• Follow Us On Our Preferred Social Media Platform:

Mitsui O.S.K. Lines doubles three-year decarbonisation investment to USD 3.5 billion

30 Nov 2021

Japanese maritime shipping company Mitsui O.S.K. Lines (MOL) will double investments in decarbonisation efforts to the order of 400 billion yen (USD 3.5 billion) over three years compared with previous plans, President Takeshi Hashimoto said in an early November interview with Nikkei Asia.

MOL earlier aimed to invest a total of 200 billion yen (USD 1.7 billion) in greener technologies through March 2024. But the three-year spending will now rise by between 100 billion yen (USD 8.7 billion) and 200 billion yen (USD 1.7 billion) thanks to a significant increase in free cash flow from the global shipping boom, Hashimoto said.

Strong demand for shipping services “has given us more freedom on management decisions,” he said.

The increased investment will enhance Mitsui O.S.K.’s adoption of liquefied-natural-gas-(LNG) powered vessels; the company plans to launch 90 LNG-powered vessels by 2030 and announced in August an order for four car carriers.

Mitsui O.S.K. is meanwhile also investing in green ammonia as a key carbon-free bunker fuel source but foresees ammonia supply issues due to import limitations for Japanese shipping companies.

“We don’t have enough volume to use ammonia to fuel ships,” Hashimoto said, as quoted by Nikkei Asia.

“We can’t afford to wait for somebody else to produce the material.”

The company will consider producing and exporting ammonia derived from natural gas.

“We will look into ammonia-related mergers and acquisitions as well,” Hashimoto said.

Related: Mitsui O.S.K. Lines to start development of ammonia-fuelled large-size carrier
Related: Mitsui O.S.K. Lines, MAN Energy Solutions, Mitsui E&S Machinery in MOU for ammonia fuelled engine
Related: Mitsui O.S.K. Lines deepens investment of methanol as bunker fuel; acquires 40% of Methanex

 

Photo credit: Mitsui O.S.K. Lines
Published: 30 November, 2021

Related News

Featured News

Our Industry Partners

PR Newswire