MOL And Maersk Join Forces For Decarbonising Shipping Sector

Mitsui O.S.K. Lines, Ltd. (MOL) attended the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28), which took place in Dubai from the 30th of November to December 12, 2023.

At the Japan Pavilion hosted by the Ministry of the Environment, MOL displayed the Next-Generation Wind Powered Vessel dubbed the WIND CHALLENGER and the ultimate zero-emissions seagoing vessel named the Wind Hunter.

The organization’s executives, including President Hashimoto, appeared at events held by various companies and groups at Blue Zone in conjunction with the COP.

In conjunction with COP28, both the World Economic Forum as well as A.P. Moller Maersk, one of the world’s major container shipping firms, issued a statement on the decarbonization of the shipping sector on their respective websites.

It was discussed that it is critical to close the price gap between clean alternatives vs. fossil fuels in order to decarbonize the shipping industry.

The cost of transforming renewable energy into an energy source that can be utilized as fuel aboard ships is expected to be three to four times that of traditional fossil fuels. Fuel costs contribute to approximately 30 to 50 per cent of operating costs, and the resulting price disparity is a hurdle to the shipping industry’s decarbonization.

There is no single zero-emission fuel option that can meet the current demand for bunker fuel. The maritime industry represents a melting pot of players with a wide range of traits, and diverse solutions must be developed with various partners in order to decarbonize all types of vessels.

To decarbonize, the sector must increase its production of zero-emission (green) fuels such as ammonia, methanol, and hydrogen, as well as batteries to deploy and power zero-emission boats. Support both inside and outside the business, including government policy, is critical to correcting the price disparity and promoting a consistent supply of different clean alternative fuels.

President Hashimoto stated at this event that many approaches are required to decarbonize the maritime industry, which underlies numerous supply networks. He proposed a tiered investment strategy, with one swift investment in LNG and methanol that can be executed immediately and two investments in fuels like ammonia and hydrogen that require technological development.

Reference: MOL

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