ITOCHU Corporation and Orascom Construction sign a Memorandum of Understanding for the Joint Development of Ammonia Bunkering in the Suez Canal
October 25, 2023
ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President and COO; hereinafter "ITOCHU") has signed a Memorandum of Understanding (“MOU”) with Orascom Construction*1, a leading global engineering and construction contractor, for the Joint Development of Ammonia Bunkering in the Suez Canal, Egypt.
Ammonia is advancing as a key zero-emission marine fuel solution that can greatly contribute to the reduction of Greenhouse Gas (GHG) emissions. This MOU is an important milestone in the adoption of ammonia as a marine fuel and a necessary step toward the realization of the proposed 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.
Together with Orascom Construction and future partners, ITOCHU aims to establish a global supply chain by promoting the joint development of an ammonia bunkering in the Suez Canal in Egypt, a strategic location for international maritime logistics.
Orascom Construction is playing a leading role in the energy transition through various sectors such as sustainable industrial and infrastructure development and renewable energy. Capitalizing on its expertise in these fields, Orascom Construction will jointly contribute with ITOCHU to the development of the proposed ammonia bunkering hub in Egypt’s Suez Canal.
ITOCHU has been promoting the development of ammonia bunkering in Singapore and Spain (Strait of Gibraltar) with partner companies*2, and now the Suez Canal will be added to this list. In parallel, ITOCHU will concurrently drive the development of ammonia bunkering hubs in various European ports, the Panama Canal, Japan and other key areas in the international maritime logistics network.
ITOCHU's approach encompasses the development of ammonia-fueled ships including bulk carriers and container ships, as well as the owning of and financing to those ships. The approach also involves collaborating with shippers committed to decarbonizing international logistics, developing ammonia bunkering hubs, fuel ammonia procurement and participating in low carbon or green ammonia production projects. ITOCHU will use its function and capability to lead the use of fuel ammonia in the 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 the improvement of related efforts. This commitment is in line with one of the basic policies laid out in the company’s new medium-term management plan, as the company pursues a low-carbon society.