Iino Kaiun Kaisha has ordered a 23,000-cbm ammonia carrier at Hyundai Mipo Dockyard under a long-term charter contract with Japanese trading house Mitsui & Co.
Iino said the newbuilding would be the "world's first" ammonia carrier designed as ammonia ready, to run on either ammonia or LPG in the future.
No price has been disclosed for the vessel that will be delivered in December 2023.
The new-design carrier will be classified by the American Bureau of Shipping.
Mitsui & Co has been involved in trading ammonia for 50 years and handles about 700,000 tonnes annually, mainly for sale in Asia.
It is the largest supplier of ammonia to Japan for use in the production of chemicals and fertilisers.
Mitsui & Co said it had also placed the order with an eye on the potential demand for ammonia as a marine fuel.
"Ammonia is also attracting interest as a zero-emission fuel that emits no CO2 during combustion, and as a means for transporting hydrogen," Mitsui & Co said.
Reducing emissions
"The vessel will be used to ensure stable supplies of ammonia to existing customers in Asia, including Japan. In the future, Mitsui will consider engaging the vessel for supplying clean fuel ammonia to Japan," it added.
The transportation of LPG, ammonia and LNG is a major part of Iino Kaiun's shipping business. It has set a target of reducing greenhouse gas emissions by 40%, compared with 2008 levels, per transport unit, by 2030.
"Iino is now re-entering the ammonia transportation business for the first time since 2017, and is furthering its commitment to the realisation of a sustainable society," Iino said in a statement.
Mitsui and Iino worked together with Hyundai Mipo in 2019 when they jointly ordered a methanol-fuelled chemical carrier at the yard.
Iino is a diverse shipping company with a fleet of 106 ships amounting to 5.2m dwt. It has 42 chemical tankers, 16 large gas carriers and 24 small gas carriers. The company also has extensive real-estate interests in Japan.
