Mitsui OSK Lines (MOL) will operate two iron ore vessels weighing 210,000 tons for Vale under a 25-year contract. This contract is particularly significant as it introduces a tri-fuel system in the iron ore trade, which is part of the strategy to reduce carbon emissions in maritime transportation.
Details of the vessels and their performance
The new vessels, designed by MOL Ocean Bulk, a heavy cargo operator based in Singapore, are set to be put into service in 2030. These vessels will primarily be used for transporting iron ore from Brazil to China and other global destinations. They are capable of using ethanol, methanol, or conventional heavy fuel oil and are introduced as the first iron ore vessels with this tri-fuel configuration.
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Impact on carbon emission reduction
MOL has stated that the use of ethanol can reduce carbon emissions by up to 90% compared to heavy fuel oil, depending on the method of fuel production. Additionally, these vessels are designed with the capability to use LNG or ammonia in the future, allowing owners and charterers to adapt their fuel pathways in response to changing regulations and economics.
The design of these vessels includes energy-saving equipment aimed at reducing fuel consumption. Each vessel measures 299.95 meters in length and 50 meters in width and falls within the newcastlemax category, which is widely used on the Brazil to Asia iron ore route.
This contract is part of Vale's strategy to reduce carbon emissions in maritime transportation and helps to lower the company's Scope 3 emissions. This initiative also adds to a broader wave of commitments for tri-fuel vessels supported by Vale, which includes the chartering of eight similar vessels from HMM under 25-year contracts starting in 2030.
MOL has announced that it will collaborate with Vale and other partners in the supply, delivery, and provision of ethanol and methanol fuel to develop the necessary fuel supply chain.
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