Study establishing ammonia supply chain for bunkering and AiP for Ammonia bunkering vessel

Press Release: 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 (“ABS”) (collectively the “Consortium”), is  pleased to announce the addition of Kawasaki Kisen Kaisha, Ltd.(“K”LINE) and Maritime and  Port Authority of Singapore (“MPA”) to the Consortium, and the receipt of Approval in Principle  (“AiP”) 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.

 

 

Executive Summary of Phase 1 – NH3 Bunkering in Singapore Joint Feasibility Study Summary of Phase1

 

 

 

(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.’’

 

Header image: Ammonia Bunkering Vessel

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