The ammonia terminal is expected to be operational in 2030. Image Credit: Vopak

Japan‘s IHI Corporation and global storage operator Vopak have signed a joint development agreement to establish a joint venture for developing and operating an ammonia terminal in Japan.

The terminal is expected to start operations in 2030 and will focus on the safe storage and handling of ammonia, Vopak said in an emailed statement on Friday.

The project aims to support Japan’s decarbonisation goals by enabling the import, storage, and stable supply of ammonia, which is expected to be used increasingly as a low-carbon fuel and industrial feedstock.

Vopak will contribute its global experience in ammonia terminal engineering and operations, while IHI will leverage its expertise as Japan’s leading ammonia storage tank manufacturer.

The terminal is also intended to act as a hub for marine-based ammonia transport, supporting a broader supply and distribution network.

While it is not clearly stated whether the facility will support ammonia bunkering, the availability of ammonia could benefit the shipping sector as it explores alternative fuels for decarbonisation.

This agreement builds on a memorandum of understanding the two companies signed in November 2023 to explore ammonia infrastructure development in Japan.