Mitsui OSK Lines (TYO:9104) subsidiary MOL Ocean Bulk has signed a 25-year agreement with Vale (NYSE:VALE) covering two tri-fuel iron ore carriers.
The vessels will be able to operate using ethanol, methanol, or conventional heavy fuel oil under Vale’s shipping decarbonisation program.
MOL describes the 210,000-tonne vessels as the first ore carriers equipped with this combination of fuel capabilities.
Delivery is scheduled for 2030, after which the vessels are expected to transport iron ore from Brazil to international markets, primarily China.
MOL says the ships will also be designed to use liquefied natural gas or ammonia in future and will incorporate energy-saving technologies. The company has not identified the shipbuilder or disclosed the vessels’ construction cost.
According to Vale data cited by MOL, ethanol could reduce lifecycle carbon emissions by up to approximately 90% compared with heavy fuel oil. The result would depend on the ethanol feedstock, production process, and other lifecycle assumptions.
MOL says operating the vessels would contribute to its target of reaching net-zero greenhouse gas emissions by 2050 and help reduce emissions associated with Vale’s maritime supply chain.
The agreement forms part of Vale’s broader effort to introduce fuel-flexible vessels across its iron ore shipping network. The miner has previously entered long-term arrangements with other shipping companies for vessels capable of operating on alternative fuels.
The companies have not disclosed the financial value of the 25-year transport contract or the expected volume of iron ore covered.
Vale is a Brazilian producer of iron ore, nickel, and copper. Mitsui OSK Lines is a Japanese shipping group operating dry bulk, energy, and product transport businesses.
Write to France Pinzon at Mining.com.au
Main image: MOL Ocean Bulk
