Japanese trading house Sumitomo Corp said on Monday that it has been awarded a Singapore Government grant to develop ammonia as an alternative marine fuel to help "decarbonise" the shipping industry.
The exclusive funding will support research and development efforts aimed at enhancing the safety and efficiency of supplying ammonia, or ammonia bunkering, at the Port of Singapore, Sumitomo said in a statement.
It did not disclose the terms of the grant, which was awarded by the Maritime and Port Authority of Singapore (MPA) under the Maritime Innovation and Technology Fund (MINT Fund).
MPA did not immediately respond to a Reuters request for comment.
Ammonia is among several alternative fuels that shippers and power companies are exploring to reduce local emissions, though it currently faces significant cost challenges.
Sumitomo plans to conduct a demonstration of ammonia bunkering in Singapore in 2027 and will work with the MPA to develop safety protocols, operational guidelines, and emergency response measures.
Separately, a consortium led by Keppel, comprising Keppel, Sumitomo, and Advario Asia Pacific, has been selected by Singapore’s Energy Market Authority (EMA) and the MPA to advance to the next phase of a project studying end-to-end "low or zero" carbon ammonia solutions on Jurong Island for power generation and bunkering.
Sumitomo said these efforts would contribute to decarbonising the shipping industry while supporting its broader commitment to energy transformation, a key growth area for the company.
(Reporting by Yuka Obayashi; Editing by Harikrishnan Nair)