The European Commission has given the green light to the creation of a joint venture between the Japanese Itochu Corporation and the marine fuel provider Peninsula for the development of ammonia bunkering services. The operation has been assessed under EU Merger Regulation and authorized through the simplified review procedure.
The joint venture will focus on marketing and supplying ammonia as marine fuel, as well as its trading within the energy market. Brussels has concluded that the operation does not pose competition issues, given the limited activity of the joint venture in the European Economic Area and the combined limited market share of both companies.
The authorization of this joint venture continues the collaboration between both companies, which had already signed previous agreements to develop ammonia bunkering infrastructures in strategic ports. At the time of announcing their alliance, Itochu stated its intention to establish a global supply chain through the joint development of ammonia bunkering operations at the Port of Algeciras, located in the Strait of Gibraltar and considered a strategic location for international logistics. The Japanese company also indicated that Peninsula's active investment and its knowledge of alternative fuels would contribute to the development of an ammonia bunkering hub in Algeciras.
Ammonia is widely considered a potential marine fuel to support the decarbonization of maritime transport, although its high toxicity remains a key safety concern regarding its handling, storage, and supply to ships.
The authorization from the European Commission is part of a package of four operations approved on the same day under the community merger regulations. Alongside the Itochu and Peninsula joint venture, Brussels has authorized the exclusive takeover of ArcelorMittal CLN Distribuzione Italia by ArcelorMittal, the acquisition of Astemo by Honda Motor, and the purchase of Marathon Asset Management by CVC Capital Partners. None of the four operations has raised competition objections.
