ClassNK Grants AiP for MOL's Ammonia Floating Storage and Regasification Unit

ClassNK, or Nippon Kaiji Kyokai, has taken a significant step by granting approval in principle (AiP) to Mitsui O.S.K. Lines, Ltd. (MOL) for the design of a Floating Storage and Regasification Unit (FSRU) specifically designed for ammonia. This collaborative effort between MOL and Mitsubishi Shipbuilding Co., Ltd. has been recognized by ClassNK, providing MOL with a crucial stamp of approval for the development of an innovative ammonia FSRU design.

The approval in principle serves as a key milestone, offering MOL added confidence in the design and progression of the ammonia FSRU. This technology is poised to play a pivotal role in enabling large-scale storage and distribution of ammonia through maritime means, aligning with MOL's commitment to contributing to the development of the ammonia value chain as a sustainable and carbon-neutral fuel alternative.

MOL envisions the ammonia FSRU as a strategic solution for obtaining liquefied gas at sea, vaporizing it, and transporting it to onshore facilities. FSRUs are known for their cost-effectiveness and shorter construction durations compared to equivalent onshore facilities. Leveraging its extensive experience in operating FSRUs for liquefied natural gas (LNG), MOL is well-positioned to apply its expertise to the evolving landscape of ammonia as a maritime fuel.

Collaborating with ClassNK and Mitsubishi Shipbuilding, MOL undertook a comprehensive hazard identification study (HAZID) as part of the AiP application process. This study focused on identifying potential hazards and associated risks in the design of the ammonia FSRU. A crucial aspect of the preparatory work involved a gas dispersion research initiative conducted by MOL prior to the HAZID. The findings from this research were integrated into the HAZID process, enhancing the team's ability to objectively analyze risks and formulate specific preventive and countermeasure strategies against potential ammonia leaks.

The knowledge gained from this collaborative effort, including the hazard identification study and gas dispersion research, positions the MOL Group to actively pursue the business development of ammonia FSRUs. As the maritime industry continues to explore sustainable and environmentally friendly fuel alternatives, MOL's commitment to ammonia as a potential carbon-neutral fuel underscores the company's forward-thinking approach.

In a related development, NYK Line recently entered into a time charter contract with MOL for the transportation of ammonia. This strategic move aligns with the growing interest in ammonia as a viable fuel option within the maritime sector.

Furthermore, MOL has announced its intention to issue 'blue bonds' through a public offering in Japan's domestic market early next year. This financial initiative reflects MOL's commitment to sustainable practices, as 'blue bonds' typically fund projects related to environmental and climate-related initiatives, emphasizing the company's dedication to responsible and eco-friendly business practices.