MOL Signs Time-Charter Contract for Ammonia Carrier with Yara

Japanese shipping company Mitsui O.S.K. Lines (MOL) has announced the signing of a time charter contract for the LPG/ammonia carrier Green Pioneer with Yara Clean Ammonia Switzerland, a subsidiary of Yara International ASA.

Yara International is the world’s largest nitrogen fertilizer manufacturer.

The 2010-built vessel, which was delivered to Yara on December 25, 2023, will primarily be engaged in transporting ammonia in the Pacific region. The ship has a tank capacity of 34,500 cubic meters.

The time-charter contract is reported to cover a three-year period.

Ammonia, traditionally used as a raw material for fertilizers, is expected to see a significant increase in demand as a next-generation clean fuel source, as it does not emit carbon dioxide when burned and can be mixed with coal in power plants or used as a hydrogen carrier.

MOL and the Yara Group have been collaborating on decarbonization projects, particularly in the ammonia sector, since signing a memorandum of understanding in 2022. The signing of this time charter contract marks a significant milestone in their partnership.

Both companies strive to establish a long-term collaboration in the clean ammonia supply chain.

MOL has identified environmental strategy as one of its main priorities under the management plan “BLUE ACTION 2035” and the company aims to achieve net zero emissions by 2050. By providing high-quality and secure ammonia transportation and actively participating in the ammonia value chain, MOL says it can help to contribute to the realization of a decarbonized society.