Japan-based ITOCHU Corporation has signed a shipbuilding contract for a 5,000 m3 ammonia bunkering vessel with Sasaki Shipbuilding Co., Ltd., marking a significant step forward in maritime decarbonization efforts.

The vessel, ordered through ITOCHU’s wholly-owned Singapore subsidiary Clean Ammonia Bunkering Shipping Pte. Ltd. (CABS), will be the world’s first newbuilding ammonia bunkering vessel. It will be constructed alongside an ammonia tank plant to be built by Izumi Steel Works Ltd.

“The vessel is expected to be delivered in September 2027,” according to the company announcement, with ammonia bunkering demonstrations in Singapore scheduled to begin shortly thereafter.

The project is part of the “Demonstration Project for Bunkering Ammonia as Marine Fuel in Singapore” adopted by Japan’s Ministry of Economy, Trade and Industry under its Global South Future-oriented Co-Creation Project. The vessel will be flagged under the Singapore Registry.

ITOCHU plans to establish “a safe offshore bunkering operation of ammonia as marine fuel by way of ship-to-ship transfer” and aims to expand this business model to other major maritime hubs including Spain (Strait of Gibraltar), Egypt (Suez Canal) and Japan.

The development comes as the International Maritime Organization (IMO) continues its push toward reducing greenhouse gas emissions from international shipping to net-zero by around 2050. In April 2025, international approval was granted for draft convention revisions that include systems for phasing in alternative low-emission fuels and providing economic incentives for zero or near-zero emission vessels.

Ammonia bunkering vessels are “drawing attention globally as important facilities in the fuel supply chain that play the last one-mile role” in connecting maritime and fuel industries, according to ITOCHU.

Financing for part of the vessel’s purchase price has been secured through The Hiroshima Bank, Ltd., a leading bank in ship finance that supports local shipbuilding and maritime industries.

The Integrated Project includes both the development of ammonia-fueled vessels and establishing a global supply chain for ammonia as marine fuel, supporting ITOCHU’s commitment to decarbonization in international shipping.