By NYK Line.
Sumitomo Corporation, Kawasaki Kisen Kaisha, Nippon Yusen Kabushiki Kaisha, have jointly applied to run a demonstration project to the supply of ammonia fuel for vessels in Singapore. Sumitomo Corporation will be the coordinating company.
The demonstration project has been selected for the FY2024 Supplementary Budget Grant for the “Global South Future-Oriented Co-creation Project, funded by the Singapore Ministry of Economy, Trade and Industry.
The Demonstration Project is designed to establishthe groundwork for the future commercialization of ammonia as a next-generation clean fuel. As part of this initiative, the project partners will conduct a trial supply of ammonia fuel using the “Ship-to-Ship” (STS) transfer method, employing a bunkering vessel*that complies with the requirements set by the Singapore Government. This demonstration project marks the first demonstration of ammonia bunkering by the collaborators. Through this demonstration, the collaborators aim to develop robust safety standards and refine operational procedures, paving the way for the eventual launch of commercial ammonia bunkering services in Singapore.
At present, around 20 million tons of ammonia are being traded globally each year, primarily for use in fertilizers and chemical production. Maritime transportation of ammonia has played a central role in this trade, with STS transfers already occurring between ammonia carriers. However, the supply and utilization of ammonia as a maritime fuel for vessels introduce new complexities. Given ammonia’s toxic properties, its use requires strict safety measures, specialized equipment and the development of internationally agreed safety standards and operational guidelines.
As a large-scale initiative, the Demonstration Project will be critical in overcoming the technical and operational challenges that must be addressed before commercial services can be fully realized. Meeting safety standards and developing operational guidelines is expected to deliver industry-wide benefits, serving as benchmarks of public interest for the safe adoption of ammonia as a bunker fuel. Given the substantial costs associated with the demonstration phase, the financial support from this grant will be pivotal in ensuring the project’s viability and successful execution.
Singapore is the world’s largest bunkering hub. With its well-developed port infrastructure and operational expertise, the country offers a practical testing environment for the commercialization of ammonia fuel. Through the Demonstration Project, feasibility studies will assess supply facilities while managing operational risks, establishing procedures, and evaluating environmental and safety factors to confirm the viability of safe, sustainable ammonia fuel supply.
