Japanese shipping company Mitsui OSK Lines (MOL) has signed a memorandum of understanding to work with Australia’s Origin Energy to study the development a supply chain for green ammonia exports from Australia by the end of this year.
“MOL and Origin will complete a feasibility study on marine transportation of ammonia, demand in Japan and Asia and developing a supply chain by December of this year,” MOL says.
“MOL and Origin will complete a feasibility study on marine transportation of ammonia, demand in Japan and Asia and developing a supply chain by December of this year” MOL
Origin is pursuing several green ammonia and hydrogen projects, including a green ammonia export project in Bell Bay, Tasmania, with the first cargo targeted for 2026.
“MOL Group will not only reduce GHG emissions from its operated vessels but also contribute to reducing GHG emissions generated by society and realising a low-carbon society by taking a proactive approach to building supply chains for cleaner energy resources,” the company says.
MOL—one of world’s biggest shippers with a fleet spanning dry bulk, oil, LNG, LPG and containers—re-entered the ammonia market in May after a five-year absence, and says it has signed a contract with major ammonia trader Trammo.
“For ammonia and hydrogen, which are expected to be in large-scale demand in the future due to their introduction as fuel, we will steadily build up a track record of high-quality transportation services and safe transportation, and actively participate in a wide range of value chains,” MOL said in May. The company has also joined a project to explore the development of an ammonia fuel supply chain in Singapore.
Separately, leading ammonia producer CF Industries and Japanese trading house Mitsui & Co have agreed to study the feasibility of blue ammonia production and supply chain infrastructure as well as marketing opportunities in Japan and other markets.
“CF Industries and Mitsui share a belief that blue ammonia will play a critical role in accelerating the world’s transition to clean energy and that demand for blue ammonia will grow meaningfully,” says Tony Will, president and CEO of CF Industries.
Author: Stuart Penson