Acceleration of Study on establishing ammonia supply chain for bunkering in Singapore and Receipt of Approval in Principle for Ammonia bunkering vessel

May 13, 2022

The Consortium, consisting 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, is pleased to announce the addition of Kawasaki Kisen Kaisha, and Maritime and Port Authority of Singapore to the Consortium, and the receipt of Approval in Principle from ABS for the design of an ammonia bunkering vessel.

During the Singapore Maritime Week on 6 April, a memorandum of understanding (“MOU”) was signed by the Consortium with “K” LINE and MPA to develop the ammonia bunkering ecosystem at the Port of Singapore, the largest bunkering port in the world.

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.

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 realize 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. Ammonia, which does not emit CO2 when burned, is expected to be one of the most promising alternative marine fuel that has the potential to make significant contributions to reducing GHG emissions in the shipping industry.

■Signing Ceremony

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(a) FML
Mr. Kishore Rajvanshy, Managing Director of Fleet Management Limited
“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.”

(b) Keppel Offshore & Marine
Mr. Chris Ong, CEO of Keppel Offshore & Marine
“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.”

(c) Center
Mr. Bo Cerup-Simonsen, CEO of Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping
”Close collaboration between public and private sector is crucial in order to decarbonize 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.”

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

(e) “K”LINE
Mr. Yukikazu Myochin, President & CEO, Kawasaki Kisen Kaisha, Ltd.
“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 challenge towards decarbonization 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.’’

(f) Sumitomo Corporation
Mr. Koji Endo, General Manager of Energy Division, Sumitomo Corporation
“We see ammonia as an important future fuel to contribute to the realization of a decarbonized 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.’’