MOL, Mitsubishi Shipping plan FSRU for ammonia

Japanese shipping company Mitsui OSK Lines (MOL) on February 3 announced the completion of a concept study on floating storage and regasification unit (FSRU) for ammonia fuel, in collaboration with Mitsubishi Shipbuilding.

In addition, MOL, Mitsubishi Shipbuilding, and Kansai Electric Power have signed a memorandum of understanding (MoU) to jointly conduct a study to introduce the ammonia FSRU “as a major step in adopting ammonia as a decarbonised energy.”

FSRUs offer the advantages of shorter construction time and lower costs in comparison to construction of onshore storage tanks and regasification plants, MOL said, adding they are expected to speed up the adoption of ammonia fuel and contribute to its wider use as a lower-environmental-impact next-generation fuel.