Budget Grant for the "Global South Future-Oriented Co-Creation Project"

Maritime transportation of ammonia has played a central role in this trade, with STS transfers already occurring between ammonia carriers. 

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Shingo Ueno), alongside Kawasaki Kisen Kaisha, Ltd. (Head Office: Chiyoda-ku, Tokyo; CEO: Takenori Igarashi) and Nippon Yusen Kabushiki Kaisha (Head Office: Chiyoda-ku, Tokyo; President: Takaya Soga) have jointly applied to run a demonstration project related to the supply of ammonia fuel for vessels in Singapore (hereinafter the "Demonstration Project"), with Sumitomo Corporation serving as the coordinating company. 

The Demonstration Project

The Demonstration Project has been selected for the FY2024 Supplementary Budget Grant for the "Global South Future-Oriented Co-creation Project (Large-scale Demonstration – ASEAN Member States: 2nd Call for Proposals)" funded by the Ministry of Economy, Trade and Industry through the AEM-METI Economic and Industrial Cooperation Committee (AMEICC), effective March 23, 2026.

The future commercialization of ammonia

The Demonstration Project is designed to establish the 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*1 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.

Ammonia as a maritime fuel for vessels

At present, around 20 million tons of ammonia are being traded each year globally, 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.

A large-scale initiative,

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.

Related : Singapore port traffic rises in October as vessel and container volumes increase

Singapore is the world’s largest bunkering hub.

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.

*1 The process of supplying fuel to a vessel for the purpose of propulsion and power on voyages is referred to as "bunkering," and the vessel used to supply fuel to a receiving vessel is called a "bunkering vessel."

 About : Sumitomo Corporation

Drawing on more than 60 years' experience in providing a stable supply of maritime fuels worldwide, Sumitomo Corporation will advance the development of supply chains for next-generation fuels, including ammonia. Working closely with maritime stakeholders and government authorities, the company aims to establish a reliable fuel supply system that meets customer needs and contributes to decarbonization in the shipping industry.

 About : Kawasaki Kisen Kaisha, Ltd.

Kawasaki Kisen Kaisha brings extensive expertise in the handling and supply of liquefied gas fuels, gained through its past track record handling LNG bunkering operations in Singapore and Japan. In this project, the company will apply its operational expertise, particularly in the technical management of bunkering vessels, to support the safe adoption of ammonia bunker fuel, contributing to maritime sector decarbonization goals.

 About : Nippon Yusen Kabushiki Kaisha

Nippon Yusen Kabushiki Kaisha is leading global initiatives in the utilization of ammonia fuel, including the development and operation of the world's first ammonia-fueled tugboat and its involvement in the design of ammonia-fueled bunkering vessels intended for operation in Singapore. Leveraging advanced handling technologies and operational experience, the company will help establish a safe and efficient ammonia supply system, reinforcing its leadership in driving the decarbonization of global shipping.

Source : Press Release received by Maritime Tickers

#Nippon Yusen Kabushiki Kaisha #Singapore #bunkering vessel # Demonstration Project#Ammonia #Sumitomo Corporation #largest bunkering hub #Takenori Igarashi