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Sumitomo and Keppel Unit Sign Deal to Develop Ammonia Fuels

Ammonia emits no carbon dioxide when combusted and could be a next-generation fuel for thermal power generation and large ocean-going vessels

An ammonia tank in the foreground at a thermal power station in Hekinan, central Japan. Photo: Reuters.


Japan’s Sumitomo Corporation and a unit of Singapore’s Keppel Offshore & Marine said they would jointly explore the feasibility of developing ammonia-based fuels.

Ammonia, a compound of hydrogen and nitrogen, emits no carbon dioxide when combusted, and therefore has long been considered as a next-generation fuel for thermal power generation and large ocean-going vessels.

It is also expected to play a role as an energy carrier for hydrogen since it is easier to liquefy and transport.

Sumitomo and Keppel O&M’s Keppel FELS unit will work on ammonia bunkering in Singapore, with the aim to commence commercial operations in the mid-2020s.

As Singapore aspires towards net-zero emissions, limited land space remains one of the critical challenges in the implementation of large-scale green energy.

The venture hopes to develop offshore power generation in Singapore using ammonia.

Keppel O&M is also developing an electric vessel supply chain in Singapore, which will feature energy storage systems to power harbour craft.

In November, another unit, Keppel Infrastructure Holdings, signed a venture with Incitec Pivot and Temasek over potential development of green ammonia in the Australian states of Queensland and New South Wales for export.

Green ammonia can be used as a direct feedstock in energy generation, or as a hydrogen carrier.


• George Russell





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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.


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