Japan’s shipping firm MOL and a unit of LNG giant Shell are joining forces to work on alternative maritime fuel solutions and carbon emissions.
In that regard, MOL and Shell Marine Products Singapore, a business division of Shell Eastern Trading, have signed a memorandum of understanding, according to a statement by MOL issued on September 8.
“The companies will harness their unique perspectives as a fuel supplier and shipping company to navigate choices in the development of green future marine fuels,” MOL said.
MOL said it has positioned its environmental strategy as one of the key strategies in its “Blue Action 2035” management plan, and is the first company in the Japanese ocean shipping industry to set the target of achieving net zero GHG emissions by 2050.
The Japanese firm is investing in LNG as fuel in order to slash emissions and it recently completed a bio-LNG trial with the LNG-powered coastal bulk carrier, Ise Mirai, in Ise Bay.
Also, MOL this year placed in service Japan’s first two LNG-powered ferries.
MOL said that this MoU with Shell will play a “pivotal role” in progressing the company’s decarbonization ambitions.
This will be achieved through “concerted efforts to spearhead research initiatives,” it said.
As part of the agreement, the two companies will look to jointly conduct trials to explore the viability of bio- and synthetic fuel options as realistic decarbonization pathways, the firm said.
The collaboration also offers an opportunity for Shell and MOL to work together to engage the industry and its stakeholders on strategic policy issues, combining their dual perspectives with the purpose of understanding and exploring practical implementations for compliance measures.
As part of the agreement, the companies will also explore the effectiveness of these fuels in the context of carbon markets, MOL said.