Ammonia could be the bunker fuel of the future. File Image / Pixabay
Global storage operator Vopak has signed a memorandum of understanding with Japan's ITOCHU Corporation to look into the possibility of developing a supply chain for ammonia as a bunker fuel in Singapore, the companies said Friday.
The companies will seek to promote both the supply of the fuel and the development of zero-emission ships capable of burning it, ITOCHU said in a statement on its website.
Ammonia is one of the possible alternative fuels the shipping industry could take on to reach the International Maritime Organization's target of halving shipping's greenhouse gas emissions from 2008's levels by 2050.
The cost of ammonia produced using renewable power is likely to be several multiples of current conventional bunker prices, and significantly more space will be needed on board ships to carry the equivalent quantity of fuel.