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MSC and Shell to work on slashing shipping emissions, LNG as fuel

Switzerland-based shipping line MSC is joining forces with LNG giant Shell to work on slashing emissions in the shipping industry.

The long-term memorandum of understanding would help MSC and Shell to “play enhanced roles in the energy transformation of shipping, as developers and early adopters of innovative technologies and fuel solutions,” according to a joint statement on Friday.

“The companies plan to develop a range of safe, sustainable and competitive technologies that can reduce emissions from existing assets and help to enable a net-zero emissions future for shipping,” the statement said.

The two firms have worked together over the last 10 years on projects, including bunkering biofuels and trialling very and ultra-low sulphur fuels.

Hydrogen, methanol, LNG

Under the memorandum, MSC and Shell technical and commercial teams would collaborate to develop and deploy net-zero solutions such as zero-emission fuels of the future and the technologies that would enable them, including fuel cells, with the ambition of contributing towards a zero-carbon flexi-fuel concept vessel.

In addition, they will also work together on energy efficiency technologies, including digital services and platforms.

“The partners continue to envisage a range of fuel solutions on the route to a net zero future and are also exploring options such as hydrogen-derived fuels and the use of methanol as a marine fuel,” the statement said.

Both companies each have been exploring the significant potential benefits of progressing from fossil-based liquefied natural gas (LNG) to bio-LNG or synthetic variants.

Together, the partners would explore opportunities for MSC to use LNG in its fleet, as the lowest emissions fuel widely available today, the statement said.

To remind, MSC has earlier this year chartered eleven LNG-powered containerships from Singapore’s EPS while Shell is building one of the world’s largest LNG fueling networks on key trading routes.

The two firms will also consider future pathways, including methane-slip abatement technologies that will further bring down LNG’s emissions.

“The partnership also offers an opportunity for Shell and MSC to work together to engage the industry and its stakeholders on strategic policy issues, bringing their dual perspectives with the purpose of enabling constructive dialogue and to accelerate decarbonisation in the sector,” the statement said.

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