Japan’s Mitsui OSK plans $ 1.8 billion investment by 2023 to reduce emissions

Taranaki Sun is a main engine equipped methanol transporter that uses methanol as fuel (MOL)

Posted on Apr 5, 2021 6:46 PM by

The maritime executive

Japan’s Mitsui OSK became the first of Japan’s major shipping companies to draw up a plan to achieve zero emissions from its fleet by 2050. Nikkei Asia reports that the company has drawn up a $ 1.8 billion investment plan in over the next three years as part of its overall plan to reduce carbon emissions and develop new carbon-neutral businesses.

The company presented its initiatives as part of a presentation of its three-year business plan. Nikkei Asia points out that efforts to move the company away from fossil fuels and its traditional operations are the first in-depth presentation provided by the shipping giant. In the 2020 presentation, the company offered generalized statements about a transition without details or dates.

In the short term, MOL reports that it will work to increase its use of LNG as a fuel for a growing part of its fleet. The company has already announced new car carriers and ferries that will run on LNG as the primary fuel source. The company is now also planning a transition for a larger part of its tanker fleet.

“LNG seems almost certain to be the main next-generation fuel of the 2020s” as part of the decarbonization trend, company president Takeshi Hashimoto said at a virtual press conference, reports Nikkei Asia. The goal is for a third or more of the fleet to switch to using LNG for propulsion over the next decade.

Similar to all major shipping lines, MOL reports that it is also exploring emerging fuel technologies. “We will also need to switch to new alternative fuels such as hydrogen and ammonia,” said Hashimoto, discussing the company’s goal of achieving net zero for its GHG emissions.

Recently, the company also discussed a number of its other initiatives to reduce emissions and improve the performance of the vessel fleet. MOL took over the Wind Challenger project in 2018, which had previously started as an academic program. The company is working to complete the development of technology that aims to use a hard telescopic sail that converts wind energy into propulsive force. Recently, MOL announced that it was working with a client on developing a design to allow the Wind Challenger to be used on a bulk carrier. The company has 2022 scheduled for the release of the technology and aims to launch its first ship with the sail, a coal transporter, by 2022.

The company also announced efforts to enter new business lines linked to emerging opportunities in renewable energy. MOL has taken steps to launch activities in the offshore wind energy segment and is also exploring wave and marine energy. MOL is also participating in the partnership to present the Tokyo LNG bunker vessel.

Last month, MOL announced that it was making its first foray into the liquefied CO2 shipping industry invested in Norwegian company AS Larvik Shipping, a shipping company specializing in CO2 transportation. The companies said they would explore the adoption of larger ships to expand both upstream and downstream and into the carbon capture use and storage value chain.

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