MOL Signs Time Charter Contract with Yara, World's Largest Nitrogen Fertilizer Manufacturer, for Ammonia Carrier Green Pioneer

January 05, 2024

TOKYO-Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Takeshi Hashimoto) today announced the signing of a time charter contract for the ammonia carrier Green Pioneer with Yara Clean Ammonia Switzerland SA (YCA Switzerland), a group company of Yara International ASA (Yara; CEO: Svein Tore Holsether, Headquarters: Oslo Norway), the world's largest nitrogen fertilizer manufacturer. The vessel was delivered on December 25,2023 and is expected to be engaged in the transportation of ammonia, mainly in the Pacific region.

Ammonia is now mainly used as a raw material for fertilizers, but it is expected to see a significant increase in demand in the future as a next-generation clean energy that does not emit carbon dioxide when burned, such as mixed burning in coal-fired power plants and use as a hydrogen carrier.

MOL and the Yara Group have been working together since the signing of a memorandum of understanding on decarbonization projects including ammonia area in 2022, and the conclusion of this regular charter contract is one of the achievements resulting from that agreement.

Both companies aim to build a long-term partnership in the clean ammonia field and actively expand their business to build an ammonia supply chain.

MOL has positioned environmental strategy as one of its main strategies in its management plan "BLUE ACTION 2035" and set a goal of achieving net zero emissions by 2050 in "MOL Group Environmental Vision 2.2." The MOL Group will contribute to the realization of a decarbonized society by further accumulating a track record of high-quality and safe ammonia transportation and actively participating in the wide-ranging value chain of ammonia, which is expected to see large-scale demand in the future due to its introduction as a fuel.

[Green Pioneer Specifications]

MOL Group 5 Sustainability Issues
The MOL Group identifies "Sustainability Issues" (Materiality) as our key issues for sustainable growth with society through realization of the Group Vision.
We anticipate this initiative to contribute especially to the realization of "Safety & Value -Provide added value through safe transportation and our social infrastructure business-".