Mitsui O.S.K. Lines, Ltd. (MOL) has 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, the world's largest nitrogen fertilizer manufacturer.

In a statement, MOL said 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 said.

It added that MOL and the Yara Group have been working together since the signing of a memorandum of understanding on decarbonization projects, including the 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," the announcement said.

MOL noted it has positioned environmental strategy as one of the main strategies in its management plan "BLUE ACTION 2035" and set a goal of achieving net zero emissions by 2050.

"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," the carrier said.