MOL, Shell sign collaboration agreement to advance decarbonization in maritime sector
Mitsui O.S.K. Lines Ltd. announced Sept. 8 that MOL and Shell Marine Products Singapore, a business division of Shell Eastern Trading Pte. Ltd., have signed a memorandum of understanding (MOU) to agree a joint focus on advancement of alternative maritime solutions and managing carbon-emissions liabilities holistically.
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 group stated that 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 greenhouse-gas (GHG) emissions by 2050.
The MOU will play a pivotal role in progressing MOL’s decarbonization ambitions, the shipping company stated.
This will be achieved through concerted efforts to spearhead research initiatives.
As part of the agreement, the two companies will look to jointly conduct trials to explore the viability of biofuel and synthetic-fuel options as realistic decarbonization pathways.
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.
“We are pleased to execute this MOU with Shell, one of the most prominent companies leading decarbonization in the shipping society,” said Kazuhiro Takahashi, executive officer at MOL. “We believe this MOU will be an important step for both businesses to drive impactful change in the industry. Choices of marine fuel will require a strategic decision, [and] the collaboration with experienced and reliable partners is essential.”
Melissa Williams, president of Shell Marine, added, “We are delighted to build upon our longstanding relationship with MOL. With this MOU, we will focus on joint studies in understanding the impact from different regulatory environments as well as exploring possible pathways for the successful decarbonization of the shipping industry.”
MOL operates a fleet of about 800 vessels while Shell companies have operations in more than 70 countries and territories.