- Global offshore group Keppel Fels has signed a memorandum of understanding (MOU) with Japanese trading house Sumitomo Corp to explore the feasibility and implementation of various ammonia fuel applications in Singapore.
- They expect ammonia to play a role as an energy carrier for hydrogen since it is easier to liquefy and transport than hydrogen.
- Keppel Corp does not expect the development to have any material impact on the net tangible assets or earnings per share of the group for the current financial year.
Keppel Fels, a global offshore company, has signed a memorandum of understanding (MOU) with Sumitomo Corp, a Japanese trading company, to investigate the feasibility and implementation of various ammonia fuel uses in Singapore as reported by StraitTimes.
Commercial operations
Through this MOU, Keppel Fels – a wholly-owned subsidiary of Keppel Corp’s offshore and marine unit (Keppel O&M) – and Sumitomo will accelerate the development of an ammonia bunkering vessel, the companies said in a joint statement on Monday (Dec 27).
Keppel O&M and Sumitomo aim to commence commercial operations of their ammonia bunkering business in the mid-2020s.
They will also work to expand the ammonia value chain in Singapore.
Highlighting limited land space as one of the critical challenges that remain in the implementation of large-scale green energy, Keppel O&M and Sumitomo said one of the solutions they intend to explore is the use of green energy, such as ammonia, for offshore power generation in Singapore.
Energy carrier
They expect ammonia to play a role as an energy carrier for hydrogen since it is easier to liquefy and transport than hydrogen.
Mr Tan Leong Peng, managing director (New Builds) of Keppel O&M, said the collaboration with Sumitomo will deepen the group’s decarbonisation efforts, as it continues to leverage its engineering expertise and bunkering experience, as well as build new capabilities, to develop the ammonia bunkering ecosystem for the marine industry.
“We are also applying our research in ammonia to advance adjacent solutions in green energy generation.”
Keppel Corp does not expect the development to have any material impact on the net tangible assets or earnings per share of the group for the current financial year.
Keppel Corp shares were trading 0.4 per cent or two cents lower at $5.11 as of 9.39 am on Monday.
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Source: Strait Times
