Japan's Itochu, Taiwan's U-Ming Marine Transport to study joint operation of ammonia-fuelled ships

U-Ming Marine Transport

22/03/2024 06:36

TOKYO, March 22 (Reuters) - Japanese trading house
Itochu Corp  8001.T  will study joint ownership and operation of
ammonia-fuelled ships with Taiwan's U-Ming Marine Transport Corp
 2606.TW , Itochu said in a statement, as Japan is bets on
ammonia to cut emissions. 
    The shipping industry transports about 90% of world trade,
and accounts for nearly 3% of the world's carbon dioxide
emissions; and installing ship engines that burn cleaner fuels
could help slow global warming trends.
    The International Maritime Organization (IMO) has set a
target of net-zero greenhouse gas emissions by around 2050, for
which cleaner fuels such as ammonia are key.
    The two companies have signed a memorandum of understanding
to explore options for ammonia-fuelled ship ownership and
operation and would also study usage of methanol and
energy-saving devices in the maritime industry, Itochu said. 
    Across the Asia-Pacific region, countries from Malaysia and
Indonesia to India and South Korea are conducting ammonia
co-firing trials at power stations which use fossil fuels, with
many projects involving Japanese investors.  
    Last year, Itochu agreed to study development of an ammonia
bunkering hub in Algeciras on the Gibraltar Strait in Spain,
part of its efforts to establish a global ammonia supply chain.
    In the power sector, Japan's top power generator, JERA,
plans to co-fire 20% of ammonia with coal at its Hekinan thermal
power station, in what it said will be the world's first trial
using a large amount of the gas at a major commercial plant.    

 (Reporting by Katya Golubkova. Editing by Gerry Doyle)
 ((jekaterina.golubkova@thomsonreuters.com;))