Sumitomo Corporation and Keppel FELS, a wholly-owned subsidiary of Keppel Offshore & Marine, have signed a Memorandum of Understanding to explore the feasibility and implementation of various ammonia fuel applications in Singapore.

Through this MOU, Sumitomo Corporation and Keppel O&M will work on the implementation of ammonia bunkering in Singapore, with the aim to commence commercial operations in the mid-2022s. Sumitomo Corporation and Keppel O&M will accelerate the development of an ammonia bunkering vessel in coordination with the relevant authorities, expediting the implementation of ammonia bunkering in Singapore and contributing to the realization of zero carbon shipping. Sumitomo Corporation and Keppel O&M will also work to expand the ammonia value chain in Singapore.

Hajime Mori, Energy Innovation Initiative Director of Sumitomo Corporation, said, “We are delighted to cooperate not only on Ammonia bunkering but Ammonia business opportunities in Singapore with Keppel O&M. In line with our basic environment policy that aims to make the Sumitomo Corporation Group carbon neutral in 2050, we would like to pursue this business with Keppel O&M group to achieve our common goal.”

Tan Leong Peng, Managing Director (New Builds), Keppel O&M, said, “We are pleased to extend our collaboration with Sumitomo Corporation which will deepen Keppel O&M’s decarbonisation efforts. Keppel O&M is working with its partners and leveraging its engineering expertise, bunkering experience, and new build capabilities to develop the ammonia bunkering ecosystem for the marine industry. We are also applying our research in ammonia to advance adjacent solutions in green energy generation. This is in line with Keppel’s Vision 2030, which includes seizing opportunities in new energy.”

Ammonia, a compound of hydrogen and nitrogen, emits no carbon dioxide when combusted, and therefore has long been considered as a next-generation fuel for thermal power generation and large ocean-going vessels. Ammonia is also expected to play a role as an energy carrier for hydrogen since it is easier to liquefy and transport than hydrogen.