Tokyo, January 5, 2024 – Mitsui O.S.K. Lines, Ltd. (MOL) has inked a significant time charter contract, marking a pivotal move in the maritime and clean energy sectors. The deal involves the ammonia carrier, “Green Pioneer,” and Yara Clean Ammonia Switzerland SA (YCA Switzerland), a subsidiary of Yara International ASA, a world leading nitrogen fertilizer manufacturer.
Breaking Ground in Ammonia Transport
The ammonia carrier, Green Pioneer, delivered on December 25, 2023, is poised to play a crucial role in the transportation of ammonia, primarily within the Pacific region. Traditionally recognized as a key raw material for fertilizers, ammonia is garnering attention as a next-generation clean energy source. Its appeal lies in being an environmentally friendly option, emitting no carbon dioxide during combustion. This attribute positions ammonia favorably for applications like mixed burning in coal-fired power plants and serving as a hydrogen carrier.
A Decisive Step in Partnership
MOL and the Yara Group have fostered collaboration since the signing of a memorandum of understanding on decarbonization projects, with a focus on the ammonia sector, in 2022. The recently concluded time charter contract stands as a tangible outcome of this collaborative effort. Both entities envision establishing a long-term partnership in the clean ammonia domain and actively expanding their business footprint to construct a robust ammonia supply chain.
Aligning with Environmental Strategies
MOL has strategically embedded environmental considerations in its management plan, “BLUE ACTION 2035.” In the pursuit of net-zero emissions by 2050, outlined in the “MOL Group Environmental Vision 2.2,” the company is committed to contributing to a decarbonized society. The emphasis lies in amassing a noteworthy track record in high-quality and secure ammonia transportation, along with active participation in the extensive ammonia value chain. This involvement is particularly relevant considering the anticipated surge in demand for ammonia as a fuel in the foreseeable future.
Green Pioneer Specifications
- LOA: 173.70 m
- Breadth: 28.00 m
- Draft: 10.419 m
- Cargo tank capacity: 34,500 m3
- Delivered: August 2010
- Shipyard: Hyundai Mipo Dockyard
- Ship management company: MOL Tankship Management Pte. Ltd.
Committed to Sustainability
The MOL Group, recognizing “Sustainability Issues” as pivotal to its growth, emphasizes contributing to society through the realization of the Group Vision. The recent initiative aligns seamlessly with their commitment to “Safety & Value,” focusing on providing added value through safe transportation and their social infrastructure business.
In summary, MOL’s time charter agreement with Yara represents a forward-looking stride in the maritime sector, emphasizing the pivotal role ammonia can play in the evolving landscape of clean energy. The collaboration not only underscores the commitment to sustainability but also positions both companies at the forefront of shaping the future ammonia supply chain.
