Itochu, Orascom collaborate to develop ammonia bunkering in Egypt
Japanese corporation Itochu has partnered with Egyptian engineering firm Orascom to jointly develop ammonia bunkering in the Suez Canal.
PHOTO: Ships passing through the Suez Canal. Getty Images
Under the agreement, both companies intend to establish a global ammonia supply chain by building an ammonia bunkering hub in Egypt’s Suez Canal, which is a crucial location for international maritime logistics.
Itochu’s growing interest in ammonia as marine fuel
Itochu’s ammonia bunkering initiatives encompass the development of ammonia bunkering in Singapore, Spain and now the Suez Canal.
To kickstart the development, in 2021, Itochu signed a memorandum of understanding (MoU) with energy companies Pavilion Energy and TOTAL, and shipping company Mitsui O.S.K. Lines (MOL) to develop ammonia as marine bunker fuel in Singapore.
This year, the company collaborated with global bunker supplier Peninsula to establish an ammonia bunkering and supply chain in the Mediterranean region (the Gibraltar Strait and Spain).
The company has plans to develop ammonia bunkering hubs in “various European ports, the Panama Canal, Japan and other key areas in the international maritime logistics network.”
As part of the entire supply chain, Itochu also plans to develop, finance and own “ammonia-fueled ships including bulk carriers and container ships.”
In September, Itochu inked a deal with seven other companies to study ammonia bunkering safety for an ammonia-fuelled container ship.
Itochu is a founding member of the Itochu Consortium which was formed in 2021 to study ammonia as an alternative marine fuel.
Its efforts also include “collaborating with shippers committed to decarbonizing international logistics, developing ammonia bunkering hubs, fuel ammonia procurement and participating in low carbon or green ammonia production projects,” Itochu says.
By Tuhin Roy
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