SINGAPORE (June 20): Malaysian logistics company MISC Group (MISC Bhd) has signed an agreement to develop ammonia engines for ships, marking a step towards zero-emission shipping operations, the company said on Tuesday.

MISC-owned subsidiary AET and Akademi Laut Malaysia (Alam) have signed an agreement with WinGD to develop engines for ammonia dual-fuelled vessels, a first for deep-sea vessels, MISC said in a statement.

Alam also signed an agreement with shipping classification society DNV for the training, research and development of maritime professionals to meet workforce needs for a low- and zero-carbon pathway.

Ammonia is one of several fuels the shipping industry is exploring to reduce carbon emissions and meet targets set by the International Maritime Organisation.

However, industry players have voiced concerns over the feasibility of adopting ammonia as a bunkering option, due to safety concerns and financial costs.