Itochu and Peninsula to develop ammonia bunkering in Spain

The duo plans to establish ammonia bunkering in Algeciras to cater to future ammonia demand around the Gibraltar Strait.

PHOTO: View from the Rock of Gibraltar, UK to Algeciras, Spain. Getty Images

Japanese trading firm Itochu seeks to draw on Peninsula's position in the Gibraltar market to establish an ammonia bunkering and supply chain in the region.

Peninsula already supplies bunker fuels around Gibraltar, as well as in other global locations.

In July 2022, Itochu partnered with various companies to develop an ammonia supply chain between Japan, South Korea and other countries. Through partnerships it aims to be able to bunker an upcoming fleet of ammonia-powered vessels, which it is developing for itself and other partners.

The company is developing a 200,000 dwt ammonia-fuelled newcastlemax bulk carrier with the Japanese shipping firm Kawasaki Kisen Kaisha’s (K Line). The vessel is expected to be delivered by 2026.

Itochu views ammonia as a fuel that can curb greenhouse gas emissions from shipping. Procuring ammonia and developing bunkering infrastructure are crucial steps to increase uptake from ships, it asserts.

It is also an partner of the Maritime and Port Authority of Singapore (MPA), which seeks to establish ammonia bunkering in Singapore by 2026.

The company is looking to enter into similar partnerships to establish ammonia bunkering in other locations as well, including ports in Europe, Panama and the Middle East.

By Nithin Chandran

Please get in touch with comments or additional info to news@engine.online