Mitsui O.S.K. Lines (MOL) has concluded definitive agreements with the world’s largest producer and supplier of methanol, Methanex Corporation (Methanex), to establish a strategic partnership involving Methanex’s subsidiary Waterfront Shipping (WFS),
specialising in methanol transportation, for marine fuel’s commercialisation.
Following a prior announcement made earlier in July, the definitive agreements are consistent with the previously published Key Commercial Terms, with the Japanese shipping company acquiring a 40% minority interest for US$145 million.
The closing of the agreement which will strengthen the partners’ relationships for over 30 years is subject to all customary conditions being met, including regulatory approval.
As a marine fuel, methanol can meet current and future emissions regulations for the commercial shipping industry.
It can reduce sulphur oxides (SOx) emissions by up to 99% particulate matter (PM) emissions by up to 95%, nitrogen oxides (NOx) by up to 80%, and carbon dioxide (CO2) emissions by up to 15% during combustion, compared to conventional marine fuels.
Meanwhile, methanol when is produced from renewable sources such as municipal waste, biomass and recycled carbon dioxide, can reduce CO2 emissions by up to 95%.
“Through this transaction, Methanex as the world-leading methanol producer, WFS as the world’s leading methanol shipper, and MOL as the provider of multimodal shipping services will strengthen a relationship established over 30 years and advance the commercialisation of methanol, including renewable methanol, as a viable marine fuel,” stated the Janapese shipping company.
