25-Year Iron Ore Transport Contract Signed with Vale

Mitsui O.S.K. Lines, announced that MOL Ocean Bulk, which operates the MOL Group’s overseas Capesize bulker business, has signed a 25-year contract with Vale International to transport iron ore using two vessels. As part of Vale’s Shipping decarbonization strategy, the project will employ the world’s first 210,000-metric-ton ore carriers equipped with a tri-fuel propulsion system that can run on ethanol, methanol, and conventional heavy fuel oil. The vessels are scheduled for delivery in 2030 and will primarily carry out the transoceanic transport of the company’s iron ore.

The vessels are not only equipped with tri-fuel engines but also feature an LNG/ammonia-ready design, enabling the future use of either fuel. In addition, they incorporate a range of energy-saving technologies available for next-generation newbuilding vessels. By providing flexibility in fuel selection according to fuel availability, decarbonization benefits, and economic considerations, the vessels broaden practical options for reducing greenhouse gas (GHG) emissions in marine transport.

Ethanol could potentially reduce carbon emissions by up to approximately 90% compared with heavy fuel oil on a full lifecycle basis, from fuel production through consumption (Note 1). In recent years, it has attracted growing attention as a renewable fuel, and its ease of handling is expected to streamline wider adoption in marine fuel applications.

Under its “BLUE ACTION 2035 Phase 2” environmental vision, the MOL Group aims to achieve net-zero greenhouse gas (GHG) emissions by 2050. Through the operation of these vessels, the group will move ahead toward achieving its own decarbonization targets while helping reduce Vale’s marine transport-related Scope 3 emissions(Note 2). Furthermore, beyond vessel operations, the MOL Group will work toward the decarbonization of the shipping industry and the realization of sustainable resource transport through collaboration with customers and partners across the entire fuel supply chain for ethanol and methanol, from procurement and supply to bunkering.