The Japanese multinational Itochu Corporation and Peninsula Petroleum, a leading supplier of alternative marine fuels based in Gibraltar, have signed a memorandum of understanding to jointly develop an ammonia supply facility at the Port of Algeciras. Peninsula already operates in the Algeciras dock and in Barcelona, the Canary Islands, Cadiz, Malaga, and Tarragona in bunkering operations through a registered company in Spain, with its registered office in the Las Marismas de Palmones Technological and Business Park.
In a statement, Itochu highlights that ammonia is advancing as a key zero-emission marine fuel solution and will greatly contribute to reducing greenhouse gas emissions. "This memorandum of understanding is a significant milestone for the societal implementation of ammonia as a marine fuel on a global scale and also a necessary step toward the realisation of the integrated project consisting of building a global ammonia supply chain and the development of ships powered by Itochu and its associate companies," states the Japanese multinational.
The company's intention is to establish a global supply chain through the joint development of an ammonia fuel supply facility in Algeciras, "where it is located in the Strait of Gibraltar, a strategic location for international logistics, together with Peninsula and future partners."
The Japanese company notes that Peninsula is one of the leading companies in alternative marine fuels, including LNG and bio-fuels, and has a strong presence and relationships with key stakeholders throughout the Mediterranean, including the Port of Algeciras. "Peninsula's active investment, participation, and knowledge of alternative fuels will contribute to the development of the ammonia supply centre in Algeciras," Itochu highlights.
The multinational has already promoted the development of ammonia supply in Singapore with other partners and, in parallel, is driving the development of bunkering hubs not only in Spain but also in other European ports, Panama, the Middle East, Japan, and other regions to serve as nodes of international logistics.
Itochu aims to lead the use of ammonia fuel in the international shipping industry, including bulk carriers and container ships, and its societal implementation as the company pursues a low-carbon society.