to establish an end-to-end supply chain for ammonia bunkering. Leveraging on these insights, and with the addition of strong partners like MPA and “K”LINE to the MOU, we are confident that we can meaningfully progress the development works and target to be among the first to commence ammonia bunkering business in Singapore.’’

Related: SMW 2022: MPA inks collaborations to accelerate maritime decarbonisation
Related: Singapore: MPA and Yara Intl in Ammonia-fuelled tanker Joint Development Project
Related: Singapore: Players in feasibility study for first green e-methanol plant in S.E.A.
Related: MPA blueprint prepares marine fuels sector for multi-fuel bunkering transition


Photo credit: Kawasaki Kisen Kaisha, Ltd.
Published: 17 May, 2022

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