Industry players to develop and commercialize ammonia-fueled bulkers

Several Japanese companies and a German engine manufacturer have signed a memorandum of understanding (MOU) to work together to commercialize ammonia-fueled bulk carriers.

The signatories of the MOU are shipping companies K Line and NS United Kaiun Kaisha, sogo shosha ITOCHU Corporation, engine specialist MAN Energy Solutions, as well as shipbuilders Mitsui E&S and Nihon Shipyard.

Ammonia is advancing as a key zero-emission marine fuel solution and will greatly contribute to reducing greenhouse gas (GHG) emissions if it becomes available for common use.

The development and commercialization of ammonia dual-fueled engines using ammonia as their primary fuel is essential for the widespread use of ammonia-fueled ships. In particular, the ensuring of safety in the handling of toxic ammonia and the confirming of stable operations at sea are important milestones on the road to social implementation.

As informed, the MOU is based on the premise that 200,000 deadweight ton class bulk carriers to be built by Nihon Shipyard will be equipped with ammonia-fueled engines being developed by MAN as a pilot project prior to commercialization, and that the necessary operational data will be collected after the delivery of the ships for the commercialization of ammonia-fueled engines and ammonia-fueled ships in cooperation with other parties involved.

ITOCHU, K Line and NS United will be in charge of the crew development and ship management for operation of 200,000 dwt class bulk carriers as well as the collection of operation data.

What is more, Mitsui E&S will manufacture and supply the world’s first two-stroke MAN B&W ammonia dual-fueled engine and develop and supply the related system.

The signing of this MOU is seen as an important milestone in the implementation of ammonia-fueled ships and an important step in the ongoing implementation of the integrated project being facilitated by ITOCHU.

The partners will proceed with the development of the ammonia-fueled engines and ships based on this MOU. They aim to begin its social implementation once it is ready under the ‘Integrated project for the development and social implementation of ammonia-fueled ships’ selected by the New Energy and Industrial Technology Development Organization (NEDO) in October 2021 to be a part of its publicly solicited Green Innovation Fund Project/Development Project for Next-Generation Ships/Development of Ammonia Fueled Ships.