MOL Signs Deal For Long-Term Transport Using Newbuilding LNG-Fueled Bulker

Mitsui O.S.K. Lines, Ltd. (MOL) announced the signing of a long-term contract with JFE Steel Corporation (JFE Steel) for long-term transport using an LNG-fueled bulk carrier.

Also, MOL and Nihon Shipyard Co., Ltd. have reached a basic agreement on the construction of the vessel, which is slated for delivery at the beginning of 2025. Under MOL’s operation, the vessel will provide reliable, long-term transport of imported iron ore and coal to supply JEF Steel mills in Japan.

Compared to conventional marine fuel oil, LNG is expected to reduce emissions of carbon dioxide (CO2) which is a greenhouse gas (GHG) by about 25-30%, sulfur oxide (SOx) by about 100%, and nitrogen oxide (NOx) by about 85%.

MOL Signs Deal for Long-term Transport Using Newbuilding LNG-fueled Bulker — Image Credits: mol.co.jp

MOL positions its environmental strategy as a top priority in the management plan, and on June 18, 2021, it announced the ‘MOL Group Environmental Vision 2.1′, which provides a more detailed roadmap for long-term emission reductions and sets even higher quantitative targets.

MOL set “Adoption of Clean Alternative Fuels” as one of five initiatives to realize its vision (see Fig. 1 below), and plans to increase the number of LNG-fueled vessels in its fleet to about 90 by 2030. It aims to further reduce GHG emissions by adopting more clean fuels, building upon LNG-fueled vessel projects already underway with this new vessel.

initiatives to realize MOL vision — Image Credits: mol.co.jp

MOL takes a proactive approach in its ongoing efforts to offer safe, reliable ocean transport services while working steadily to reduce the environmental impact of its business activities.