As part of its drive to comply with environmental regulations, Mitsui O.S.K Lines (MOL) will fund six new technologies to reduce emissions and improve efficiencies by issuing green bonds.
The Japanese logistics company, which recently merged into the new ocean carrier Ocean Network Express, has targeted the technologies as part of its commitment to meeting the International Maritime Organisation’s (IMO) requirements.
New legislation from the worldwide regulation authority targetted will aim to ensure that shipping companies cap their sulphur emissions at 0.5% from 2020.
The technologies MOL plans to develop from the proceeds of its green bonds are as follows:
- Ballast water treatment systems – designed to cut bacteria in the hull of ships. As of April 2018, 114 MOL vessels have water ballast treatment systems.
- SOx scrubbers – created to help ships meet IMO regulations by cutting sulphur oxides (SOx) from vessel engine exhausts.
- LNG-fueled vessel – used to almost eliminates SOx emissions. They produce far smaller amounts of nitrogen oxide (NOx) and carbon dioxide (CO2).
- LNG bunkering vessels – made to not only supply LNG vessels but also to run on LNG themselves. They’ll help increase the popularity of LNG as a fuel for merchant vessels. In February 2018, MOL signed long-term charter contract for the world's largest LNG bunkering vessel.
- New Propeller Boss Cap Fins (PBCF) – these cut consumption and can improve fuel efficiency by 5% compared to a vessel without a PBCF, consequently reducing exhaust emissions. Jointly developed by MOL, Akishima Laboratories (Mitsui Zosen) Inc., and MOL Techno-Trade, Ltd, the latest upgrade in PBCFs are used on over 3,200 vessels.
The initiative will also contribute to the ‘Wind Challenger Plan’, a joint research project by MOL and Tokyo University to cut CO2 emissions by using propelled sails on containerships. It hopes to launch a sail-fixed vessel by 2020.
MOL’s ‘green bonds’ will be called ‘MOL Blue Ocean Environmental Bonds,’ and this is the first time that ‘green bonds’ will be issued in Japan to individual investors, and they will be made available through a public offering in Japan’s domestic market.
MOL’s statement read: “MOL established the MOL Group Environmental Vision 2030 in April 2017, and designated environment-related and emission-free businesses as core activities in its “Rolling Plan 2018” management plan.
“The MOL Group also views responses to stricter environmental regulations and activities to reduce its environmental impact as opportunities to create new businesses and diversify its business portfolio, and address new challenges in technical innovation.”