Sumitomo Corporation Awarded MPA Funding to Enhance Safety and Efficiency of Ammonia Bunkering in Singapore

Sumitomo Corporation (Headquarters: Chiyoda-ku, Tokyo, Representative Director, President & CEO: Shingo Ueno, hereinafter referred to as "Sumitomo Corporation") has been awarded a government grant by the Maritime and Port Authority of Singapore ("MPA") under the Maritime Innovation and Technology Fund ("MINT Fund"). This exclusive funding will support research & development efforts aimed at enhancing the safety and efficiency of supplying ammonia as a marine fuel ("Ammonia Bunkering") at the Port of Singapore. Sumitomo Corporation also plans to conduct a demonstration of Ammonia Bunkering in Singapore in 2027. The company will collaborate closely with MPA to establish safety protocols, operational guidelines, and emergency response measures.
In parallel, the consortium led by Keppel Ltd ("Keppel"), comprising Sumitomo Corporation, Keppel and Advario Asia Pacific ("Advario"), has been appointed by the Energy Market Authority of Singapore ("EMA") and the MPA to advance to the next phase of the project to study the end-to-end low- or zero- carbon ammonia solution on Jurong Island for power generation and bunkering (the "Project").
These efforts will contribute to the decarbonisation of the shipping industry while supporting Sumitomo Corporation's broader commitment to energy transformation, a key growth area under its current Medium-Term Management Plan.

About the Project

MPA and EMA jointly launched a competitive process at the end of 2022 to establish a comprehensive supply chain for low- or zero- carbon ammonia, encompassing procurement, transportation, storage, and supply for end use in both power generation and bunkering. Sumitomo Corporation was selected from multiple bidders after completing the Pre- Front-End Engineering Design ("Pre-FEED") stage and will now advance to the Front-End Engineering Design ("FEED") phase. The company is also the sole recipient of the MINT Fund, which provides financial support to enable innovative elements, with a particular emphasis on research and development, and on enhancing the safety and operational efficiency of Ammonia Bunkering in Singapore.

Ammonia Fuel for Ships

Ammonia has long been considered as one of the most promising alternative marine fuels to reduce greenhouse gas ("GHG") direct emissions within the shipping industry. This aligns with the International Maritime Organization ("IMO")'s strategy to reduce GHG emissions from international shipping by at least 20% by 2030 compared to 2008 levels, and to reach net-zero emissions on a life-cycle basis by 2050.
Maritime Singapore, as part of their multi-fuel transition strategy, is seeking to decarbonize its bunkering operation by establishing a supply chain for next-generation marine fuels.

Sumitomo Corporation's Ammonia Bunkering Initiatives

Sumitomo Corporation has been actively developing Ammonia Bunkering in Singapore since 2021. In 2023, Sumitomo Corporation reached a basic agreement with Höegh Autoliners, a leading shipping company within the Roll-on/Roll-off ("RoRo") segment and a potential ammonia fuel consumer, for Ammonia Bunkering to their vessels in Singapore and the United States. Looking ahead, Sumitomo Corporation plans to take a step-by-step approach, starting with demonstration of Ammonia Bunkering at the Port of Singapore. Working closely with MPA and key potential offtakers, the company aims to leverage the insights from the demonstration to expand its operations toward full-scale commercialisation by 2030.

Selection of Appointed Consortium

In response to the joint proposal call by MPA and EMA, Sumitomo Corporation partnered with Keppel and Advario to form a consortium, which has been appointed to advance to the next phase of the Project. Subject to a successful outcome, the consortium will support Singapore's decarbonisation by developing a 55-65 MW ammonia power plant, constructing ammonia storage terminal infrastructure, and providing Ammonia Bunkering supply and services. Within this partnership, Keppel will operate the power plant, Advario will manage the storage terminal, and Sumitomo Corporation will serve as the marine fuel supplier. As Ammonia Bunkering forms a vital part of the Project, Sumitomo Corporation will continue working closely with Keppel and Advario to drive the project forward, fostering innovation, operational excellence, and successful implementation.

Kazuki Yamaguchi, General Manager, Maritime Energy Solution SBU, Sumitomo Corporation said: "Being selected as the choice proponent marks a pivotal milestone for our team. We have been intensively exploring ammonia bunkering since 2021, laying the groundwork for the solutions we are now advancing in close partnership with Singapore's regulators. We deeply appreciate MPA's trust in us as a strategic partner in shaping the future of sustainable shipping. Achieving true scale and commercialisation, however, is a challenge that no single company can tackle alone - it demands bold collaboration across the entire maritime value chain. This spirit of collaboration is one we are also proud to share with our consortium partners, Keppel and Advario, as we collectively work towards building a clean ammonia ecosystem in Singapore that can serve as a model for the region and beyond."

Ms Cindy Lim, CEO of Keppel's Infrastructure Division, said, "We are honoured to lead this trail-blazing consortium, paving the way towards a resilient, low-carbon energy future. Building on a successful pre-FEED study, we will continue working with world-class partners Sumitomo Corporation and Advario, while harnessing Keppel's deep engineering expertise and proven operating capabilities to deliver a cost-competitive, scalable ammonia value chain for low-emission power generation and bunkering. If implemented, this would be among the world's first direct-ammonia combustion power plants-and Singapore's first-setting a new benchmark for clean fuel solutions and global decarbonisation."

Bas Verkooijen, CEO Advario said, " We are proud to have been appointed, together with our consortium partners Keppel and Sumitomo Corporation, by the EMA and MPA to provide a low- or zero-carbon ammonia solution on Jurong Island. This is a great example of the power of partnerships, as well as Advario's commitment to playing a frontrunner role in the energy transition."

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