Itochu explores green ammonia offtake agreement in Egypt

Japan’s Itochu Corporation (Itochu) will explore the purchase of green ammonia from ACWA Power’s Egypt plant.

PHOTO: Model of ammonia-fuelled vessel. Ammonia Energy Association

Saudi-listed renewable energy firm ACWA Power is building a green ammonia production plant in Egypt with an initial capacity of 600,000 mt/year.

Itochu will become a co-developer and offtaker of ACWA Power's project.

It intends to use the sourced green ammonia for bunkering in the Suez Canal. It has, however, not stated whether it will purchase the entire quantity or only a portion of the initial capacity.

The deal will allow Itochu to “introduce low-carbon/clean ammonia to the maritime sector as an alternative zero-emission fuel” that will serve as "promising source for our ammonia bunkering hub set-up in the Suez Canal under joint development with our partner in line with the Egyptian government’s support,” the company said.

Betting big on ammonia

Itochu is heavily investing in the development of ammonia bunkering infrastructure and is considering using ammonia as a fuel in the future.

Apart from the Suez Canal, it is developing ammonia bunkering facilities in Singapore and Spain near the Strait of Gibraltar. The company further plans to establish ammonia bunkering terminals in "various European ports, the Panama Canal, Japan and other key areas in the international maritime logistics network,” it said. It has also designed an ammonia-fuelled bunkering vessel along with Mitsui O.S.K. Lines.

It has ordered an ammonia-fuelled bulk carrier from Nihon Shipyard and is expected to join its fleet by 2026. It is also looking to own and operate ammonia-fuelled vessels in partnership with U-Ming Marine Transport.

In addition, it is studying the possibility of deploying Amogy's ammonia cracking technology on retrofits or new construction.

By Konica Bhatt

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