Details, such as production scale and supply volume, have yet to be determined, but the company seeks to have a supply network in place by about 2030. Ammonia, which does not emit CO2 when it is burned, is seen as an important fuel in the global shift away from fossil fuels. Itochu hopes to create new business opportunities by expanding its supply network.

Renewable energy will be used to electrolyse water to produce hydrogen in the ammonia synthesising process. Candidate sites for production include Australia, the Middle East, South America and others. The output will be exported to Singapore, where Tuas Power will use it to produce electricity.

Singapore has announced plans to reach net-zero emissions by 2050. The city-state currently produces more than 90% of its energy from natural gas. Replacing some of it with ammonia could bring the country closer to the goal.

In addition to the Singapore project, Itochu has other ammonia businesses in the planning stages. It is working with a Canadian subsidiary of Malaysian oil and gas giant Petronas to bury CO2 emitted during production of ammonia in the ground.

Similarly, it is looking to partner with Sasol, a South African petrochemical company, to develop a supply infrastructure for ammonia produced from renewable sources.