Swiss container shipping giant Mediterranean Shipping Company (MSC) has inked a deal to charter eleven dual-fuel newbuilds from Singapore’s Eastern Pacific Shipping as part of its pursuit of green goals.
“We confirm the charter of 11 LNG dual-fuel vessels from Eastern Pacific Shipping,” a spokesperson for MSC told Offshore Energy – Green Marine.
The 15,300 TEU ships are powered with liquefied natural gas (LNG) — which is, together with hydrogen , perceived by some as a bridging fuel to help the maritime industry reach the International Maritime Organization’s (IMO) decarbonization targets. Others, on the other hand, believe that LNG has a limited role to play in the sector’s decarbonization, as shown in the latest World Bank report .
The MSC charter follows last week’s deal between Eastern Pacific and Rio Tinto to charter up to six LNG-fueled bulkers to Rio Tinto.
“MSC is committed to investing in a sustainable future and while the pathway for decarbonising shipping is still unclear, with no new fuels available globally at scale to deploy across our fleet of 570 ships, this charter should help us to improve CO2 emissions performance, provide other valuable learnings and keep our options open.”
Alternative fuel options for MSC
The recent deal comes at a time when industry leaders are injecting massive capital into R&D efforts to speed up the development of future fuels and alternative propulsion technologies that would help decarbonize shipping in the long term.
Although Switzerland-based company sees LNG only as a transitional fuel and not as a long-term solution, this fuel is still viewed as an important piece of the puzzle to cut harmful emissions. According to MSC, LNG and biofuels are currently the only commercially available options to significantly reduce emissions from shipping but none of them provides a full solution.
The carrier has been exploring the viability of hydrogen and fuels derived from it as a possible fuel source for the future of container shipping. Earlier this year, it joined the Hydrogen Council to foster cross-sector collaboration that will accelerate research and development related to clean hydrogen derived fuels and solutions.
What is more, MSC has pioneered the use of up to 45% responsibly-sourced biofuel blends at scale within the existing fleet. MSC started trialing biofuels aboard vessels calling at Rotterdam, the Netherlands, in 2019.
“MSC continues to envisage a range of fuel solutions on the route to a zero-carbon future,” the spokesperson stressed.
The Swiss ship owner and operator believes that industry-wide partnerships and collaborations are crucial to accelerating the maritime industry’s decarbonization. MSC is a member of industry groups and coalitions such as the Getting to Zero Coalition.
MSC has also supported the creation of a $5 billion environmental research fund through the collection of a carbon levy or R&D collection to help accelerate the transition and introduction of zero-emission vessels by 2030.
In March 2021, governments controlling a major share of the world’s shipping tonnage submitted the proposal to the IMO to establish the $5 billion Maritime Research Fund . The fund would be formed by using mandatory contributions from the world’s shipping companies and is seen as a key initiative to drive the needed progress in developing zero-carbon tech and fuels.