ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President and COO; hereinafter "ITOCHU") has executed a Memorandum of Understanding (“MOU”) with the marine fuels supplier, Peninsula Petroleum S.L^*1 (“Peninsula”) on the Joint Development of Ammonia Bunkering in Spain.

Ammonia is advancing as a key zero-emission marine fuel solution and it will greatly contribute to Greenhouse Gas (GHG) emissions reduction if ammonia can be commonly used as a marine fuel. This MOU is an important milestone for social implementation of the use of ammonia as marine fuel on a global scale, and also a necessary step toward the realization of the Integrated Project consisting of the construction of a global ammonia supply chain and the development of ammonia-fueled ships by ITOCHU and its partner companies.

ITOCHU aims to establish a global supply chain by promoting the joint development of an ammonia bunkering in Algeciras, Spain, where is located in Gibraltar Strait and is also a strategic location for international logistics, together with Peninsula and future partners. Peninsula is one of the leading companies in the alternative marine fuels including LNG and biofuels, and has a strong foothold and relationship with key stakeholders across the Mediterranean, including the Port of Algeciras. Peninsula’s active investment, involvement in and understanding of alternative fuels will contribute the development of ammonia bunkering hub in Algeciras, Spain.

ITOCHU has been promoting the development of an ammonia bunkering in Singapore with its partners^*2, and is concurrently promoting the development of bunkering hubs not only in Spain but also in other European port, Panama, the Middle East, Japan, and other regions that will serve as hubs for international logistics.

ITOCHU's approach to developing ammonia-fueled ships including bulk carrier and container ship, owning and financing those ships, collaborating with shippers seeking to decarbonize international logistics, developing ammonia bunkering hubs, procuring fuel ammonia and participating in low carbon or green ammonia production projects are all connected. ITOCHU will use its function and capability to lead the use of fuel ammonia in international shipping industry and its social implementation.

ITOCHU will accelerate the development of sustainable energy systems through these initiatives and ensure its contributions to the SDGs and improvement of related efforts, one of the basic policies laid out in its new medium-term management plan, as the company pursues a low-carbon society.