Tank storage company Vopak said Monday it has signed a deal with industrial gas giant Air Liquide to develop infrastructure for importing, processing and distributing ammonia and hydrogen in Singapore.

The companies will explore the feasibility of a low-carbon ammonia supply chain in the country, including building facilities to crack ammonia into hydrogen at Vopak's Banyan terminal. 

Additionally, they aim to establish a network of pipelines to distribute the low-carbon hydrogen, according to Vopak.

"This collaboration supports Singapore's National Hydrogen Strategy, which focuses on developing commercially viable hydrogen technologies for a low-carbon future," Vopak said in a statement.

Rob Boudestijn, president of Vopak Singapore, said using ammonia as a feedstock for hydrogen production presents an opportunity for industries to transition to lower-carbon options.

The agreement comes on the heels of Vopak's announcement to convert part of its Singapore Sebarok terminal for blending marine biofuels. These efforts highlight the growing importance of alternative fuels in reducing emissions from shipping and power generation.

Ammonia is one of several options being explored by companies looking to cut their carbon footprint.