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Japan’s Itochu signs deal for Egypt ammonia bunkering

  • : Fertilizers, Hydrogen
  • 25/08/20

Japanese trading house Itochu has signed an agreement to develop ammonia bunkering hubs in Egypt, marking its latest move to become a key supplier of ammonia to the shipping sector.

Itochu struck a deal with Cairo-based Orascom Construction to design, develop and operate integrated facilities for supplying ships with ammonia as marine fuel, according to the Suez Canal Economic Zone authority. The hubs will be located at the zone's ports of Ain Sokhna and East Port Said.

The agreement follows a series of recent steps by Itochu to expand its ammonia bunkering footprint.

On 19 August, the firm signed a deal with Mitsui OSK Lines (Mol) to demonstrate ship-to-ship ammonia bunkering in Singapore using a dedicated bunkering vessel and dual-fuel Capesize bulkers. Trials are planned for the second half of 2027. Mol said it intends to co-own three ammonia dual-fuel Capesize bulkers with Belgium-based oil tanker firm CMB.Tech, with delivery scheduled for 2026–27 from Chinese shipbuilder Qingdao Beihai.

Itochu has also recently signed a deal to co-develop a 300,000 t/yr renewable ammonia project in India with engineering firm L&T, aiming to export the output to Singapore for bunkering operations.

The company previously said it plans to commercialise ammonia bunkering in Singapore first before expanding to Spain, Egypt and Japan. Itochu had initially aimed to begin trials in Singapore in 2026, but postponed the timeline, citing expectations of significant demand growth only after 2028.

Other Japanese firms and government bodies also discussed ammonia and hydrogen prospects with Egyptian partners during an investment forum this week.

The Tokyo Metropolitan Government signed a deal with the Suez Canal Economic Zone authority to co-operate on green hydrogen for ship bunkering, focusing on knowledge exchange, demand stimulation and promotion of clean energy applications.

Japanese trading firm Sumitomo took part in discussions on renewable hydrogen production for export, ship bunkering, green steel and potential involvement in infrastructure such as desalination and "hydrogen service corridors", according to the Suez Canal Economic Zone authority.

Many developers have announced plans to produce renewable hydrogen and derivatives in the economic zone, including for maritime use. But public updates have been limited and most initiatives remain in early development stages.


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