MOL & Yara Sign a Charter Agreement for an Ammonia Carrier

6th January 2024

MOL & Yara Charter Agreement

In a groundbreaking development in the maritime industry, Mitsui OSK Lines (MOL), one of Japan’s leading shipping companies, has signed a time charter contract with Yara Clean Ammonia Switzerland, a subsidiary of the renowned Norwegian fertilizer manufacturer Yara, for the transportation of ammonia. This strategic partnership marks a significant step towards promoting sustainable and environmentally friendly shipping practices.

The time charter contract solidifies the commitment of Mitsui OSK Lines to embrace green technologies and contribute to the global efforts aimed at reducing carbon emissions. Ammonia has emerged as a promising green fuel in the shipping industry, and Yara, being a key player in the fertilizer sector, has been actively involved in promoting the use of clean ammonia for sustainable transportation.

Up until 2016, MOL participated actively in the ammonia trade. In 2021, it reentered the industry with the acquisition of Green Pioneer, formerly known as Gaschem Hamburg. Since then, it has focused on the development of ships that run on ammonia, large-scale ammonia transporters, and floating storage and regasification units. The ship was delivered on December 25, 2023, and its primary purpose is to transport ammonia throughout the Pacific.

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The move towards clean ammonia aligns with the broader industry trend of exploring alternative fuels to meet ambitious environmental targets. Ammonia is particularly appealing due to its potential to generate power without emitting carbon dioxide when burned.

As the shipping industry faces increased pressure to reduce its carbon footprint, partnerships like the one between MOL and Yara Clean Ammonia Switzerland demonstrate a commitment to exploring innovative and sustainable solutions.

Mr. Takeshi Hashimoto, President and CEO of Mitsui OSK Lines, expressed his enthusiasm about the collaboration, stating, “This partnership with Yara Clean Ammonia Switzerland marks a milestone in our journey towards sustainable shipping.

The time charter contract is a pivotal step in the direction of fostering a more sustainable and eco-friendly maritime industry. It reflects the shared vision of Mitsui OSK Lines and Yara Clean Ammonia Switzerland to lead the way in the adoption of clean energy solutions and sets a precedent for other shipping companies to follow suit in embracing environmentally conscious practices.