Fuel roadmap unveiled
This March, the “MOL Group Environmental Vision 2.2” was released, and will act as a new strategy for the company to reach net-zero emissions by 2050. Included in this plan is an alternative fueled fleet roadmap (see right). In the immediate future, decarbonisation via LNG and methanol will occur in MOL’s fleet, peaking between 2030-2035 (eventually, LNG will be replaced by e-methane). From later this decade, the use of hydrogen & ammonia fuels will begin, with the number of capable vessels steadily increasing until they comprise the vast bulk of MOL’s operational fleet in 2050.
Strategic investment in ammonia fuel production
In order to secure fuel supplies for these vessels, MOL Clean Energy US (a subsidiary of MOL) has joined the Ascension Clean Energy mega-project as a joint venture shareholder, joining project developer Clean Hydrogen Works, Denbury Inc. and Hafnia. Ascension Clean Energy will produce over 7 million tonnes of CCS-based ammonia per year, targeting the power generation, bunker fuel and export markets.
Clean hydrogen-ammonia is critical to decarbonizing the global energy market. With this innovative project, MOL is investing not only for our future growth, but also helping promote the development and adoption of clean hydrogen-ammonia within our fleet and customer base.Tomoaki Ichida, CEO, MOL Clean Energy US in Clean Hydrogen Works’ official press release, 14 June 2023
New partnerships: Singapore
In addition to its investment in the US, MOL has agreed to a strategic partnership with Chevron to progress maritime decarbonisation in Singapore. The pair will focus on the use of alternative fuels and other technologies on-board existing vessels.
MOL is honored to have the opportunity to jointly study GHG emission reductions through this MoU with Chevron. First, we will study and implement all possible means, including the use of next-generation fuels and the introduction of new decarbonization technologies such as wind power and electricity, in tankers that have been chartered for a long period of time. We would then like to expand these efforts to other parts of our business.Nobuo Shiotsu, MOL Senior Managing Executive Officer in his organisation’s official press release, 23 June 2023
New partnerships: Australia
And in Australia, MOL and the Port of Newcastle will collaborate on the under-development Clean Energy Precinct, which will feature electrolytic hydrogen and ammonia production facilities. More than 300 MOL-operated vessels call in at the Port of Newcastle every year, making the establishment of a fuel supply chain and bunkering alternatives an attractive prospect for the Japanese shipping giant.
Learn more in our next episode of Maritime Insights
Next month, the AEA’s Conor Fürstenberg Stott will be joined by two key Mitsui OSK Lines representatives to discuss ongoing ammonia plans. Where does clean ammonia fit into the broader strategic goals for an international shipping giant? How can a holistic, integrated approach aid the uptake of alternative maritime fuels like ammonia? Join us on Tuesday 8 August, 4PM Japan Standard Time to learn more.